Albania’s economy, investment climate, taxation, and strategic position

📈 Economy

Economic Growth:
In 2024, Albania recorded a GDP growth of 4.1%, driven mainly by domestic demand and the expansion of tourism.
Gross Domestic Product (GDP):
As of 2025, Albania’s GDP per capita reached $13,364 (nominal) and $22,730 (PPP).

Total FDI:
Albania attracted €1.58 billion in foreign direct investment in 2024 — a 5.6% increase compared to the previous year.
Real Estate Sector:
The real estate sector alone received over €380 million, making up 24% of total FDI — showing strong investor confidence in Albanian property.

Bank Consolidation:
Albania’s banking sector has strengthened with leading institutions like BKT, Raiffeisen Bank, OTP, and Intesa Sanpaolo dominating the market and offering stable, competitive lending.
Raiffeisen Bank:
Led a €110 million syndicated loan for renewable energy projects in 2024.
Intesa Sanpaolo:
Awarded “Best Bank in Albania 2024” by CFI.co.
BKT:
Albania’s largest bank in 2024, holding 24.6% of banking assets and 25.4% of total deposits.

Corporate Income Tax:
As of January 2024, a flat 15% corporate income tax is applied to all businesses regardless of turnover.
Social & Health Contributions:
- Employers: 16.7% total (15% social + 1.7% health)
- Employees: 11.2% total (9.5% social + 1.7% health)
Tax Incentives:
- Simplified business registration
- Double-taxation avoidance treaties
- Free trade agreements with regional countries
- Unrestricted property ownership for foreign entities

Property Price Growth:
In coastal and urban areas like Durrës, property prices increased from 67,500 ALL/m² (2023) to 71,200 ALL/m² (2024).
Housing Needs in Tirana:
An estimated 300,000 new apartments will be needed in the next 5 years to meet demand.
Currently, Tirana has around 200,000 existing units.
Commercial Rental Space:
- 150,000 m² currently active
- 250,000 m² under development until 2030
Residential Zones:
Plans for building 5,000 new villas in Tirana over the next 5 years.
Touristic Development Land:
Around 1,500 hectares nationally allocated for future tourism development.

National Tourism Strategy 2024–2030:
Targets a 138% increase in overnight stays and a 4X growth in tourism revenue by 2030.
International Visitors:
Albania welcomed 11.7 million tourists in 2024, marking a record-breaking year for the country.
Urban Planning:
Ongoing coastal and touristic development plans, especially along the Albanian Riviera, with participation from international urban planning firms.

Geographic Location:
Albania is located in Southwest Europe, on the Balkan Peninsula, bordered by:
- Greece (South)
- North Macedonia and Kosovo (East)
- Montenegro (North)
- Adriatic and Ionian Seas (West)
Coastline:
362 km along the Adriatic and Ionian Seas.
Land Area:
Total: 28,748 km²
- Land: 27,398 km²
- Water: 1,350 km²
Capital:
Tirana, with around 1 million residents
Total Population:
As of 2024, Albania’s population is 2,791,765, a slight decrease due to emigration and demographic trends.

International Memberships:
Albania is a member of the UN, NATO, OSCE, WTO, Council of Europe, and a candidate country for the EU (applied on April 28, 2009).
Positioning for Investment:
Due to its strategic location, low operational costs, favorable taxation, and liberal property laws, Albania is increasingly seen as a key regional hub for investment, especially in tourism, real estate, and renewable energy.