Doing Business in Albania

Doing Business in Albania

The Law “On Foreign Investments” attempts to create a hospitable investment climate. The law provides guarantees to all foreigners (either physical or judicial persons) willing to invest in Albania and stipulates the following:

·         No prior government authorization is needed and no sector is closed to foreign investment;

·         There is no limitation on the percentage share of foreign participation in companies – 100% foreign ownership is possible;

·         Foreign investors have the right to expatriate all funds and contributions in kind of their investment;

·         Albania's tax system does not distinguish between foreign and domestic investors;

·         There are no restrictions on the purchase of private residential property;

·         Foreign investments may not be expropriated or nationalized directly or indirectly and will not be subject to any measure or similar action, except for public purposes determined by law. Foreign investments will be treated in a non-discriminatory manner and paid immediately, in a fair and effective manner, in accordance with the law;

·         In all cases and at all times investments will have an equal and unbiased treatment, and will have complete protection;

·         There are no restrictions on the purchase of private residential property;

·         There are limited exceptions to this liberal investment regime, most of which apply to the purchase of real estate:

o   Agricultural land cannot be purchased by foreigners and foreign entities, but may be rented for up to 99 years; and

o   Commercial property may be purchased, but only if the proposed investment is worth three times the price of the land.

·         Investors in Albania are entitled to judicial protection of legal rights related to their investments. The Albanian Civil Procedure Code outlines provisions regarding domestic and international commercial arbitration. The ICSID Convention  has entered into force for Albania since  November 14, 1991.

Source : www.aida.gov.al 

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