Tax Planning

How Albania’s Tax Amnesty & Peace Agreement Offer Strategic Relief for Businesses

With Albania’s new ‘Peace Fiscal’ Agreement and amnesty rules (Law No. 86/2025), eligible businesses have a limited time to wipe tax debt clean and correct past records—how to benefit without risk.

By NomadicTax Research Team • 5-8 min read • August 19, 2026

## Overview of Albania’s Recent Regime Albania has rolled out two key tax-relief initiatives aimed at helping businesses settle lingering liabilities and restart on cleaner terms: the **Peace Fiscal Agreement** for the 2026 fiscal year and **Law No. 86/2025**, which covers the **forgiveness and settlement of overdue tax debts**.([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1955/aplikimi-per-marreveshjen-e-paqes-fiskale-per-vitin-tatimor-2026?utm_source=openai))([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)) ### What’s on Offer - **Peace Fiscal Agreement (PFA) 2026**: Businesses and individuals subject to corporate tax or business income tax can apply via the e-filing system to benefit. Eligibility criteria include: gross income above **14 million lekë** in the prior year, no outstanding unpaid tax that’s declared, no ongoing legal or criminal proceedings, and other integrity conditions.([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1955/aplikimi-per-marreveshjen-e-paqes-fiskale-per-vitin-tatimor-2026?utm_source=openai)) - **Law No. 86/2025**: This provides the legal framework for forgiving or reducing unpaid tax obligations as of specific past periods: * Debts before **31 December 2014**: fully erased, including fines and interest.([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)) * Debts from **2015-2019**: half of principal forgiven if paid by 30 June 2026; three quarters if paid by end of the year. All fines/interest forgiven.([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)) * Debts from **2020-2024**: full principal owed, but fines/interest forgiven; full payment required by 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)) ### How To Qualify & Apply - Applications for **PFA 2026** must have been made by **5 June 2026**. Any requests after that date are not accepted.([tatime.gov.al](https://www.tatime.gov.al/d/8/45/0/1955/aplikimi-per-marreveshjen-e-paqes-fiskale-per-vitin-tatimor-2026?utm_source=openai)) - For Law 86/2025 benefits, individuals must pay the required portion and *submit any delayed declarations* by deadlines: up to 30 June or 31 December 2026 depending on the coverage period.([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)) ### Practical Examples - Company with overdue taxes from 2016: if it pays the remaining 50% principal by **30 June 2026**, under Law 86/2025 it will have the other 50% forgiven, as well as all related penalties and interest. - Individual taxpayer from 2013: owes taxes from 2014 or earlier—fully forgiven; important to have declared past due returns by necessary deadlines. ### Key Risks or Considerations - You will **not** benefit if you’re under criminal investigation or have a finalized conviction for tax fraud.([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)) - If you signed up but fail to make payments/provide documentation on time, forgiveness or benefits may be lost. - Entities already in appeal or administrative proceedings may need to surrender those in order to benefit. ## Action Plan 1. **Assess your past liabilities**: map debts by period (pre-2014, 2015-2019, 2020-2024) and check eligibility. 2. **Collect documents**: proof of gross revenues, declarations, legal standing (no criminal/tax court cases). 3. **File applications / payments before deadlines**: ideally by 30 June 2026 for the most favorable terms. 4. **Update tax practices going forward**: ensure all returns filed, use correct minimum wages/salaries for social security, adopt status-personal declarations (see below). ## Example Scenario A business had undeclared liabilities from 2018 totalling 100,000 lekë principal plus interest/fines of 20,000 lekë. If paid 50,000 lekë before 30 June 2026, the law would forgive the rest of the principal (50,000 lekë) and the full 20,000 in interest/fines, meaning you pay only **half the principal**, no penalties. ## Bottom Line For those who qualify, Albania’s tax amnesty and Peace Agreement are real chances to reset: reduce exposure, tidy up records, and move forward with better compliance. But timing, documentation, and integrity are essential. Don’t miss the deadlines.