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)
- 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)
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) |
| 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) |
| 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) |
| 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) |
How to Apply & Ensure Relief
- 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)
- Submit required payments of principal (if needed) by the categories’ deadlines. Make sure financial records reflect payment.
- Ensure all tax returns are filed up to 31 December 2024; unresolved or missing declarations may disqualify relief.
- Withdraw legal or administrative appeals if required in law to benefit.
- 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.