Albania has recently implemented significant changes to its taxation system, particularly concerning inheritance, gifts, and gambling activities. These reforms aim to modernize the tax framework, enhance revenue collection, and align with international standards.
Inheritance and Gift Taxation
Effective January 1, 2024, under the new Income Tax Law No. 29/2023, inheritances and gifts are subject to a flat tax rate of 15%. This rate applies uniformly, without deductions for associated costs.
- Transfers among immediate family members, such as spouses and children, are exempt from this tax.
- Inheritances and gifts valued up to 5,000,000 ALL for immovable assets and up to 1,000,000 ALL for movable assets per taxpayer are also exempt.
Gambling Taxation
In 2018, a law in Albania paused betting activities, but in February 2024, Albania lifted a five-year ban on sports betting, allowing online sports betting activities to resume. The Gambling Law stipulates that only companies with substantial experience in the field are eligible for licenses, with a total of 10 online sports betting licenses available.
The license fee is set at a minimum of 400,000,000 ALL (approximately EUR 3.9 million), payable in equal instalments throughout the license term. Operators are required to process payments exclusively through financial agents, such as banks and licensed electronic currency institutions, thereby prohibiting cash transactions.
Implications and Considerations
These legislative changes have significant implications for individuals and businesses in Albania. The introduction of a flat 15% tax on inheritances and gifts simplifies the tax structure but may impact estate planning strategies. The reintroduction of online sports betting opens new avenues for revenue generation but also necessitates strict regulatory compliance from operators.
Stakeholders are advised to stay informed about these developments and consult with tax professionals if needed.
Quellen
Inheritance, Estate and Gift tax in Albania – PwC
