Albania: New tax incentives for “digital nomads”

The law also provides for establishment of agency responsible for development and support of start-ups

New tax incentives for “digital nomads”

The Albanian Parliament approved Law no. 36/2023 providing support for the creation and development of new businesses with high growth potential (start-ups) in the field of technology and innovation, which is effective 28 June 2023.

In particular, the law provides support for “digital nomads,” defined under the law as foreign citizens who use communication technology to provide their professional services and/or perform these services on behalf of entities outside of Albania, without having a registered office or headquarters.

Support schemes for digital nomads

The law provides the following tax incentives for digital nomads in Albania:

  • Digital nomads will not be considered tax residents in Albania for a period of 12 months.
  • Non-resident entities will not be considered to have established a permanent seat in Albania just because it receives services from a digital nomad or only because it has hired a digital nomad.
  • The activity of a digital nomad will not be considered to have established a fixed place of business and the digital nomad will not be considered to be acting as an independent agent of a non-resident entity in Albania provided that does not have the authority to conclude contracts on behalf of the non-resident entity, or does not engage in any activity that is not related to his role as digital nomad.

Digital nomads can exercise their activity after being provided with the unique permit.

The law also provides for the establishment of the agency responsible for the development and support of start-ups, which will be the competent authority for the administration of the register of start-ups, as well as the management and monitoring unit for the implementation of financial support schemes provided by public funds or third parties funds for initiatives in the start-ups ecosystem.

Additionally, two new bodies will be established for evaluation of requests from start-ups and start-up facilitators, respectively the “Evaluation Commission” and the “Appeal Commission”.

Read a July 2023 report prepared by the KPMG member firm in Albania


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