Living in Albania: residence beyond 183 days, dividends at 8 %, capital gains on real estate at 15 %

In Albania, Instruction No. 26 of the Minister of Finance, published by the tax administration, recognizes as a resident any person who meets at least one criterion of Article 8 of the Income Tax Law, namely, having a stable residence, more than 183 days of presence in the tax year, or having their center of vital interests there. Residents are taxed on both their Albanian and foreign income. Law No. 29/2023 has been in effect since January 1, 2024. According to the Ministry of Finance, it classifies income into three categories: employment (13 and 23), business activity (15 and 23), and investment (15), with a tax rate of 8 on dividends. Capital gains from the sale of real estate are taxed at 15.

This page does not deal with visas, social security contributions, or the conditions for a foreigner to purchase property.

Who is a resident?

Point 8.2 of Instruction No. 26 of September 8, 2023 (amended by the instructions of February 4, 2025, November 6, 2025, and March 12, 2026) specifies that a person is an Albanian resident if they meet at least one of the criteria in Article 8 of Law No. 29/2023. The instruction details the following points:

• stable accommodation: accommodation which the person has for long-term use, and not for a stay of less than six months (point 8.3);
• a presence of more than 183 days in the fiscal year, whether continuous or not, including arrival and departure days, regardless of nationality (point 8.4);
• the centre of vital interests, that is to say important personal ties in Albania, such as family, minor children or economic ties (point 8.7).

If a person has a stable residence in two countries, they are considered a resident in the country where their center of vital interests is located (section 8.3). If residence cannot be determined, international conventions apply (section 8.8). The tax authorities specify that residents are taxed on their income from both Albanian and foreign sources, while non-residents are taxed only on their income from Albanian sources. The instruction states "more than 183 days"; the "Individual" page of the website refers to more than 183 days within a 365-day period.

Income categories and rates

The Ministry of Finance's bulletin on tax changes for 2023 (cover: January 2024) indicates that Law No. 29/2023 replaces Law No. 8438 from January 1, 2024.

In an example from point 12.8, the instruction applies 13 % to 2,040,000 lekë, then 23 % to the next 352,000 lekë. For 2024, the Ministry of Finance bulletin on changes to the 2024 tax legislation (Table 1) publishes a monthly tax schedule for employment income, in lekë per month: up to 50,000 lekë of salary, 0 %; from 50,001 to 60,000 lekë of salary, 0 % on the first 35,000 lekë of taxable income, then 13 % on the portion exceeding 35,000 lekë; Beyond 60,000 lek of salary, 0 % is levied on the first 30,000 lek of taxable income, 13 % is levied on the portion between 30,001 and 200,000 lek, and then 22,100 lek plus 23 % on the portion exceeding 200,000 lek. The tax schedule applicable after 2024 is not detailed here. The basic law was subsequently amended by Law No. 81/2025, approved on December 11, 2025, and promulgated on January 12, 2026.

Dividends, interest, rents and taxes paid abroad

The bulletin gives 8 % for dividends and 15 % for investment income (page 13). Instruction No. 26 refers to Article 15 of the law for the list of investment income (point 10.1). It specifies that interest and dividends received by a trader or self-employed worker for their business activities fall under business income (point 13.1 b). It also indicates that the rent from a privately owned apartment is individual income of the person concerned, separate from their business activities (point 13.1 d); the extracts read do not give the rate applicable to this rent. Gains from the sale of shares of which at least 50 % of value originates from assets or rights located in Albania are of Albanian origin (point 4.11).

For foreign income, residents receive a reduction in Albanian tax equal to the amount of foreign tax paid, up to the limit of the Albanian tax due on that income, country by country. Foreign tax must be substantiated by an authentic document (point 9 of the instruction). For dividends, interest, and royalties, the tax authorities refer to the applicable tax treaties and the residence certificate issued by them.

Real estate: 15% tax on the gain

Joint instruction no. 34 of December 29, 2023 (Ministry of Finance and Land Registry Agency) sets out the following rules:

• the gain made on the transfer of land or a building is taxed at 15 % (chapter II, point 1);
• the gain is the positive difference between the selling value and the purchase value; a negative difference counts as zero (chapter II, point 2);
• The person transferring the property pays the tax before the transfer is registered;
• The local land registry offices calculate and collect it, then pay it back to the tax authorities no later than the 20th of the following month (Chapter III, points 2 and 3).

The ministry bulletin also mentions a local property transfer tax, the indicative level of which is 2 % (page 19). For properties other than buildings, the basis is the sale value; for buildings, the surface area.

Inheritance and gift of real estate

In the same instruction, the person who receives the property by inheritance, gift, or renunciation is liable for the tax (Chapter III, point 1). Point 4.2 of Chapter II provides for the following exemptions.

Instruction No. 26 (point 7.3) adds that natural persons are also subject to gift and inheritance tax, which is addressed in Chapter VI of the law. The excerpts read do not specify the tax rate.

Coordination with the Franco-Albanian convention

The French Tax Administration (BOFiP) reminds taxpayers that the tax treaty between France and Albania was signed in Tirana on December 24, 2002, and entered into force on October 1, 2005. It applies to withholding taxes on taxable amounts from January 1, 2006, and, for other taxes, to those whose taxable event occurs from that date onward (version of September 12, 2012). The withholding tax ceilings and the order of the residency criteria are detailed on our dedicated treaty page.

What this page does not cover

It does not cover the small business regime, changes to Law No. 81/2025 (crypto-assets, status of foreign artists, sponsorship), a potential regime for new residents or retirees, social security contributions, property purchases by foreigners, or residence permits. Some English pages from the tax authorities regarding the tax schedule still cite Law No. 8438 of 1998: these are not used for tax rates. Balmont Conseil is neither a law firm nor a local tax advisor: local tax matters must be verified with a professional based in Albania. Matters pertaining to France, such as departure declarations, accounts to declare, and exit tax, are addressed in our pages on tax residency.

What changes depending on your situation

• Your number of days of presence and the duration of use of your accommodation in Albania.
• The location of your family and your economic interests.
• The nature of your income: employment, business, dividends, rent, capital gains.
• The relationship to the person from whom you receive property, and its value.

The rule depends on your situation. No results are guaranteed.