Liberal and reformist investment climate


Albania applies a liberal foreign investment regime with the goal of increasing foreign direct investment. The Law “On Foreign Investment” allows a 100% ownership for foreign companies and outlines specific protections for foreign investors. Albania is committed to developing a stable and predictable business climate by continuing the implementation of overarching reforms, fiscal consolidation aimed at reducing the national debt, improvement of regional cooperation, investments into infrastructure, and reform of the educational system. The Albanian government has also moved ahead with an ambitious economic and structural reform agenda which will contribute to a more attractive business environment: restoring growth, improving competitiveness and creating new jobs. The new “Strategic Investment Law” provides maximum legal guarantees for foreign investors.

Competitive labor cost

  • Albania has the most competitive wage rates in the region and a highly productive workforce. .
  • Competitive income tax, overtimes and social security.
  • Vocational training for specific sectors.

Young and well educated population

  • 46% of the population is under 35 years old.

  •  123,880 students are enrolled in Albanian universities, in the academic year 2021-2022.

  •  English, Italian and Greek are widely spoken, while French and German are taught in school.

Competitive taxation and incentives

  • Competitive tax rates
  • Incentives for strategic investments, large-scale investments and regional investments
  • Albania 1 Euro – scheme
  • Other sectorial incentives

Optimal geographic location

  • Albania has a strategic location in the western Balkans, at the crossroads of Europe’s major transit corridors, giving access to the world’s biggest trade;
  • Connection to European markets through various ports in the Adriatic and Ionian Sea;
  • Albania is a bridge between northern and southern Europe with a growing network of transport links such as ports, roads and airports.

Strong growth potential

  • Estimated real GDP growth is expected to increase by 7.2% during 2021 according to the World Bank Group.

  • Exports for the year 2022 mark the value of 4,161 million EURO, with a significant increase of 36.5% from the previous year, while imports for the year 2022 mark the value of 8,123 million EURO, with a significant increase of 22.7% from the previous year.

  • Referring to the current data from the sources of the Bank of Albania, the trend of FDI in the country, in terms of inflow and their stock, is growing and promising. For 2022, the flow indicator marks the value of  €1372 million, marking a record figure in the flow of foreign direct investments in the country. Compared to 2021, when the flow was €1035 million, we have an increase of  €337 million or 32.5%.

  • For 2022, the stock indicator marks the value of  € 11,339 million, marking a record figure in the stock of foreign direct investments in the country. Compared to 2021, when the stock was € 9,544 million, we have an increase of  € 1,795 million or 18.8%.

Free access to large markets

  • Albania has signed several free trade agreements (FTA) with key markets (European Union, Turkey, CEFTA, EFTA countries), offering customs free access to a large consumers market.
  • Albania is part of the General System of Preferences, which is an asymmetric preference system, according to which some states like: Australia, Belarus, Canada, Iceland, Japan, Kazakhstan, Norway, Switzerland, New Zealand, USA and the Russian Federation grant preference to originating goods exported from developing countries, but not vice versa.
  • Countries where Albanian preferential origin goods can be exported under preferential tariff treatment according to GSP are: Australia, Belarus, Japan, Kazakhstan, New Zealand, USA and the Russian Federation.

Macroeconomic stability

  • The situation in Albania is characterized by low prices, the level of inflation and the exchange rate.
  • Albania follows monetary policies that aim to promote low interest rates and favor the growth of lending to the economy.
  • During the year 2022, the average inflation rate was 6.7%, it seems lower than the country of the region and the EU country.
  • The unemployment rate in 2021 reached 11.5%