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

  • 48 % of population is under 35 years old
  • 139,043 students are enrolled at Albanian universities in the academic year 2018-2019.
  • English, Italian and Greek are all widely spoken while French and German are taught at 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.

  • The value of exports for 2021 marks the value of 3 048 million EURO, with a significant increase of 35.6% from the previous year, while the value of imports was 6 618 million EURO, with a significant increase of 32.3% from the previous year.
  • Referring to the current data from the Bank of Albania sources, the trend of FDI in the country, in terms of inflows and their stocks is increasing and promising. The inflow of FDI for the period January - September 2021, amounts to € 711 million. Compared to the same period a year ago, when the inflow was € 703 million, there is a slight increase of 1.13%, or € 8 million.
  • For the period January - September 2021, the stock indicator amounts to € 9 169 million. Compared to the same period a year ago, when the stock was € 8,347 million, the increase is by € 822 million or 9.8%.

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 macroeconomic situation in Albania is characterized by stable prices, low inflation rates and solid exchange rates.
  • Albania pursues stimulating monetary policies aiming at the maintaining of low interest rates and favoring the growth of the economy's crediting. The registered inflation has been within the objective of the monetary policy of 1-3% .
  • Average annual inflation has remained relatively stable for more than a decade with 2.0% recorded in 2017, 2.0% in 2018, 1.4% in 2019 and 1.6% in 2020

  • The unemployment rate in 2020 reached 11.7%.