Albania has a population of more than 2.9 million people with oil, gas, mining and textiles key industries for the economy. For companies looking to expand, there are many types of companies that can be formed with varying tax rates based on annual revenue.
Labor and Payroll Considerations:
- Employment contracts should be written, and oral contracts must be written within 30 days
- Minimum wage is £213 per month
- Employers must register new employees with the local tax authorities
- Income tax and social security contributions must be withheld from employee pay
- Employers must also contribute to social security
- Foreign workers need a work permit and residence permit
Albania has recently introduced new legislation to minimize tax evasion, increase fair reporting, improve VAT and income tax collection. In an effort to digitize the economy, new electronic invoicing and turnover monitoring is in effect. Electronic transactions will now be directly reporting to tax authorities, and both buyers and sellers will receive electronic invoices.
If you are just getting started in Albania, or need to simplify operations, we can help. Our cloud-based payroll platform gives you real-time access to your payroll with customized reporting across all countries and currencies. We have a dedicated US-based service team and in-country experts to help when questions come up. Talk to us today about simplifying your global operations and payroll in Albania. Click here to learn more