Albania offers a very friendly legislation as regards to foreign investors. The Law “On Foreign Investments” is based on the principles of equal treatment, non-discrimination and protection of the foreign investments. According to the Law:
- There is no need for prior authorization from the government for the foreigners that want to establish a business in Albania
- There are no limitations in the share of foreign participation in Albanian companies and 100% foreign ownership is possible
- Foreign investors have the right to expatriate all funds and contributions of their investment, in kind
- They are permitted and treated based on conditions not less favorable than those afforded to domestic investments in similar circumstances, except land ownership, which is regulated by special law
- In any case, foreign investments are not treated any less favourably than foreseen by generally accepted norms of international law
- A company with foreign investment participation has the right to employ foreign citizens as well
- Foreign investments are protected by law from direct or indirect expropriation or nationalization measures, except for special cases defined by law in the interest of public use
- In all cases and at any time, investments are treated equally and impartially, and enjoy complete protection and security.
“Foreign Direct Investments” Law
FDI FLOW
For 2022, foreign investments in the country have been dominated by the Netherlands, which has contributed about 16% to the total flow, followed by Italy with 10%, Germany with 6.6%, Austria with 6% and Kosovo with 4.6%.
For 2022, the main source of FDI inflows in terms of flow was the Real Estate Activities sector which represented about 21.2% of the total flow.
Other economic sectors with a high contribution are the Extractive Industry sector with 19.5%, Electricity, gas and water supply with 12.7%, Financial and insurance activities with 11.5% and that of the Processing Industry with 10.6% to the total.
FDI STOCK
At the end of 2022, the stock indicator stands at € 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%.
For 2022, foreign investments in the country have been dominated by Switzerland which has contributed about 16.6% to the total stock, followed by the Netherlands with 16.4%, Canada with 12.7%, Italy with 10.6% and Turkey with 7.4%.
For 2022, the main source of FDI inflows in stock terms was Electricity, gas, and air conditioning supply representing 26.5% of the total stock.
Other economic sectors with a high contribution are the Extractive Industry sector with 15.3%, Financial and Insurance Activities with 12%, Information and Communication with 10.6% and Real Estate Activities with 10% of the total.
