Withholding Tax on Non-Residents in Albania (Tatimi ne Burim)
Payments made to foreign persons or non-resident corporate entities without a permanent establishment in Albania are subject to withholding tax under Law No. 29/2023 on Income Tax:
- Dividends & Profit Distributions: 8.0% statutory withholding tax.
- Interest Payments: 15.0% statutory withholding tax.
- Royalties & IP Licensing Fees: 15.0% statutory withholding tax.
- Technical, Consulting & Management Services: 15.0% statutory withholding tax.
- Double Tax Treaties (DTT): Albania maintains active bilateral tax treaties with over 45 partner countries that may eliminate or reduce these statutory rates upon submission of an authenticated Tax Residence Certificate (Vertetim Rezidence Fiskale).
Statutory Regulatory Framework: Compliant with Law No. 29/2023 on Income Tax, Labor Code of the Republic of Albania, Law No. 7703 on Social Insurance (ISSH), and regulatory instructions issued by the General Directorate of Taxes (DPT) and Energy Regulatory Authority (ERE).