In the last week of September (25.09.2020-30.09.2020), Vladimir Boshnjakovski visited the Republic of Albania i.e. the capital Tirana and the port city of Durres. The goals of this visit was to: i) establish contacts and cooperation with law offices for future mutual cross-border legal assistance; ii) gather information about the ongoing legal frameworks and reforms of the country; iii) get in touch with the local business community and learn more about the local business climate and mind set.
With the cited goals in mind, Mr. Boshnjakovski visited five established law offices in Tirana and Durres, which specialize in servicing the needs of local and international clients. From the discussions it is to be concluded that Albania has strong and experienced business lawyers, which can service various needs of clients in all fields of business, ranging from investments in real estate, energy sector, insurance, finance, finance, construction, health care, IT etc. The people Mr. Boshnjakovski spoke with have been engaged many times on issues such as establishment of local companies, tax structuring, licensing and permits procedures, corporate takeovers, debt collection and assisting in all kind of private and business transactions.
Mr. Boshnjakovski also met briefly with Ms. Etilda Gjonaj – the Minister of Justice of Albania – and discussed with her the on-going judicial reform, the processes regarding the settlement of the complicated situation with the land registry and property title issues. Her message was that although the processes have been challenging, there have been tremendous improvements. Namely, the occasion of the meeting was a certificate of title issuing ceremony, whereby property deeds were issued were given to more than 50 people, some of whom have waited for 30 years to settle the title claims over the property on which they live.
Mr. Boshnjakovski used some of his time to meet local young managers and entrepreneurs, as well as established businessmen in the hospitality, tourism, land development, wine production and financial industries of Tirana and Durres. All of them were very interested in the future development of business relations between the Republic of Albania and the Republic of North Macedonia. Furthermore, they all shared the vision with Boshnjakovski Law Office that the Balkan Region has a bright future, despite of all the past and resent challenges.
Boshnjakovski Law Office would be happy to use its established contacts to assist anyone trying to find a lawyer, business partner or investment opportunities in Albania, as well as assist any client from Albania with their activities in the Republic of North Macedonia.
Please contact us with such requests on our e-mail (contact@boshnjakovski.com) or call us (+38970257879).
KEY FACTS ABOUT THE INVESTMENT LEGAL FRAMEWORK OF ALBANIA:
- The mostly often used company form in Albania is LLC, for which the minimal share capital is ALL 100 (little less than one Euro). The registration process lasts a couple of days. In most respects the rules regulating the functioning of an LLC are similar to those found in other states, within one peculiarity – the subsidiary and the mother company may not have the same manager.
- There are no requirements for prior general permits for foreign investments, nor a mandatory joint venture with a local investor. Albania has signed many of Bilateral Investment Treaties. Also, there is no exchange control or currency regulation.
- Albania has the following tax rates: i) VAT – general 20% rate, a beneficiary 6% rate for certain sectors and 0% rate in certain cases; ii) Corporate tax – flat 15%, with some industries being taxed with a beneficial tax rate of 5% – notably the software producing companies; iii) personal income tax is progressive, with three brackets – 0%, 13% and 23%. Albania has concluded double taxation agreements with many EU states and other major economies such as China, India, Russia, Turkey etc.
- There are no restrictions on foreigners owning buildings in the Republic of Albania. However, in regard to acquisition of land, foreign individuals or legal entities may purchase only land plots for investment purposes, or land plots being used or already used for investment purposes. However, these restrictions on land purchasing can be circumvented by an acquisition or establishment of a company under Albanian law, which may be 100% owned by a foreigner.
Note: This article should not be taken as a legal advice because the Boshnjakovski Law Office is not and does not claim to be a legal expert on the laws and regulations of Albania. If you have any detailed questions regarding the details of Albania’s framework, we would be more than happy to connect you with some of our partners in that state.
