Personal Income Tax – Albania

Annual employment income up to ALL 600,000 (approximately €4,988, $5,500) completely tax-free. Covers minimum wage workers and lower earners. Equivalent to about ALL 50,000/month.

Income from ALL 600,000 to ALL 3,000,000 (€24,942) taxed at 13%. Covers middle-income earners. Equivalent to monthly income ALL 50,000-250,000.

Income exceeding ALL 3,000,000 (€24,942) annually taxed at 23%. Highest rate relatively moderate compared to EU average 35-50%. Monthly income above ALL 250,000.

Self-employed and small businesses with annual gross income up to ALL 14 million (approximately €120,000) pay ZERO tax until December 31, 2029. Massive incentive for entrepreneurs and freelancers. Must register properly and maintain records.

Income from ALL 14-20 million taxed at 15%. Above ALL 20 million taxed at 23%. Still competitive rates. Net taxable profit (after deductible expenses) used for calculation.

Income from dividends taxed at favorable 8% flat rate. Among lowest in Europe. Applies to both residents and non-residents receiving Albanian dividends. Withheld at source.

Capital gains from sale of shares/property, interest income, royalties, cryptocurrency profits all taxed at 15%. Relatively simple system. No differentiation by holding period. Clear treatment compared to many countries.

Tax resident if present in Albania 183+ days during calendar year (consecutive or intermittent). Or if have permanent home in Albania. Residents taxed on worldwide income. Non-residents only on Albanian-source income.

Digital nomads on Unique Permit receive 12-month tax exemption from obtaining permit, regardless of tax residency status. Significant benefit. After first year, if still tax resident, worldwide income becomes taxable. Many manage this by careful day counting.