LEGAL ALERT

Albania Adopts the EU Services Directive: New Rules on Establishment and Cross-Border Services

WHAT CHANGED

Law No. 42/2026 replaces Law No. 66/2016 and fully aligns Albania's general services framework with Directive 2006/123/EC. It regulates authorisation schemes, prohibited and reviewable requirements, electronic procedures, a single point of contact, service quality and administrative cooperation.

It applies to services supplied by providers established in Albania or an EU Member State, subject to express exclusions including financial, transport, healthcare, audiovisual, gambling, temporary-employment, private-security, notarial and enforcement services; taxation is outside its scope. Cross-border and EU-cooperation provisions listed in Article 41 apply on EU accession, or earlier under an agreement or reciprocity.

WHO IS AFFECTED

Providers within the law's scope, licensing authorities and recipients of covered services. The express exclusions and the phased EU provisions must be checked before applying the framework to a particular activity.

Also affected are the licensing authorities themselves, whose authorisation schemes must be assessed against the Directive's proportionality and non-discrimination requirements.

WHAT TO DO

• Identify every authorisation, licence and registration your activity currently requires, and assess which now fall within the statute's scope.
• Where a licensing requirement appears disproportionate or discriminatory, the new framework may provide grounds to challenge it.
• Foreign providers supplying into Albania without local establishment should reassess whether establishment is still necessary.
• Watch for the implementing subordinate legislation, which will carry most of the operational detail and the phasing timetable.