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

  • The real GDP growth for 2019 was 2.2% compared to 4.1% in 2018 and 3.8% in 2017.
  • In 2019 the value of exports was 2,429 (million Euros), with a decrease of 95 million Euros from 2018, while the value of imports was 5,277 (million Euros), characterized by an increase of 62 million Euros compared to the previous year.
  • Referring to the current data from sources in the Bank of Albania sources, the trend of FDI in the country, in terms of their inflows and stocks, is increasing and promising. FDI inflow in 2019 amounted to 1,079 million Euros and has increased by 59 million Euros (or 5.78%) compared to the previous year. The value of the stock for 2019 stands at 8,542 million Euros and has increased by 939 million Euros (or 12.35%) compared to the previous year.

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 2017,1.9 % in 2018 and 1.1 % in 2019
  • The unemployment rate by the end of 2019 reached 11.2% marking a decrease of percentage 1.1 points, compared to the same period of the previous year.