Why Start a Business in Albania?

Albania is a small country located in the Southeastern part of Europe, which nowadays catches the eyes of investors through a friendly foreign investment legislation enacted by the Government. This means that starting a company here can bring significant benefits to those interested in an emerging business destination. So, below, you find more answers to the question “why start a business in Albania?”

Reduced bureaucracy

Every businessperson dreams of a country where the interaction with the authorities goes smoothly, and Albania is one of those states, considering that:

- the registration of a company is done quickly with the Companies Register, as it takes about 1 or 2 days for the paperwork to be processed, and thus, the enterprise incorporated;

- licensing procedures, where they apply, can be completed online with most authorities;

- tax registration and filings can also be completed via online portals, thus ensuring minimum interaction with State employees, especially in the context of not knowing the language in the case of foreign investors.

Even so, no need to worry about language barriers, as it is possible to rely on a team of experts in company formation matters in Albania and execute any task as easy as possible. Furthermore, BridgeWest Albania can represent you during the business registration procedure, and so benefit from that quick setup process.

A low corporate tax

After easy coordination with the authorities, perhaps what an investor wants the most is a favorable tax regime. Albania has that too: one of the lowest corporate taxes in Europe, of only 15%. Also, small companies can further reduce the financial burden if they have a turnover of less than ALL 14 million (a little over EUR 144,000). 

Another tax advantage is related to reinvested profits, which are exempt from withholding taxes on dividends. This will also resolve any double taxation matters with countries where such agreements do not apply.

Great geographical location

Trade is one of the main sectors of activity in Albania, and the reason for that is its geographical location with access to the Adriatic and Ionian Seas. From its largest ports, Durres and Vlora, it is easy to reach its neighbouring countries, Italy and Greece, as well as ship goods to other countries around the world.

Albania’s infrastructure is not restricted to seaways only, as it also benefits from a well-developed road transport system, while rail projects are underway to connect the country with Western Europe.

Investments based on trade agreements

Foreign investors do not need to limit their operations to the local market, as Albania is part of the Central European Free Trade Agreement and the Stabilization and Association Agreement with the EU, so tapping into these markets is possible under very advantageous conditions. Furthermore, Albania has bilateral conventions with EFTA countries and with Turkey. Altogether, these agreements enable access to half a million consumers.

Steady economic development

With an average economic growth of 3% to 4% annually, Albania is worth starting a business in, as it offers predictability. Some of its most developed industries are:

- IT;

- construction;

- tourism;

- green energy.

Energy and tourism also benefit from special tax reductions, alongside agriculture.

In addition to these, the Albanian workforce is tech-savvy, well-prepared, and cheaper compared to other neighbouring countries. Thanks to the proximity to Greece and Italy, most employees here speak Greek and Italian; however, English is also widely spoken here.

Is Albania a country to start a business in? Yes, it is. And the reasons presented in this article are only some of those worth considering, as this country has just started developing, and good surprises are expected from an emergent economy and investment destination.