Tax
Progressive personal income tax with tiered corporate rates
Albania taxes personal income progressively and applies a reduced corporate rate to smaller businesses. A 2023 income tax act consolidated the rules, including the treatment of self-employed professionals.
Key rules
- Personal income is taxed in progressive bands with a tax-free threshold.
- Smaller companies benefit from a reduced corporate income tax rate.
- VAT applies at a standard rate with a registration threshold for small businesses.
Governing law
- Income Tax Act (Act 29/2023)
- Value Added Tax Act
In practice
The 2023 act brought many self-employed professionals into full taxation after a transition period, changing freelancer planning significantly.