Foreign citizens, the employees, employers or self-employed in registered entities for fiscal effects in the Republic of Albania, are secured and protected mandatorily, according to the Albanian legislation.
The Council of Ministers by decision no. 77 dt. 27 January 2015 published in the Official Gazette No 9 dt. 3 February 2015 excluded the following foreigners working in Albania from paying obligatory contributions and benefiting from the social insurance and health care system.
The following foreign nationals are excluded from this obligation:
a) Foreigners working for foreign entities, which, according to a treaty have not the obligation to register to the tax authorities in Albania;
b) Foreigners that are employed in foreign entities that do not have the obligation to register to the Albanian tax authorities, which come in Albania to work at a job or qualified service, under a service contract associated with a subject registered to the Albanian tax authorities, that it is not a branch or unit of the contracting subject. Extension of residence or service period is performed according to the Law no. 108/2013 “For the foreigners “;
c) Foreigners that are employed in foreign entities, that have not the obligation to be registered in the Albanian tax authorities, and are to be sent to Albania to work at a job or service, according to a contract entered into by the employing foreign entity with a registered entity in the Albanian tax authorities, that is not a branch or unit of the contracting entity, if the following conditions apply:
I. To have an agreement for the avoidance of double taxation concluded between the Albanian state and state of the foreign employer;
II. Registration procedure, the work permit and its duration to be conducted in accordance with the provisions of Law no. 108/2013 “For foreigners”;
III. The residence and the payment of the obligations, according to the fiscal legislation, should be implemented according to the specifications Law no. 9920, dated 09.05.2008, “On Procedures tax in the Republic of Albania “;
IV.The contracting entity, registered in the Albanian tax authorities, requires every 3 months, from the foreign employer entity, confirmed document by the social insurance structures of the relevant state for the payment of the social security contributions, together with the names list of foreign workers, and administers it along with the transfers documents in favor of foreign employer.
d) Foreigners with residence and permanent living outside the territory of Albania, who have activities registered in their name in both states where they perform the task of the administrator, along with another administrator, with permanent residence in Albania. In this case, the persons shall be subject to protection and compulsory social insurance in the state where they have residence and, simultaneously, prove with documents social insurance protection from relevant state.
e) Foreigners are exempted from paying social insurance contributions and the health care insurance in Albania under an agreement between their State and the Albanian state.
Exempted from the payment of mandatory contributions for health care insurance are economically active persons, which do not have permanent residence in Albania, which are employed, self-employed, unpaid family workers and individuals with regular income from movable and immovable property and other comparable resources.
Erion Lena ( Erion.Lena@eurofast.eu)
Eurofast Global, Tirana Office
Tel: +355 69 533 7456