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Business Taxation in Albania: Beyond the Headline Rate

1:15English narration · Captions in English, Albanian and GermanIn depth

A 76-second guide to the layers of business taxation in Albania: income tax, VAT, payroll, withholding and shareholder distributions. Understand the difference between adopted 2027 changes and proposals. Legal position: 3 November 2026.

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Full English transcript

Beyond the headline rate

Business tax in Albania. Think it's just fifteen percent? The real picture has more than one layer.

Zero is not the whole story

Eligible small businesses can pay zero percent income tax. But that does not remove VAT, payroll, or other obligations.

Turnover is not profit

Turnover is not profit. VAT registration and income tax follow different tests. Foreign customers do not automatically mean tax-free income.

Every layer matters

Then come salaries, withholding, cross-border payments, and local charges. Your activity and transactions determine what applies.

From profit to shareholder

And company profit is not personal money. At current standard rates, corporate tax and dividend tax together can take twenty-one point eight percent of the original profit.

Adopted is different from proposed

Planning for twenty twenty-seven? The lower VAT threshold is already adopted. Higher dividend and VAT rates remain proposals. Treat them differently.

See the whole picture

See the whole picture before you decide. Read our complete guide to business taxation in Albania. Tridens. The discipline of transformation.

Explore the service Read the related guide

General information. The right approach depends on your circumstances and the current rules.