WHY BUILD A COMPANY IN ALBANIA?Legus
Albania has very deep links with Italy thanks to its enormous proximity. This means that communications are very cheap and simplified. Many Albanians have studied in Italy and many Italians have studied at the medical university of Tirana.
Airplanes are frequent and cheap (even under 100 euros) and if you live in the south you can also reach Albania by ferry, which means bringing a car to move with greater agility in the country.
Even if you are not yet a member of the European Union, you can enter the country with a simple identity card and you can stay there for 3 months without a visa.
All these conditions make Albania very attractive for an Italian. There are not many countries that offer these advantages.
But probably the most interesting reason for investing in Albania and setting up a business is that the cost of wages and commodities is extremely low compared to almost all European countries (including the Eastern countries). Tirana is one of the cheapest capitals in Europe, surpassed only by Chisinau in Moldova. The competitive advantage offered by such low costs, such close proximity to Italy and reduced taxation are enormous if taken as a whole.
WHY YOU AGREE TO CONSTITUTE A COMPANY OR INVEST IN ALBANIA.
Albania is a small country located next to Italy on the other side of the Adriatic. Today many Italians move to Albania for mainly tax reasons because it is a new land with low taxation.
In addition to being an extremely convenient place from a fiscal point of view, to open a company, it is also an excellent place to make investments as the GDP grows every year very quickly.
The Albanian population is still more occupied in agriculture, but the country grows by 2.8% a year. A strange notion for Italy that is used to the average (0.1%). This makes Albania a great place to go to do business. Especially since probably soon Albania will become part of the European Union.
Albania is only the headquarters of your company and you do not have many Albanian suppliers, you probably should not worry about the judicial system, the chances of having a dispute in the court are very low.
TAXES IN ALBANIA
Business income tax is scaled according to turnover from 5% – 15%, quite low for the European average. In fact, the Balkans and in particular Albania offer excellent tax conditions both to businesses and individuals.
Capital gains are very low, around 15% and investment losses can be deducted from taxes. Dividends are also 15% for all resident and non-resident individuals and for resident and non-resident legal entities.
It can therefore be said that there is a kind of flat tax of 15% (in reality the tax on business income is 5% for small entities under 64,000 euros of turnover so it is not a flat tax proper).
VAT instead is perfectly aligned with the European average as it is 20%. Obviously also in this case it is lower than the Italian average.
Altogether we can say that the Albanian tax pressure is very low.