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Albania, formally the Republic of Albania, is a nation in Southeastern Europe. It is situated on the Adriatic and Ionian Seas within the Mediterranean Sea and has land boundaries with Montenegro to the northwest, Kosovo to the northeast, North Macedonia to the east, and Greece to the south. Tirana is the capital and biggest city, followed by Durrës, Vlorë, and Shkodër.
Albania, with a land area of 28,748 square kilometers, has a variety of meteorological, geological, hydrological, and morphological characteristics (11,100 sq mi). It has a diverse terrain, with snow-capped mountains in the Albanian Alps, as well as the Korab, Skanderbeg, Pindus, and Ceraunian Mountains, to the hot and sunny coastlines of the Albanian Adriatic and Ionian Seas along the Mediterranean Sea.
Albania has been inhabited by several civilizations throughout antiquity, including the Illyrians, Thracians, Greeks, Romans, Byzantines, Venetians, and Ottomans. In the 12th century, Albanians created the independent Principality of Arbër. The Kingdom of Albania and the Principality of Albania arose during the 13th and 14th centuries. Prior to the Ottoman invasion of Albania in the 15th century, Albanian resistance to Ottoman advance into Europe headed by Skanderbeg earned them praise across much of Europe. Albania was ruled by the Ottomans for over five centuries, during which time numerous Albanians (known as Arnauts) rose to prominent positions across the empire, particularly in the Southern Balkans and Egypt. Cultural advancements, credited mainly to Albanians gaining spiritual and intellectual vigor throughout the 18th and 19th centuries, definitively led to the Albanian Renaissance. After defeating the Ottomans in the Balkan Wars, Albania proclaimed independence in 1912. The Kingdom of Albania was conquered by Italy in the twentieth century, which founded Greater Albania before becoming a protectorate of Nazi Germany. After World War II, Enver Hoxha established the People's Socialist Republic of Albania, which was patterned after Hoxhaism. The Revolutions of 1991 resulted in the collapse of communism in Albania and, subsequently, the foundation of the modern Republic of Albania.
Albania is a developing nation with an upper-middle-income economy dominated by the service sector, followed by manufacturing. Following the fall of communism in 1990, it went through a transition period from centralised planning to a market-based economy. Albania offers universal health care as well as free basic and secondary education to its residents. Albania is a member of the United Nations, World Bank, UNESCO, NATO, WTO, COE, OSCE, and OIC. It has been a formal candidate for EU membership since 2014. It is a founding member of the Energy Community, together with the Organization of the Black Sea Economic Cooperation and the Union for the Mediterranean.
A year's worth of service entitles an employee to four weeks of paid vacation. Leave is measured on a prorated basis whether the person has been working for longer than a year.
There are fourteen public holidays in Albania.
An individual will take sick leave for the duration of their sickness before their doctor says they are well enough to return to work. The contractor is required to pay 80 percent of the employee's wages for the first 14 days of sick leave. After the 15th day, Social Insurance pays the person 70% of their gross wage for the previous six months.
Women are entitled to 12 months of maternity leave in a row. This requires a minimum of 35 days of leave prior to the child's birth and 63 days after the child's birth. Women who are pregnant with several children are entitled to 390 days of maternity leave.
During maternity leave, the person is paid 80 percent of the total monthly wage from the previous 12 months for the first 6 months and 50 percent for the next 6 months by Social Insurance.
No statutory laws on paternity leave are mandated in Albania.
For a child under the age of three, an employee is entitled to 15 days of paid leave per year, and for a child above the age of three, an employee is entitled to 12 days. An employee can also take an extra 30 days of unpaid leave each year.
Employees are entitled to 10 days of bereavement leave in the case of the death of a partner or a member of their immediate family.
When fixed-term contracts come to an end, neither the employee nor the employer is required to go through any type of termination process.
If an employer intends to fire an employee, the employer is required to give the employee advance notice and to meet with the employee within 72 hours to discuss the cause for termination and to enable the employee to submit counterarguments. The employee may be entitled to compensation if the employer fails to fulfill within 72 hours.
An employee will be given one month's notice throughout the first two years of work. Employees will be given two months' notice throughout their second to fifth years of work. Finally, an employee will be given three months' notice after five years of employment.
The probation period in Albania is fixed at three months.
If the employee has worked for the company for more than three years, he or she is entitled to fifteen days of severance pay.
Albania's standard work week is 40 hours spread over five days.
Overtime is defined as work exceeding 40 hours per week and is compensated at a rate of 125 percent of the regular pay. Alternatively, the employer may compensate the employee with additional time off rather than additional compensation.
Weekends and public holidays are compensated at a rate of 125 percent of regular pay.
Overtime hours cannot exceed eight hours per week (for a total of forty-eight hours worked) or twenty-eight hours per year. However, in certain circumstances (e.g., force majeure), an employee may work more than 48 hours per week, but the average weekly hours worked cannot exceed 48 over a four-month period.
Albania's minimum wage is currently 30,000 Albanian lek (ALL), or 290 US dollars per month. However, the country frequently increases its minimum wage, and employers should be aware of any changes that may affect their employees.
Albania has mandatory universal healthcare that is financed by payroll taxes and the general budget. Private healthcare is also accessible, and some businesses provide optional pension plans.
In Albania, corporate tax is imposed at a fixed rate of 15%. Businesses with less than 8 million in revenue are free from corporation tax. A corporation is tax resident if it was established in Albania, has a permanent establishment in Albania, or if management and control are exercised in Albania.
As of 2014, income tax is progressive, with three brackets.[1][2]
For a monthly income between 0 L and 30,000 L, the tax rate is 0 percent.
For a monthly income between 30,000 L and 150,000 L, the tax rate is 13 percent.
For a monthly income in excess of 150,000 L, the tax rate is 23 percent.
Previously, Albania had a 10% flat tax, which was introduced in 2008. The VAT is imposed at two distinct rates: 20% as the normal rate and 10% on medical goods.
Contributions to social security and health insurance are deducted from earnings from work, public service, and management. Contributions are made on a monthly basis, with a minimum of 22,000 and a maximum of 95,130. The employee contributes 9.5 percent, while the company contributes 15%. The cost of health insurance is 1.7 percent for both the individual and the business. The self-employed contribute 23% to social security and 7% to health insurance.
Your passport must be valid for at least three months beyond the duration of your stay. As a tourist, you are not required to obtain a visa to enter the Republic of Albania. You can stay in Albania for up to a year without applying for a residency permit. If you plan to stay in Albania for more than a year, you can apply for a residency permit once you arrive. Please visit the Embassy website for more information on residency permits in Albania.
Prospective residents or those who intend to stay in Albania for more than a year and work or study must apply for a residency permit at the office of the Regional Directorate of Border and Migration Police in the region where they intend to live.
Information about the employer and employee
Workplace details
General job description
Starting date of the job
Duration of contract (if it is fixed-term)
Duration of paid vacations
Termination conditions
Primary aspects of salary and day of receipt of the mentioned salary
Normal working hours (for a contractor or full-time employee)
In Albania, the main laws and standards apply to both contractors and full-time workers. Unless otherwise specified, a full-time employee's contract in Albania is indefinite, according to employment contract legislation. If an employer appoints an employee for a certain amount of time, it must be stated.
In Albania, the euro is generally recognized. The Albanian Leke is the indigenous currency of Albania, however many Albanians and business owners carry both Albanian Leke and Euros in their wallets.
Establishing a subsidiary in Albania is not something you should do lightly. To begin, you must choose the location of your real office space. Different districts and localities in Albania may have their own subsidiary legislation, which might complicate your growth. That is why we advocate doing research into various places around the nation to choose the optimal placement for your business.
Once you've chosen a location, you should evaluate the various entities that make sense for your business. You may pick the entity under which you want to incorporate, and this will have an effect on how you do business in the nation. Albania permits expansion via limited liability companies (LLCs), joint stock companies (JSCs), or representative offices, however many businesses opt to organize as an LLC.
The following are the processes to incorporate your Albania subsidiary as an LLC:
1. Checking the uniqueness of your name online or at a National Registration Center representative office
2. Creating and notarizing articles of association that comprise the company's internal rules
3. The Registration Center issues a Registration Certificate and a Unique Business Identification number.
4. Obtaining health insurance and social security benefits
5. Registration with the Municipality Bureau of Internal Revenue for special corporation taxes
6. Requesting the company's seal, which you will need for everyday tasks
Albania's subsidiary laws can differ according on the kind of company formed. A limited liability company must have at least one director and one shareholder who may be of any country. They will not be needed to go to or reside in Albania as part of the procedure. Additionally, you'll need 1 EUR in paid-up capital.
Once the Albania subsidiary establishment procedure is complete, you must submit financial audits to the Albanian commercial registration. These financial statements must be audited if you meet two of the following criteria: yearly revenues of at least $230,000, total assets of at least $330,000, or more than 30 workers.
