The Fiscal Framework for Digital Nomads in Albania
Fiscal Guide
The Fiscal Framework for Digital Nomads in Albania
How income from remote work sourced abroad is treated for tax purposes.
Law 79/2021 · Law 25/2022
Albania offers a notably favourable regime for professionals who work remotely and earn income from abroad. The framework rests on two principal laws: Law no. 79/2021 “On Foreigners” (status and residence permit) and Law no. 25/2022 “On Start-ups”, as amended by Law no. 36/2023 (tax treatment). This summary sets out the key fiscal points.
01Legal status and residence permit
Article 3/39 of Law no. 79/2021 recognises the “digital mobile worker” — a foreign national who works chiefly through information-technology tools, without a fixed place of work. Article 68 provides a dedicated single residence permit for this category.
Required documentation (Article 68)
- A valid employment contract with an employer abroad, or a service contract with a client abroad;
- Evidence of sufficient income to support oneself and any dependants;
- Proof of accommodation and address in Albania;
- A health-insurance policy valid for at least one year;
- A criminal-record certificate from the country of origin.
The permit is granted for up to one year on first issue and is renewable. Digital mobile workers are also exempt from the employment-approval requirement of the National Employment Agency (Article 77, letter “e”).
02Tax treatment — the 12-month exemption
The key provision is Article 5/1 of Law no. 25/2022 (inserted by Law no. 36/2023). It establishes three essential protections.
Digital nomads are not treated as tax residents in Albania for a period of 12 months. Foreign-sourced income is not taxed here during that period.
a) Exemption from tax residency (para. 1)
The exemption applies regardless of the number of days spent in the country — the general 183-day rule does not apply during this period.
b) No “permanent establishment” (para. 2)
The fact that a non-resident entity receives services from, or employs, a digital nomad does not create a permanent establishment in Albania. This removes a common concern for foreign employers.
c) No fixed place of business (para. 3)
The nomad’s activity is not treated as a “fixed place of business”, nor as acting as an independent agent of the non-resident entity, so long as the nomad has no authority to conclude contracts on its behalf.
03Summary table
| Aspect | First year (12 months) | Legal basis |
|---|---|---|
| Foreign income | 0% — untaxed | Law 25/2022, 5/1(1) |
| Tax residency | Non-resident | Law 25/2022, 5/1(1) |
| 183-day rule | Not applicable | Law 25/2022, 5/1(1) |
| Permanent establishment | Not created | Law 25/2022, 5/1(2) |
| Residence permit | Single permit, up to 1 yr | Law 79/2021, Art. 68 |
| Employment approval | Exempt | Law 79/2021, 77(e) |
04Points to confirm case by case
The following points are not governed by the two laws above but by the tax legislation (Law no. 29/2023 “On Income Tax”) and depend on the structure chosen:
- Tax treatment after 12 months — once the exemption period ends, either the general regime or the self-employed regime applies, depending on the structure.
- Self-employed registration — a favourable regime may apply below a set annual-turnover threshold; the specific figures are confirmed under the tax law in force.
- Social and health contributions — depending on status; exempt in the first year for nomads holding the relevant permit who work for a foreign employer.
05Frequently asked questions
Is a digital nomad’s income taxed in Albania?
For the first 12 months, income sourced outside Albania is taxed at 0%. The nomad is not treated as a tax resident during this period (Article 5/1, Law 25/2022).
Does the 183-day rule apply to digital nomads?
No. During the 12-month exemption period the 183-day rule does not apply, regardless of the number of days spent in the country.
How long is the residence permit for digital nomads?
The single permit is granted for up to 1 year on first issue and is renewable (Article 68, Law 79/2021).
Does employing a nomad from a foreign company create a permanent establishment?
No. Receiving services from or employing a nomad through a non-resident entity does not create a permanent establishment in Albania (Article 5/1(2), Law 25/2022).
Note. This article is for information only and reflects the legislation in force at the time of writing. It does not constitute individual legal or tax advice. For any specific situation, we recommend consulting Vision Consulting for a personalised assessment.
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