A 0% Corporate Tax Rate Is Real, and Here's Exactly How It Works.
Under Albanian Law No. 29/2023, companies with annual gross revenue below 14,000,000 ALL (roughly €151,000 at current rates) pay 0% corporate income tax. Not a reduced rate, not a temporary holiday tied to a special zone — a standing rule in the tax code, available to any qualifying company registered in Albania.
Company ownership doesn't affect eligibility. A UK-owned consultancy, a US-owned e-commerce business, or a Swiss-owned agency qualifies on exactly the same terms as an Albanian-owned company, as long as revenue stays under the threshold. For early-stage businesses, freelancers scaling into a company, or small teams billing clients abroad, this often means the corporate tax line on your P&L is simply zero.
The Threshold Is Based on Revenue, Not on Profit or Industry.
What counts against the 14,000,000 ALL threshold is gross annual revenue — total invoiced turnover, not net profit. A consulting business billing €120,000 a year with high margins and one billing the same amount with thin margins are treated the same way for this purpose. There's no separate list of eligible industries: the rule applies broadly across sectors, from digital services and consulting to trading and light manufacturing.
This is also why timing your company registration correctly matters. We review your projected revenue for the year and confirm exactly where you stand relative to the threshold before you register — so there are no surprises when your first tax filing comes due.
Outgrowing the 0% Rate Isn't a Cliff Edge.
Once annual gross revenue exceeds 14,000,000 ALL, the company moves onto Albania's standard corporate income tax rate — still competitive compared to most of Western Europe, and applied only going forward rather than retroactively on past income. Most founders we work with see this transition as a milestone, not a penalty: it means the business has scaled past early-stage revenue.
Separately, dividends distributed to shareholders are subject to their own withholding tax, regardless of which corporate tax rate applies to the company itself — this is a distinct line item worth planning around from the start, particularly if you intend to pay yourself dividends rather than a salary. We walk through both numbers with you in your free consultation, so you know the real, all-in picture before you register.
From Eligibility Check to a Registered, Compliant Company
Here's exactly what happens after you request your free consultation — no surprises, no unclear next steps.
You tell us your projected revenue and business activity. We confirm whether you qualify for the 0% rate and flag anything that could affect eligibility later in the year.
Within 24 hoursYou sign the power of attorney remotely. We handle company formation, NIPT issuance, and VAT registration if applicable, with the 0% corporate tax position confirmed from day one.
3–5 business daysOngoing bookkeeping and annual filings that correctly reflect your 0% rate — and a team that flags it early if your revenue trajectory means the standard rate will apply next year.
ContinuousWhat Founders Ask Us About
Corporate Tax in Albania
Companies with annual gross revenue below 14,000,000 ALL (roughly €151,000) pay 0% corporate income tax, under Albanian Law No. 29/2023. Companies above that threshold pay the standard corporate tax rate.
No, Albania is not a tax-free country in general, but it does offer a 0% corporate tax rate for smaller companies under the statutory revenue threshold, along with competitive rates for larger businesses compared to much of Western Europe.
Once annual gross revenue exceeds 14,000,000 ALL, the company moves to the standard corporate income tax rate. We confirm the exact rate and timing that applies to your business in your free consultation.
Yes. The 0% corporate tax rate under Law No. 29/2023 applies based on company revenue, not ownership — foreign-owned companies qualify on the same terms as Albanian-owned ones.
Yes, dividends distributed to shareholders are subject to a separate withholding tax in Albania, regardless of the corporate tax rate applied to the company's profits. We confirm the applicable rate for your situation in your free consultation.
Ready to Check Your
Corporate Tax Eligibility?
Let ALBTAA confirm whether your business qualifies for the 0% rate and handle company registration from there — one consultation, no obligation.