WB6 IIP
Western Balkans Six
Investment Incentives Platform
The Western Balkans Six Investment Incentive Platform is the first of its kind in the region, providing detailed information on available incentives in each of the WB6. It is one of the key measures under the Regional Investment Area, which is part of the Common Regional Market Action Plan 2021-2024.
Developed with input from Investment Promotion Agencies (IPAs) across the region, the platform includes both financial and non-financial incentives, categorized by type, sector, and target audience.
It provides comprehensive information for investors looking to invest in the WB6. As an evolving resource, the platform will be updated every six months to ensure it remains current and relevant.
Technological Parks - Income Tax Exemption
- Economy name
- Albania
- ID
- A39
- Incentive name
- Technological Parks - Income Tax Exemption
- Brief description
- The salaries of the staff working in research and development of the user in the park and all the staff of the developer are exempted from all taxes for a period of 10 years
- Legal reference name
- Law No. 58/2022 on Technology and Science Parks and Law No. 29/2023 “Income Tax” (“the new law”) dated 30 March 2023 was published in Albania’s Official Gazette 02/2023
- Legal reference
law section / article -
Article 69
Transitional Provision
The tax reliefs and exemptions provided for in Law No. 8438, dated 28.12.1998, "On Income Tax," as amended, continue to apply as follows:
a) For individuals engaged in certified "agritourism" activities according to the current tourism legislation, the 5% income tax rate will apply until December 31, 2029;
b) For entities operating in accommodation structures "Hotel/Resort with four and five stars, special status" as defined by tourism legislation and holding a registered and internationally recognized brand name, the exemption from corporate income tax will continue to apply according to the provisions of letter "g" of Article 18 of Law No. 8438, dated 28.12.1998, "On Income Tax," as amended;
c) For entities engaged in economic activities according to Law No. 38/2012 "On Agricultural Cooperative Societies," the 5% income tax rate will apply until December 31, 2029;
ç) For legal entities registered before the entry into force of this law, which are engaged in economic activities for the production or development of software, the 5% profit tax rate will apply until December 31, 2025;
d) For entities engaged in economic activities in the automotive industry, the 5% income tax rate will apply until December 31, 2029;
dh) For:
i. individual traders;
ii. the self-employed, and;
iii. entities:
with gross income up to 14 million ALL per year, the 0% income tax rate will apply until December 31, 2029. The 0% tax rate does not apply to taxpayers specified in subdivisions "ii" and "iii" of this letter who provide professional services. The detailed list of professional services is determined by a decision of the Council of Ministers in accordance with the current legislation regulating these professional services.
- Incentive group
- Financial
- Incentive category
- Personal Income Tax (PIT)
- Economy-wide/Sector-specific
- Sector-specific
- Sector (Simplified)
- ICT
- Sector (NACE)
- K TELECOMMUNICATION, COMPUTER PROGRAMMING, CONSULTING, COMPUTING INFRASTRUCTURE AND OTHER INFORMATION SERVICE ACTIVITIES (en)
- Size of firm that can use incentive
- All sizes of firms
- Level at which incentive is available
- Economy-wide
- Ownership of firm that can use incentive
- Any
- Incentive location
- General
- Main objective of the incentive
- Research and development (R&D)
- In case of grant, share of grant in investment (in %)
- Contact Info
- Street “Skerdilajd Llagami”, Nd. 1, H.6, Kodi postar 1019, Njësia administrative 2, Tirana
- Weblink to Incentive information in English
- Click to open
- Weblink to Incentive information in local language
- Click to open
- Eligibility criteria
description -
The activities allowed in the park are limited to research and development activities, and not to mass production of products or services.
Activities allowed in the park include activities that:
• engage in research and development, with the aim of benefiting from new technological or scientific knowledge, which enables the development of products or services;
• create new methods of production of products or services or use advanced technology in software production, data processing or similar activities;
• improve products and services in a way that brings substantial change, not of an aesthetic nature, in part or function, compared to existing products;
• focus on training and raising the capacities of professionals, in order to engage them in the production of innovative products and services.
Within the framework of research-development and innovation, the Council of Ministers may approve other permitted activities.
- Eligibility criteria
weblink - Click to open
- Awarding Authority (Name)
- Ministry of Finance, The Investment Development Agency of Albania (AIDA) and the Council of Ministers
- Application procedure + Weblink (where available)
-
Application for permits and licenses from the developer or user are to be processed within 15 - 30 working days. Under the DCM no. 337 date 31.05.2023 "For determining the procedures and the criteria for the selection of the developers of the technological and scientific parks" the selection of developers of technology and scientific parks is done based in one of the following procedures:
Bidding procedure for parks constructed on state-owned real estates - The Bidding procedure for the selection of the developer is a procedure in which any interested applicant can participate. The bidding procedure shall be notified by the competent authority in the Official Announcements Bulletin.
Procedure for selecting developers for parks constructed on private owned real estates - The selected developer must be approved by the Council of Ministers and published in the Official Announcement Bulletin.
The activity of developers of the parks will start after the approval for operation of the park is awarded by the Council of Ministers and the area, entry and exit gates and the operation of the customs point are specifically determined.
- Implementing Authority (Name)
- The Investment Development Agency of Albania (AIDA)