Albania graduates its corporate tax by size rather than applying one flat rate to everyone: companies under a certain turnover pay nothing at all, mid-sized ones pay a modest 8%, and only larger companies hit the standard 15%. Here's what it takes to start a business in Albania in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Person Fizik (sole trader). The individual and owner are legally the same, with no capital requirement and the simplest registration and reporting of any structure. Full personal liability applies.
- Sh.p.k. (limited liability company). Albania's most common and flexible business form for both local and foreign investors. Minimum share capital is just ALL 100 (about €1), and it can be formed by one or more individuals or legal entities.
You can start as a sole trader and convert to a Sh.p.k. later as the business grows, a low-risk way to test an idea before committing to the fuller structure.
2. Register your business
Registration runs through QKB (the National Business Center) and can move quickly: business-name checks and document preparation on day one, the online application on day two, with a NUIS/UBIN business identification number typically assigned within 24 hours of applying. A Sh.p.k.'s minimum capital plus administrative and notary fees runs roughly ALL 17,000 to 20,000 on top of the ALL 100 capital itself; a broader 2024 government study put the average all-in cost of forming a Sh.p.k., including professional fees, around €1,500.
3. Check licenses and permits
Albania doesn't issue a single national business license. What you need depends on your industry; regulated sectors carry their own permits on top of standard QKB registration.
4. Understand Albanian taxes
Corporate income tax is tiered by turnover: 0% for businesses with annual turnover under 5 million lek (roughly €40,000), 8% for turnover between 5 and 14 million lek, and 15% standard above 14 million lek (roughly €110,000). This makes Albania genuinely favorable for small and early-stage businesses specifically, not just companies in general.
VAT is 20% standard, with a reduced 6% rate for tourism accommodation and 0% for exports and certain international trade services. Registration is generally required once turnover exceeds around 10 million lek (roughly €80,000), though thresholds and exemptions can vary by sector, so confirm the current figure before you plan around it. If you hire staff, social contributions run about 15% of gross salary, split 11.2% employer and 3.8% employee, covering pension, health, and social insurance.
5. Stay compliant
Sole traders and Sh.p.k. owners alike need to stay current on income tax, VAT if registered, and social contributions, and e-invoicing activation is part of the standard post-registration setup. Most official correspondence happens in Albanian, so working with a local accountant from the start is common practice even for straightforward businesses.
Albania business costs at a glance
| Item | Cost |
|---|---|
| Sh.p.k. minimum share capital | ALL 100 (~€1) |
| Sh.p.k. full formation (avg., 2024 study) | ~€1,500 |
| Corporate tax (turnover under ~€40,000) | 0% |
| Corporate tax (turnover ~€40,000 to €110,000) | 8% |
| Corporate tax (turnover above ~€110,000) | 15% |
| VAT, standard rate | 20% |
| VAT registration threshold | ~10 million lek (~€80,000) turnover |
Frequently asked questions
What's the corporate tax rate in Albania?
Tiered by turnover: 0% under roughly 5 million lek (€40,000), 8% between 5 and 14 million lek, and 15% standard above roughly 14 million lek (€110,000).
How much capital do I need to start a Sh.p.k. in Albania?
Just ALL 100, about €1.
How much does it cost to form a Sh.p.k. in Albania?
A 2024 government study put the average all-in cost, including professional fees, around €1,500.
When do I need to register for VAT in Albania?
Once turnover exceeds around 10 million lek (roughly €80,000). The standard VAT rate is 20%.
Can I start as a sole trader in Albania and convert to a Sh.p.k. later?
Yes, that's a common, low-risk way to test an idea before committing to the fuller company structure.
Fees and rates above come from the National Business Center (QKB) and Albania's tax authorities as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to an Albania-qualified accountant or lawyer about your specific situation.