General information about Albania

Geographic position

Albania lies in south-eastern Europe, in the west of the Balkan peninsula with an area of 28,748 km2. The length of the border line of the Republic of Albania is 1094 km: of which 657 km are land border line, 316 km sea border line, 48 km river border line and 73 km lake border line. The Republic of Albania is bordered to the north by Montenegro, to the northeast by Kosovo, to the east by Macedonia and to the south and southeast by Greece. In the west, Albania is wet by the Adriatic and Ionian seas. The average height is 708 m, which means twice as high as that of Europe. Albania is located in the humid subtropical zone of the northern hemisphere and is part of the Mediterranean climate zone.

The population of Albania on January 1, 2022 is 2,793,592 inhabitants, suffering a decrease of 1.3%, compared to January 1, 2021.

Official language - Albanian

Albanian is an Indo-European language and represents a special branch of this family based on its originality.

Albania is considered one of the most polyglot countries in Europe. Many Albanians in the country and around the world speak more than two languages. Italian is widely spoken throughout Albania. Greek, the language of the Greek minority in the south, is also very widespread in our country and English, which has become the second and indispensable language after Albanian, especially among young people. Other languages such as French and German, which are spoken by a significant number of Albanians, are not excluded.


Coastal areas: Mediterranean climate with mild and wet winters, hot and dry summers. Mountain areas: Continental climate with cold and harsh winters and wet summers.


The territories of today's Albania have been inhabited since 100,000 years ago. The country has suffered continuous invasions and at the end of the 14th century Albania was conquered by the Ottoman Empire. The Albanians successfully fought the Ottomans during the years 1443-1468 under the legendary leader Gjergj Kastrioti Skenderbeu. The Ottoman Empire was stopped by the Albanians who saved Europe from invasion. Efforts and subsequent uprisings for independence eventually led to the declaration of independence of Albania in 1912.

After 1912 until the end of the First World War, the country was attacked by neighboring countries. Albanians are well remembered for sheltering Jews from their neighbors during the war. The Communist Party took power in November 1944, when the foreign armies were expelled. Soon after, the communist regime was established under the communist leader Enver Hoxha. For about 50 years, the regime implemented the policy of poverty until Albania finally emerged from isolation in 1991. From 1991 to 1997 the country was ruled by the Democratic Party. Later by the Socialist Party and its allies. The goal of Albanian politics is to integrate the country into the European Union. The capital of Albania is Tirana (since 1920), which is the main urban center of the country, while other main cities are: Durres, Shkodra, Lezha, Fieri, Vlora, Saranda, etc.

Albania is a member of the United Nations, NATO, OSBE, KE, OBT and one of the founding countries of the Union for the Mediterranean. Albania officially applied for membership in the European Union on April 28, 2009. While on July 19, 2022, Albania and the European Union held the First Intergovernmental Conference between them in Brussels, which marked the official opening of negotiations for the membership of our country in the European Union.

Albania is also one of the initiators of the "Open Balkans", this concept started in 2019, with the purpose of creating an area of free movement of people, goods and services in the Western Balkans. "Open Balkan" aims to promote communication in all spheres. This communication aims not only at economic development, but also stability and security in the region.

Albanian Economy

Albania, previously a closed country with a centralized economy, experienced the difficult transition to a modern free market economy. Macroeconomic development reached around 6% between 2004-2008, but declined to 2% in 2009. Inflation is low and stable. The economy has been strengthened by the money sent by immigrants over the years and other external factors such as: the completion of the works for the Vlora Thermal Power Plant, which has helped to increase the production capacity for energy, while plans for the improvement of the distribution lines electricity with Kosovo and Montenegro has helped to solve the problems of energy supply and improve the economy. Likewise, with the help of European Union funds, the government is taking measures to improve national roads and the railway. This a long-term barrier to sustainable economic growth.

Also, Tourism and Real Estate have influenced the growth of the Albanian economy by 3.7 %, which is expected to slow down by 2% this year (2023), due to the consequences of the War in Ukraine, the tighter financial conditions, the slowdown in Europe and other factors political others. This is the conclusion of the Executive Board of the International Monetary Fund, which concluded the consultation for Albania.

The Albanian banking system has been strengthened with the entry of well-known banks such as: Banka OTP Albania sh.a, Tirana Bank, Banka Credins, Intesa Sanpaolo Albania, Procredit Bank, Raiffeisen Bank, etc. offering stability and unlimited financing possibilities.

Tourism and Real Estate

In recent years, tourism has become one of the most important and growing sectors of the Albanian economy and has been considered by the government as one of the main engines of national growth. Albania is increasingly being recommended as a tourist destination by various tour operators and international travel guides. Tourists who come but also emigrants who have returned to Albania after a long time, seeing that our country has taken a very big leap of development, has become a destination not only for vacations but also for investment, investing in real estate.

The geographical location of Albania, the local climate and the terrain favor the development of a tourism industry throughout the year which consists of three main areas of the product: Coastal tourism with the main destinations such as Vlora, Himara, Saranda, Ksamil which lie along the beautiful Ionian Sea and Gjiri i Lalzi, Kepi Rodoni, Velipoja, Shengjini, Durres that lie near the Adriatic Sea. Cultural tourism where the main focus has been the history of Albania in archaeology, heritage and culture. Mountain-natural-rural-ecotourism: Albania's climate, geography and physical diversity of the territory, represented by a series of mountains, lakes, rivers and lagoons is accompanied by rich biodiversity of flora and fauna. These are present in a number of national parks and nature reserves within the country. The natural and rural areas in Albania offer opportunities for the development of rural tourism, ecotourism and activities based on nature (river rafting, mountain biking, fishing, trekking, climbing, hiking, horseback riding, study trips, etc.) Among them, we can mention The valley of Valbone in Bajram Curr, the National Park of Theth which is located in the Albanian Alps 70 km from Shkodra, Dardha and Voskopoja in Korce, the mountain of Tomorri, the mountain of Dajti near the city of Tirana, Llogaraja which is located south-east of Vlora , on the border between the Adriatic and the Ionian Sea. Etc.

The tourism sector has generated economic development, employment, self-employment opportunities and interest in investing in real estate properties from both locals, Albanian immigrants and foreigners.

But who can buy in Albania, is the question?

According to the legislation in force, local and foreign companies, individuals or businesses can buy real estate without limitation, to develop it or for real estate use. So the purchase of real estate is not limited, except for land, which neither companies nor individuals can buy.

In Albania, many urban studies are being completed, mainly in tourism and infrastructure along the Albanian Riviera with the participation of many prestigious national and international design studios. This has increased interest in the real estate market in Albania, making the country an important target and a market with a long-term perspective for investors, whether these individuals or businesses.

Albania has adopted a liberal legal framework designed to create a favorable investment climate for foreign investors.

Foreigners, seeing the latest developments in terms of service quality, maintenance, infrastructure, increased security, the new and modern typology of buildings that are offered, have had a growing interest, especially to invest in the capital and in coastal properties. This trend is also noticed by the purchases made in various properties on the Albanian coast in recent years.

Low, almost non-existent property taxes, and even in rental cases the taxes are mostly covered by the receiving clients. In Tirana you can own entire blocks and the taxes you have to pay for them are negligible, compared to the big European markets or our neighbors. This is a consequence of the fiscal package applied over the years, which makes the sector one of the most profitable in the country.

Regarding the study of the residential apartment market in the city of Tirana over the years and until now, you can click on the attached link for more detailed information:

About 30-40% of real estate owners use a brokerage agency when buying, selling, renting or renting their property. For the service rendered, intermediaries are paid with commissions by the buyer, seller, tenant or lessor, when the property is sold or leased and when partial or full payments are closed. Attached is the link with complete information regarding the commissions:

General information on taxes

Resident taxpayers are subject to tax only for income generated in the territory of the Republic of Albania.

The profit tax rate is 15%.

In case of Sale-Purchase transaction, the tax is 15% of the difference. In case of sale of a property, the one who sells the property pays this tax.

For more detailed information, click on the attached link:

The tax system in Albania is very stimulating for investors since according to the Ministry of Economy, Trade and Energy, the tax on profit for companies has been reduced from 23% to 20%, the fiscal burden for social insurance taxes has been reduced with a 9% discount, the price of electricity for businesses by 30%, facilitating procedures for starting a business, etc. The Albanian government has signed bilateral agreements for the promotion and mutual protection of investments in the Republic of Albania, as well as free trade agreements with the countries of the region.