Personal Income Tax — Albania

Monthly salary up to ALL 50,000 (ALL 600,000 a year, about €6,200) completely tax-free. Covers minimum wage workers and lower earners. Once salary exceeds ALL 50,000, this exemption shrinks: tax is due on the amount above ALL 35,000 (salaries up to ALL 60,000) or above ALL 30,000.

Monthly salaries from ALL 50,000 to ALL 200,000 (ALL 600,000-2,400,000 a year) taxed at 13% on the amount above ALL 30,000-35,000. Covers middle-income earners. Maximum tax in this band: ALL 22,100/month.

Monthly salary above ALL 200,000 (ALL 2,400,000 a year, about €25,000): ALL 22,100 + 23% on the excess. Highest rate relatively moderate compared to EU average 35-50%.

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.