Zero taxes for startups in Albania
Zero taxes for startups in Albania, thats what The Prime Minister of Albania Edi Rama announcedÂ on aÂ press conference, emphasizing that startups which haveÂ annual turnover between 0 – 50.000.000 Albanian LEK, or around 36,400 Euros, will benefit from this opportunity.
“AllÂ businesses that have an annual turnover no more than 36,000 Euros in a fiscal year, will not pay any tax. While any other business that has a turnover between 36,000 – 58,200 Euros (Approximate value), while remain subject to VAT, while the tax on profit while drop from 7.5% to 5%.
Edi Rama promised that the Taxation Authority of Albania will move towards a more modern and friendlier approach, mimicking those that are enforced by modern European countries.
The latest move seems like quite a lucrative approach from Albania in terms of offering a suitable environment for startups and entrepreneurs, especially when the Eastern Europe region is becoming more interesting and countries like Macedonia, Kosovo and others are competing to lure businesses in, and create more jobs.
Guidance on how to register your business in Albania
There are some resources here and there on how to register your business inÂ Albania, but a really good resource is a publication from PROTIK that is a bit old but still relevant.
The registration of business entities in Albania is regulated by the Law Nr.9723 On the National Registration Center.
This Law establishes the procedures for business registration, as well as regulates the operations of the National Registration Center (NRC) and the Commercial Register. Business operations in Albania are governed by the Law Nr. 9901 On Entrepreneurs and Commercial Companies (amended). This Law regulates the status of entrepreneurs, the establishment and management of commercial companies, the rights and obligations of founders, partners, members, and shareholders, and company reorganization and liquidation.
The publication financed by the Norwegian Ministry of Foreign Affairs and prepared by Crimson Capital under the support of Athene Prosjektledelse AS and Innovation Center Kosovo is an important resource to take a look at if you’re considering of opening a business in Albania. A great resource is the Tirana Startup City guide published at startus.cc, by two known community members of the Albanian startup scene.