Compliance
Compliance & Relief under Albania’s Tax Obligation Forgiveness Scheme
Albania is letting businesses wipe out old tax, penalties, and interest under certain conditions—here’s how to check eligibility and act fast.
By NomadicTax Research Team • 5-8 min read • August 14, 2026
## What is Albania’s Tax Relief Initiative?
- Under **Law No. 86/2025**, Albania has introduced a sweeping relief scheme for **tax obligations owed through 2014-2024**, including penalties and interest. Substantial portions of principal obligations will either be **erased or reduced**, depending on the tax period and whether the tax itself is paid.([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1952/mbi-zbatimin-e-ligjit-nr-86-2025-per-fshirjen-shuarjen-dhe-pagesen-e-detyrimeve-tatimore?utm_source=openai))
- The Albanian Tax Administration has issued **guidelines** (Udhëzimi No. 11 of **14 May 2026**) detailing how the law is implemented. Among other things, a full forgiveness of up to **100% of penalties and interest** (faat penalties and late interest) is possible for taxpayers who pay the principal.([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1952/mbi-zbatimin-e-ligjit-nr-86-2025-per-fshirjen-shuarjen-dhe-pagesen-e-detyrimeve-tatimore?utm_source=openai))
## Which Obligations Are Eligible & What Are the Deadlines
| Period | Relief Offered | Key Conditions & Deadlines |
|---|---|---|
| **≤ 31 December 2014** | Principal obligations **fully erased**; interest and penalties erased entirely. | Eligible by just being on the administration’s list or if not excluded; no cap. ([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1952/mbi-zbatimin-e-ligjit-nr-86-2025-per-fshirjen-shuarjen-dhe-pagesen-e-detyrimeve-tatimore?utm_source=openai)) |
| **1 January 2015 – 31 December 2019** | 50% of principal erased if remaining 50% paid immediately; or 25% erased if 75% of principal paid by end-2026. Penalties & interest fully erased. | First option between 10-30 June 2026; second runs until 31 December 2026. ([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1952/mbi-zbatimin-e-ligjit-nr-86-2025-per-fshirjen-shuarjen-dhe-pagesen-e-detyrimeve-tatimore?utm_source=openai)) |
| **1 January 2020 – 31 December 2024** | 0% relief on principal (must pay in full); but interest & penalties erased if payment is made. | Payment deadline: end of 2026. ([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1952/mbi-zbatimin-e-ligjit-nr-86-2025-per-fshirjen-shuarjen-dhe-pagesen-e-detyrimeve-tatimore?utm_source=openai)) |
| **Entities excluded** | Those convicted of tax crimes or involved in ongoing tax/court proceedings; social security contributions generally excluded from relief of principal. | Obligations must not be under legal sentencing or finalized court decision; must withdraw appeals in some cases. ([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1952/mbi-zbatimin-e-ligjit-nr-86-2025-per-fshirjen-shuarjen-dhe-pagesen-e-detyrimeve-tatimore?utm_source=openai))
## How to Apply & Ensure Relief
1. Check **e-Filing system** to verify if you're on the list of eligible taxpayers. Albania’s tax authority will notify those *not* eligible. ([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1952/mbi-zbatimin-e-ligjit-nr-86-2025-per-fshirjen-shuarjen-dhe-pagesen-e-detyrimeve-tatimore?utm_source=openai))
2. Submit required payments of principal (if needed) by the categories’ deadlines. Make sure financial records reflect payment.
3. Ensure **all tax returns are filed** up to 31 December 2024; unresolved or missing declarations may disqualify relief.
4. Withdraw legal or administrative appeals if required in law to benefit.
5. Be aware: social security or health insurance contributions aren’t always forgiven for the principal.
## Example
- Company A has unpaid taxes from 2017–2018 amounting to principal EUR 10,000. It opts for 50% erasure if it pays the remaining EUR 5,000 between 10-30 June 2026. Penalties & interest are fully forgiven.
- Company B has unpaid obligations from 2022; must pay full principal, but penalties & interest may be wiped out if payment occurs by 31 December 2026.
## What to Watch For & Plan Now
- **Timely payments**: deadlines are firm. Missing 30 June or 31 December 2026 will forfeit relief opportunities under certain bands.
- **Eligibility risks**: tax criminals, ongoing litigation, or non-filing may lead to exclusion.
- **Cash-flow planning**: need to budget for payment of principal amounts where relief requires.
- **Record retention**: keep receipts and audit trails showing payment and declarations.
## Bottom Line
If you have old Albanian tax debts, this is a rare window to significantly reduce what you owe. Understand which category you fall in, meet the deadlines, and comply fully to maximize relief.