Albania’s Proposed 2027 Fiscal Changes: What Taxpayers and companies Should Know

Albania’s draft fiscal package for 2027 published on the 28th October 2026 introduces the most significant changes in years to VAT rates, dividend tax, personal income tax and fuel taxation. It is still a draft and must be approved by Parliament before it becomes a law.

Key Proposed Changes from 1st January 2027:

1. VAT on 54 basic food items is reduced from 20% to 6%. This should lower the cost of living for families and bring Albania closer to the reduced food VAT rates applied in many EU and Balkan countries.
2. Standard VAT rises from 20% to 21%, as a tool for every consumer to contribute to the cheaper food basket.
3. VAT on accommodation rises from 6% to 10% for all tourist accommodation, except agritourism.
4. Dividend tax rises from 8% to 15%, to align dividends with other investment income, and close the loophole where salary is paid out as dividends.
5. Salary tax moves from three brackets to four. The 13% rate now covers monthly salary up to 300,000 lek, instead of 200,000 lek. Income between 300,000 and 700,000 lek is taxed at 23%, and a new rate of 30% applies to salaries above 700.000 lek.
6. The fuel circulation tax (32.4 lek per litre) is removed from the fuel price and will instead be collected through vehicle registration.

One of the most significant changes of this new fiscal package has already been approved: VAT registration threshold drops from 10 million lek to 5 million lek in annual turnover, which brings over 17,500 small businesses into the VAT system.

Who is Affected and What to Expect:

Families are expected to gain from cheaper food and fuel, while high earners, investors, hotels and small businesses pay more. Overall, the final effect depends on how far prices really fall and how businesses respond.

Eurofast’s Take 

Eurofast can help businesses check whether they will need to register for VAT, update their invoicing accounting systems for the new rates, and review how owners are paid through salary and dividend. Acting before January will give clients time to adjust their systems and pricing before the changes take effect.

Feel free to contact our Albania team at [email protected]