The mission of Expatax is to make tax more understandable for expats and retirees. This article aims to provide a comprehensive overview of customs duties in Albania, focusing on the interests of those planning to move or retire in this beautiful country or harbouring ambitions to establish a business here. But, beyond what is included in this article, our handy TAX AI at the bottom of this page is available to answer any lingering queries.
Table of Contents
Personal Goods and Vehicle Imports Are Generally Tax-Free
To the delight of many looking to relocate, personal goods related to moving are generally exempt from import duty in Albania, including personal vehicles. This is a wonderful allowance, as in many countries, vehicle importation can endure rather hefty taxes. You can read more about this topic in our relocation import taxes guide.
What Taxes Apply To Goods Imported Into Albania?
The Harmonized Code System (HS Code) is adopted in Albania. This is a widely used system internationally and customs codes can easily be looked up for any kind of commodity or good (we particularly like this search engine). With duty rates ranging from 0% to 15%, dependent on the type of goods, Albania compares favourably to many other countries. Notably, machinery and equipment intended for business use usually enter at zero duty.
However, an important point to bear in mind is that Value Added Tax (VAT), typically charged at 20%, will generally have to be paid on imported goods. This is in line with VAT rules across practically all European countries. Note – as we have often written – that importers will still have to pay customs clearance fees, port handling fees, and other fees charged for the handling of goods. While not import taxes per se, these fees still need to be paid!
The Legal And Administrative Framework For Customs Duties In Albania
Foreign trade liberalisation in Albania dates back to 1990, with giant leaps forward in the intervening years. The country adheres to guidelines issued by the European Union (EU) and the World Trade Organization (WTO). The Directorate General of Customs manages customs in Albania, under legislative regulations such as Law no. 102/2014, “Customs Code of the Republic of Albania”, and Law no. 8474 of April 14, 1999, “On the Combined Nomenclature of Goods.” These laws are routinely adjusted in line with WTO requirements and free trade agreements, resulting in annual amendments to the goods nomenclature.
Free Trade Agreements and Preferential Tariffs
Preferential tariffs are implemented by Albania for products sourced from European Community, EFTA, and Turkey member countries due to Free Trade Agreements (SAA, CEFTA, FTA with Turkey, and FTA with EFTA countries). Note that Albania does not have a FTA with the United States of America, and that it is not part of the European Customs Union. Unfortunately, this means that goods do not travel freely between other European countries and Albania. However, there are reputable Albanian shippers with years of experience, who routinely clear customs both by sea and land.
Import and Export Requirements
Customs declarations worth over 1,000 euro are subjected to a scanning fee of 22 euros, while those under 1,000 euro incur a 5 euro scanning fee. The importer bears the responsibility to prepare the requisite import documents, which include certificates of quality, analysis, and origin of goods, VAT number of the importer, and an import authorization or license for certain goods. Practically speaking, your agent will let you know exactly what information you will need to have – and we advise you to get a consultation well ahead of time. You’ll want to have the kinks ironed out of your plan to import French wine or Italian cashmere jumpers into Albania before sending containers to the port of Durres.
Specific rules apply to food, medical products, and pharmaceuticals which mandate identification of sanitary characteristics and registration with the National Center of Pharmaceuticals and Medical Equipment respectively. The acquisition of import permits might require for additional products, as defined by the General Directorate of Customs, the central body for customs activities in Albania.
Sources
For more insight into Albanian customs regulations, visit their website.
TAX AI, at the bottom of this article, will be happy to put you in touch with reputable shipping agents.
