Albania

Albania is located in Southeast Europe, in the west of the Balkans, and shares common borders with Macedonia to the east, Greece to the south, and Kosovo and Montenegro to the north. It has access to the Adriatic and Ionian Seas in the west and southwest, being less than 72 kilometres away from Italy, across the Adriatic Sea.

Albania covers an area of 28,748 square kilometres and has a population of 2,862,000, with a density of 100.4 per square kilometre.

Albania is a parliamentary republic. The system of government is based on the separation and balancing of the legislative, executive, and judicial powers.

The official language of the Republic of Albania is Albanian, and the official currency is the lek (ALL). The capital of Albania is Tirana.

Albania’s economy has been improving in the last couple of years, with the gross domestic product (GDP) increasing at a steady rate. In 2019, the GDP real growth rate was 2.9%, after expanding 4.145% during 2018 according to the Word Bank. Growth is projected to accelerate slightly to 3.4% to 3.6% by 2020/21, as labour income gains fuel private consumption, based on World Bank projections.

Albania is currently pursuing a path of greater Euro-Atlantic integration. Its primary long-term goals are to gain European Union (EU) membership and to promote closer bilateral ties with its neighbours, the EU countries, and with the United States. Albania is a member of a number of international organisations, as well as multiple regional organisations and initiatives, including the North Atlantic Treaty Organization (NATO), the Organization for Security and Co-operation in Europe (OSCE), the United Nations (UN), the Stability Pact, the Adriatic Charter, and the World Trade Organization (WTO). In June 2006, Albania and the European Union signed a Stabilisation and Association Agreement (SAA), the first step to EU membership, which focuses on implementing essential rule of law reforms and curbing corruption and organised crime.

Albania is a party to the Central European Free Trade Agreement (CEFTA). The 2006 Interim Agreement on Free Trade between Albania and the European Union ensures benefits for the Albanian economy by expanding the markets for Albanian products with preferential treatment.

In Albania, PwC provides a full range of assurance, business advisory, tax, and accounting services to local clients and foreign investors. PwC Albania provides comprehensive tax advisory services on all aspects of Albanian taxation, as well as on international taxation. Our tax services include national and international corporate taxation, transaction support, value-added tax (VAT), transfer pricing, customs duties, expatriate tax, and accounting services.