Strategic Investments in Albania: Opportunities and Procedures for 2025

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Introduction

Albania continues to position itself as an attractive destination for both domestic and foreign investors through its strategic investment framework, as outlined by the Albanian Investment Development Agency (AIDA). The legal framework, primarily governed by Law No. 55/2015, effective since January 1, 2016, aims to boost investments in key economic sectors by offering streamlined administrative procedures, incentives, and support services for investors. With the recent extension of the application deadline to December 31, 2026, as approved by the Albanian Parliament, there is renewed opportunity for businesses to secure the coveted status of a “Strategic Investor.” This article, prepared by Oracle Solicitors Albania, delves into the sectors eligible for strategic investment, the financial and employment criteria, the application process, and the benefits of obtaining this status, providing a comprehensive guide for investors seeking to capitalize on Albania’s economic potential.

Legal Framework and Objectives

The strategic investment regime, established under Law No. 55/2015, aims to:

The recent parliamentary extension of the application deadline to December 31, 2026, reflects Albania’s commitment to fostering an investor-friendly environment. AIDA serves as the primary coordinator, working with the Strategic Investments Committee (KIS) and relevant ministries to evaluate and approve projects.

Eligible Sectors and Investment Thresholds

AIDA identifies six priority sectors for strategic investments, each with specific financial and employment criteria for two distinct procedural categories: Assisted Procedure and Special Procedure. Additionally, investments in other sectors may qualify with higher thresholds and ministerial approval. Below is a detailed breakdown:

1. Energy and Mining

2. Transport, Infrastructure, and Electronic Communications

3. Tourism

4. Agriculture and Fisheries

5. Technology and Economic Development Zones

6. Priority Development Zones

7. Other Sectors

Criteria for Strategic Investor Status

To qualify for strategic investor status, projects must meet the following criteria:

Public Interest: Demonstrated through economic impact (e.g., job creation, regional development), innovation (e.g., new technologies), and sustainability (e.g., environmental protection).
Financial Capacity: Investors must provide audited financial statements for the past three years, deposited with the tax administration, and a financial guarantee of 10–20% of the investment value.
Employment Impact: Specific sectors (tourism, agriculture, priority development zones) require minimum job creation thresholds.
Compliance: Adherence to Albanian laws, including environmental, labor, and tax regulations.

Differences Between Assisted and Special Procedures

The strategic investment framework offers two procedural tracks, each with distinct features and benefits:

Assisted Procedure

Special Procedure

Eligibility: Higher investment thresholds (e.g., €50 million for most sectors, €100 million for other sectors) and significant job creation for priority development zones.
Processing Time: 45–90 days, due to additional scrutiny and parliamentary involvement.
Examples: Large-scale energy projects or major tourism developments like luxury resorts.

Summary Table

Feature	Assisted Procedure	Special Procedure
Investment Threshold	Lower (e.g., €1–50M)	Higher (e.g., €10–100M)
Job Creation	Required in some sectors (e.g., 50–150 jobs)	Higher requirements (e.g., 600 jobs in PDZs)
Administrative Support	Streamlined permits, AIDA coordination	Enhanced support, land expropriation
Legal Certainty	Standard legal framework	Parliamentary approval of contracts
Processing Time	30–60 days	60–90 days

Tax and Fiscal Incentives

Strategic investors benefit from a range of tax and fiscal incentives, designed to reduce costs and enhance project viability. These incentives are governed by Albanian tax laws and vary by sector and investment type.

Customs Duty Relief: Exemption from customs duties on imported machinery and equipment for strategic projects.
Training Cost Deductions: Double deduction of employee training costs for up to ten years in technology and economic development zones.
Property Tax Benefits: Exemption from real estate tax for buildings in technology and economic development zones (TEDAs) for five years. Reduced property tax rates for projects in priority development zones, subject to local government approval.

These incentives are subject to compliance with tax reporting requirements and regular audits by the Albanian Tax Administration. Oracle Solicitors Albania can assist in structuring investments to maximize these benefits while ensuring compliance.

Application Process and Institutional Framework

The application process for strategic investor status is rigorous but well-structured:

Benefits of Strategic Investor Status

Streamlined Processes: Expedited permits, licenses, and regulatory approvals.
Legal Certainty: Parliamentary approval for special procedure projects ensures contract stability.
Financial Incentives: Access to tax reductions, exemptions, and other fiscal benefits.
Institutional Support: Dedicated AIDA assistance and coordination with state bodies.
Market Competitiveness: Enhanced visibility and credibility for large-scale projects.
Economic Impact: Contribution to job creation, regional development, and EU integration goals.

Why Choose Oracle Solicitors Albania?

Oracle Solicitors Albania is uniquely positioned to guide investors through the strategic investment process:

Expert Legal Advice: Tailored support for business plan preparation, financial documentation, and compliance with Albanian laws.
Regulatory Navigation: Assistance with AIDA, KIS, and ministerial approvals, ensuring a smooth application process.
Sectoral Expertise: In-depth knowledge of energy, tourism, agriculture, and technology sectors.
End-to-End Support: From project structuring to implementation, including permit acquisition and tax optimization.
Local Insights: Comprehensive understanding of Albania’s legal and economic landscape, backed by years of experience.

Conclusion

Albania’s strategic investment framework offers unparalleled opportunities for investors to contribute to the country’s economic transformation while benefiting from tailored incentives and support. With the application deadline extended to December 31, 2026, now is the time to explore opportunities in energy, tourism, agriculture, and beyond. Oracle Solicitors Albania is committed to partnering with investors to unlock these opportunities,

ensuring compliance, maximizing benefits, and driving success. Contact us at info@oraclesolicitors.al or visit Orace Solicitors Offices in Tirana to learn more about how we can support your strategic investment journey in Albania.