Overview of Law 86/2025: What It Offers
Passed in late 2025 and implemented in 2026, Albania’s Law 86/2025 addresses the cancellation (“fshirjen”) and settlement (“shuarjen”) of tax debts owed to central and local tax authorities, including customs duties. (tatime.gov.al)
Who Benefits and How
| Period | What’s Cancelled / Frozen | Conditions to Qualify |
|---|---|---|
| Until Dec 31, 2014 | Unpaid tax principal is completely cancelled, including penalties and interest. Social / health contributions? No. | Just apply between 10 June – 30 November 2026 through the regional tax directorate before paying principal. (tatime.gov.al) |
| From Jan 1, 2015 – Dec 31, 2019 | 50% of principal cancelled if you pay the remaining 50% by 30 June 2026; or 25% if paying 75% by 31 December 2026. Penalties/interest fully wiped. | Must meet payment deadlines. (tatime.gov.al) |
| From Jan 1, 2020 – Dec 31, 2024 | Penalties and interest cancelled, only if the tax principal is paid in full between 10 June and 31 December 2026. | Principal-only condition. (tatime.gov.al) |
Additionally, administrative fines for non-filing or delayed reporting are wiped, subject to timely filing and payment, per Law 86 and subsequent guidance. Subjects disqualified include entities convicted of tax crimes or under ongoing investigation. (tatime.gov.al)
Action Steps for Small Businesses & Individuals
- Check eligibility: Periods up to December 2024 are included, but only social health contributions and the tax principal have specific treatment.
- File missing declarations promptly: Unfiled returns for periods through Dec 2024 must be submitted before 30 June 2026 (some cases) to qualify. (tatime.gov.al)
- Verify debt positions: Log into e-Filing to view debts, categorization, and overpayments (credit balances) that may be offset.
- Make payments in full where required: For certain periods, partial forgiveness only applies with payment of remaining principal. Plan cash flow carefully.
- Avoid disqualification: Meet deadlines. Do not have unresolved criminal proceedings in tax/duty fields. Waive rights to appeal if needed.
Strategic Implications and Case Example
Suppose you run a retail business in Tirana with unpaid VAT debts from 2016 of €10,000 principal, plus €5,000 in penalties & interest. If you pay 50% of the principal (€5,000) by 30 June 2026, then under Law 86 you get 50% cancellation of principal = €5,000, and full cancellation of penalties / interest = €5,000. Your total payment = €5,000, debt forgiven = €10,000, for saving €5,000.
Looking Ahead
- If you’ve organized your finances to take advantage of this scheme, get proof of compliance — filed returns, payment receipts, waiver documents.
- Watch for updates: guidance and lists of subjects who qualify or not are being published & updated via e-Filing automatically.
- Learn from Algeria’s Law 86/2025 = no “new taxes,” just smart relief when compliance is taken seriously.
— This article fits the Entity Setup / Case Studies category: legal relief for obligations and how entities can use new laws to reset their liabilities.