Person Fizik Annual Compliance: The Filings Most Sole Traders Miss (and the Penalty Math)

A Person Fizik (PF) — sometimes called a Tregtari Individual or sole trader — is the simplest form of business entity in Albania. It is a direct extension of the individual owner: all profits are taxed as personal income of the proprietor, and there is no separate corporate legal personality.

Person Fizik registration is the most common choice for Albanian freelancers, independent professionals (accountants, lawyers, doctors, designers, translators), tradespeople, small retailers, and foreign digital nomads/expats running a solo consulting practice. It takes 1–3 days to register at the National Business Centre (QKB) and costs approximately ALL 1,500 (approx EUR 15) in fees.

This guide is specifically for Person Fizik compliance — if you operate through an Sh.p.k. (LLC), see our Sh.p.k. annual compliance guide. For a comparison of the two structures, see our Person Fizik vs Sh.p.k. comparison.

Despite being the simplest business form, a Person Fizik has monthly recurring compliance obligations under Law No. 9920/2008 on Tax Procedures and Law No. 87/2019 on Fiskalizimi. These are:

By the 14th of each month:

• VAT return (Deklarata e TVSH-se): If your annual turnover exceeds ALL 10 million (approx EUR 100,000) and you are VAT-registered, file the monthly VAT declaration and pay any VAT due via e-Albania.
• VAT payment: Any VAT balance (output VAT minus input VAT) must be paid to the DPT account by the 14th.

By the 20th of each month:

• Social insurance declaration (Deklarata e Kontributeve): File your monthly ISSH/SIGAL contribution declaration. Even if you have no employees, self-employed Person Fizik owners must declare and pay their own mandatory health and social insurance contributions.
• Social insurance payment: The mandatory minimum contribution for a self-employed Person Fizik is based on the minimum wage (ALL 50,000/month gross). Total combined rate (employee + employer sides, both paid by the self-employed person) is approximately 27.9% on the contribution base — approximately ALL 14,000/month (approx EUR 140) at the minimum base.
• Employee payroll declarations: If you have employees, declare their salaries, income tax withheld, and social contributions on the same schedule.

Ongoing: Issue fiscal invoices for every sale or service through your fiskalizimi-connected invoicing software. There is no specific monthly deadline for invoicing itself — it must happen in real time at the point of sale.

Some Person Fizik businesses qualify for quarterly rather than monthly VAT filing if their turnover is between ALL 5 million and ALL 10 million per year — though in practice most small PF businesses fall below the ALL 10 million VAT threshold entirely and are not VAT-registered. Check your registration status carefully, as the DPT may auto-register you for VAT if they identify that your turnover has crossed the threshold.

Simplified profit tax (tatim i thjeshtuar) declarations: If you are registered under the simplified tax regime (turnover under ALL 14 million / approx EUR 140,000), you file quarterly tatim i thjeshtuar declarations by the last day of the month following each quarter:

• Q1 (Jan–Mar): declaration due 30 April
• Q2 (Apr–Jun): declaration due 31 July
• Q3 (Jul–Sep): declaration due 31 October
• Q4 (Oct–Dec): declaration due 31 January of the following year

The tatim i thjeshtuar rate is 0% for turnover under ALL 14 million under the 2026 reform, but the declaration must still be filed even if no tax is due. Failure to file attracts penalties regardless of the zero tax liability.

The most important annual filing for a Person Fizik is the DIVA (Deklarata Individuale e të Ardhurave — Individual Annual Income Declaration). The DIVA consolidates all income sources for the year and is the basis for calculating final personal income tax.

Key DIVA facts:

• Filing deadline: 31 March of the following year (so the 2025 DIVA is due by 31 March 2026)
• Filing method: Through the e-Albania portal, DPT services section
• Who must file: All Person Fizik business owners, all Albanian tax residents with annual income over ALL 1,200,000 (approx EUR 10,000), and all taxpayers who received foreign income or investment income during the year
• What it covers: Business income (from Person Fizik activity), employment income (if any), rental income, investment income (dividends, interest, capital gains), and foreign income

The DIVA reconciles your advance tax payments (withheld at source or quarterly payments) against your full-year tax liability. If you have underpaid, you must settle the balance with the DIVA filing. If you have overpaid, you receive a credit or refund.

Key rates for 2026: 13% on taxable income from ALL 360,001 to ALL 2,237,000/year (ALL 30,000–186,416/month equivalent); 23% on the portion above ALL 2,237,000/year. The zero-rate band is ALL 360,000/year (ALL 30,000/month equivalent).

Every Person Fizik using the fiskalizimi e-invoicing system must hold a valid NAIS digital certificate. This certificate has a 1-year validity and must be renewed annually through the e-Albania portal.

Renewal checklist:

• Log in to e-Albania and navigate to NAIS services
• Select "Certifikatë Dixhitale — Rinovim" (Digital Certificate — Renewal)
• Confirm your business (NIPT) and personal details are current
• Download the new certificate file
• Install in your invoicing software according to the provider's instructions

Certificate expiry does not happen automatically without warning — e-Albania sends reminder notifications 30 and 14 days before expiry. However, if the certificate expires, you cannot legally issue fiscal invoices until it is renewed, which creates a compliance gap and risk of fines. Set a calendar reminder 45 days before your certificate expiry date.

Your accountant can manage the renewal on your behalf if they have a delegated digital power of attorney (prokurë dixhitale) through your e-Albania account. This is the preferred arrangement for most small business owners.

Here is the full annual compliance calendar for a typical Person Fizik in 2026:

• 14 January: December VAT return (if VAT-registered)
• 20 January: December social insurance declaration and payment
• 31 January: Q4 tatim i thjeshtuar declaration (if applicable)
• 14 February: January VAT return
• 20 February: January social insurance declaration
• (Every month, 14th and 20th): Repeat VAT and ISSH obligations
• 31 March: DIVA filing deadline (2025 annual income declaration) — this is the most important annual deadline
• 30 April: Q1 tatim i thjeshtuar declaration
• 31 July: Q2 tatim i thjeshtuar declaration
• 31 October: Q3 tatim i thjeshtuar declaration
• Before NAIS certificate expiry: Renew digital certificate on e-Albania
• Before 31 December: Confirm financial records are complete and reconciled for the year-end

For the complete tax deadline calendar across all entity types, see our Albania tax deadlines 2026 guide. For self-employed bookkeeping best practices, see our bookkeeping guide for self-employed persons.

Disclaimer: The information in this article is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Cross-border tax structuring requires professional analysis of your specific circumstances. We recommend consulting with a qualified tax advisor before making decisions based on this content.