Albania's headline corporate income tax (CIT) rate is 15.
The headline personal income tax (PIT) rate is 23.
The standard VAT/GST (or equivalent consumption tax) rate is 20. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
An individual is an Albanian tax resident if they have a permanent home in Albania, or if they stay in Albania (consecutively or intermittently) for more than 183 days in a calendar year, regardless of citizenship or center of interests. Non-Albanian artists are exempt from residency status for 24 months from first entry, regardless of days present. Treaty provisions prevail where a DTT applies. Residents are taxed on worldwide income; non-residents only on Albania-source income.
Albania introduced CFC rules via Law No. 29/2023 "On Income Tax," effective January 1, 2024 - applicable only to natural persons (individuals), not corporate taxpayers. An Albanian tax resident owning or controlling a foreign company can have that company's undistributed profits attributed and taxed as if they were the individual's own income.
Albania's new Income Tax Law (effective January 1, 2024) abolished the prior thin capitalization ratio entirely - interest is now deductible regardless of debt-to-capital structure. In its place, an EBITDA-based interest limitation rule (Article 31, aligned with BEPS Action 4) caps deductible interest at 30% of taxable EBITDA, and - unlike the prior regime, which applied only to related-party debt - the new rule extends to debt from all parties, related or unrelated. A separate average-interest-rate cap disallows interest exceeding the 12-month average bank lending rate published by the Bank of Albania.
Albania maintains double tax treaties with more than 40 countries.