Albania

Individual - Taxes on personal income

Last reviewed - 05 July 2024

Individual taxpayers, both residents and non-residents, are subject to personal income tax (PIT). Albanian law applies the principle of worldwide taxation. Resident individuals are taxed on all sources of income in and outside the territory of Albania, while non-resident individuals are taxed on income generated only in the territory of Albania.

Personal income tax rates

Taxable income of the individual (subject to PIT) is composed of three categories: 

  • Income from employment.
  • Business income.
  • Income from investments.

Income from employment

The following tax rates apply to income generated from employment:

Monthly personal income from employment (ALL) Taxable income per month (ALL) PIT rate
From To From To
0 50,000 0 50,000 0%

50,001

60,000

0 35,000 0%
35,001 60,000 13% of the amount exceeding ALL 35,000

60,001

Above

0 30,000 0%
30,001 200,000 13% of the amount exceeding ALL 30,000
200,001 Above ALL 22,100 + 23% of the amount exceeding ALL 200,000

From 1 January 2025, taxable income from employment is taxed at the following progressive rates:

Annual tax base (ALL) PIT rate (%)
0 to 2,040,000 13
Over 2,040,000 23

Business income

Net taxable income (taxable profit) from business for commercial individuals and the self-employed is taxed at the following progressive rates:

Annual tax base (ALL) PIT rate (%)
0 to 14 million 15
Over 14 million 23

Note that natural persons, individual traders, or self-employed individuals with an annual turnover of up to ALL 10 million have the right to choose a special regime that allows for an automatic deduction of the business expenses up to a specific percentage, depending on their business activity. Once chosen, this regime cannot be changed for three consecutive years.

Income from investments

Investment income is taxed at the following rates:

  • Income from dividends: 8%.
  • Any other item of investment income: 15%.