By Alba Legal – Your Trusted Partner in Albanian Business Law.
Albania has emerged as an attractive destination for foreign investors, thanks to its strategic location, growing economy, and ongoing legal reforms. However, navigating international business law in Albania requires a deep understanding of local regulations, bilateral treaties, and EU-aligned frameworks. At Alba Legal, our expertise in cross-border transactions, foreign investments, and corporate compliance ensures that businesses operate smoothly within Albania’s legal landscape.
How International Business Law Applies in Albania
1. Foreign Direct Investment (FDI) Regulations
Albania encourages foreign investment through liberal policies, tax incentives, and protections under bilateral investment treaties (BITs). Key aspects include:
– No restrictions on foreign ownership (except in sensitive sectors like defense).
– Tax incentives for strategic sectors (tourism, energy, agriculture).
– Investment guarantees under the Albanian Investment Development Agency (AIDA) and international treaties.
Example: A German renewable energy company investing in solar farms in Albania benefits from tax exemptions under the Law on Strategic Investments, while Alba Legal ensures compliance with local licensing and land acquisition laws.
2. Corporate Structures & Business Entities
Foreign investors can establish:
– Limited Liability Companies (Sh.p.k) – Most common for SMEs.
– Joint-Stock Companies (Sh.a) – Suitable for larger ventures.
– Branch or Representative Offices – For foreign companies expanding into Albania.
Example: An Italian logistics firm setting up a Sh.p.k in Tirana relies on Alba Legal for drafting shareholder agreements, registration with the National Business Center (NRC), and navigating notarial requirements.
3. Commercial Contracts & Dispute Resolution
International contracts must align with the Albanian Civil Code and international standards (e.g., UNIDROIT Principles). Key considerations:
– Enforceability of foreign judgments (Albania is part of the New York Convention on Arbitration).
– Alternative Dispute Resolution (ADR) – Mediation and arbitration are preferred for cross-border disputes.
Example: A Dutch-Albanian joint venture includes an ICC arbitration clause in their contract. When a dispute arises, Alba Legal represents the client in arbitration proceedings, ensuring enforceability under Albanian law.
4. Taxation & Double Taxation Treaties (DTTs)
Albania has DTTs with over 40 countries (including the UK, Germany, and Turkey) to prevent double taxation. Key tax aspects:
– Corporate tax rate: 15% (one of the lowest in the region).
– VAT: 20% (standard rate).
– Withholding taxes: Reduced under DTTs.
Example: A Turkish construction firm operating in Albania benefits from a 5% withholding tax on dividends (instead of 15%) under the Albania-Turkey DTT, as structured by Alba Legal’s tax team.
5. Employment & Immigration Law
Hiring foreign employees requires compliance with:
– Work permit regulations (quota system for non-EU nationals). – Labor Code provisions on contracts, termination, and benefits.
Example: A UK tech startup hiring Albanian and non-EU engineers receives end-to-end support from Alba Legal in securing work permits and drafting compliant employment contracts.
How Alba Legal Supports International Businesses in Albania
At Alba Legal, we provide tailored legal solutions for foreign investors and multinational companies, including:
Company Formation & Corporate Governance – Registration, licensing, and compliance.
Mergers & Acquisitions (M&A) – Due diligence, transaction structuring.
Contract Drafting & Negotiation – Ensuring enforceability under Albanian and international law.
Tax & Customs Advisory – Optimizing tax efficiency under DTTs.
Dispute Resolution – Litigation, arbitration, and mediation.
Real Estate & PPP Projects – Land acquisition, concessions, and regulatory approvals.
Why Choose Alba Legal?
– Bilingual Expertise – Fluent in Albanian, English, Italian, and German.
– International Network – Collaboration with global law firms for seamless cross-border transactions.
– Pro-Business Approach – Practical, results-driven legal strategies.
Final Thoughts
Albania’s evolving legal framework offers significant opportunities for international businesses, but success depends on expert guidance. Whether you’re entering the Albanian market or expanding operations, Alba Legal ensures compliance, minimizes risks, and maximizes growth. Contact us today for a consultation on your international business needs in Albania!