Are you a retiree considering a move to Albania? This article will provide you with an overview of the main topics you need to consider before making this decision. We will discuss the cost of living in Albania, including housing, healthcare, and daily expenses. Additionally, we will explore the tax aspects of retiring in Albania, and some other valuable information.
If you have any further questions, feel free to use our TAX AI at the bottom of the page for personalized assistance.
Inhaltsübersicht
Why Retire in Albania?
Albania Has a Low Cost Of Living
Albania offers a cost-effective lifestyle without compromising quality. Prices are notably lower than in many European countries, so retirees can stretch their pensions further while benefiting from affordable living expenses (including rent, groceries, eating out, utilities, and more).
You can live comfortably for an estimated $600 (rent excluded) in Tirana (where consumer prices are higher than in other cities). Apartment rentals in Tirana start at $330 (one-bedroom apartment in the city center) to $200 (outside of the center). Prices vary on the level of accommodation needed, location, the provided amenities, etc.
Property in Albania Is Affordable To Buy
Albania has some of the lowest property prices in Europe. This makes choosing an accommodation easier, whether by renting or purchasing a property. Also as an investment, Albanian property has proven to be very attractive as prices had been steadily rising (According to the Bank of Albania’s data, foreign investments in Albanian real estate surged to 291 million euros last year, marking a remarkable 52% increase compared to the corresponding period in the previous years).
To buy a property as a foreigner in Albania, you should:
- Find The Property And Pay a Deposit
- Payment Process
- Contract
- Ownership Registration
You can read more about property taxes in Albania in our guide.
You Do Not Pay Tax On Foreign Pensions In Albania
Recipients of foreign-sourced pensions in Albania do not have to pay any tax on that income. For instance, Albanian residents who receive UK state pensions or distributions from US retirement savings schemes such as a 401(k) or a Roth IRA, or Italian citizens that receive a state pension from Italy, will not pay any tax in Albania on that income.
American Retirees In Albania Still Need To File Taxes In The US
Residing outside the United States doesn’t except U.S. citizens of their tax responsibilities to the U.S. government. Even if retirees living abroad do not have U.S. income tax obligations, they are typically still required to file an annual return with the IRS. Note, however, that there are several income tax exclusions applying to US citizens residing in Albania, which makes is generally unlikely that any tax has to be paid to Uncle Sam. You can read more about US citizen tax obligations in Albania hier.
EU citizens Do Not Pay Tax On Their Pensions In Albania
It’s important to note that foreign EU retirees are exempt from paying taxes.
Non-Retirement Income Is Very Lightly Taxed
In addition to income tax exemption for foreign pensions, other types of income are also very lightly taxed. For instance, dividends are taxed at 8%, while corporate income and work done as a freelancer is generally taxed at 15%. You can read more about general taxation in Albania here.
Easy Access To National Healthcare System
Albania has over 400 public clinics, which carry out a variety of tests and offer private medical consultations, as well as offer minor surgery. In addition, there are over 40 public hospitals, including several international hospitals, providing a variety of advanced healthcare services. The medical equipment and devices and around 90% of drugs are imported.
Retirees in Albania benefit from a healthcare system that is both accessible and cost-effective. The country has made significant efforts in providing medical services, and costs are generally lower than in many Western nations.
Beautiful and Rich Landscapes
Albania has a lot of beautiful landscapes that are waiting to be explored. The country’s attractions, including the famous Riviera and Albania’s UNESCO World Heritage sites, offer retirees the opportunity to get familiar with the centuries-old roots. Find out more about the various regions of Albania hier.
Welcoming Community
Albanians are known to be very friendly and hospitable. Every foreigner who steps foot there can notice the familiar lifestyle infused with a sense of community. The warmth of the people, combined with a slower pace of life, creates an environment where connections blossom. And what else can be better than finding a sense of belonging in a new country?
Cities like Tirana, Durrës, Shkodra, Vlora, Saranda, have a significant expat population, so it’s easier to connect with an international crowd. Also, communication is not a problem as the majority of people speak either English or Italian.
Fun Fact: Coffee plays an important part in Albanian hospitality. Guests are offered coffee in every household they visit. This is a familiar and cherished tradition that continues to this day.
Legal And Financial Considerations
Planning for retirement in Albania requires a consideration of all the visa and residency options. Here is some important information you need to know:
Retirement in Albania: Who Can Apply For a Visa?
Foreigners who can prove that they are beneficiaries of a monthly pension or retirement scheme withdrawals of ALL 120,000 (roughly equivalent to EUR 1160) can apply for an Albania Retirement Visa. For instance, UK citizens taking funds out of a SIPP or US citizens withdrawing from a 401(k) or other retirement scheme can apply as early as age 55.
Check types of visas and residency permits in Albania hier.
The government fee for an Albanian Retirement Visa is approximately ALL 11,400 (around EUR/USD 100), though this amount may differ based on the country of origin. To this you should add the professional fees for the application and, where required, to translate and notarise documents. Feel free to ask TAX AI at the bottom of the article for contacts and guidance for your visa application.
Popular Retirement Locations in Albania
Now that we’re looked at the general attractiveness of Albania as a retirement destination, why not look at some of the top retirement cities across the country? These include: Tirana, Shkodra, Vlora, Saranda, Durrës and Korça.
A Practical Checklist For Retiring in Albania
For prospective retirees considering this hidden European gem, a checklist is crucial. Some of the steps to consider are:
- Pre-Move Tax Checkup
- Visa and Paperwork
- Planning for the Move of Household Goods
- Getting a Local Accountant
- Obtaining an Albanian Tax ID
- Financial Planning
- Language and Cultural Preparation
- Social Security and Pension
Remember to consult with professionals and do thorough research before making any decisions or taking action. We are proud to offer access to a network of qualified accountants and moving specialists throughout the country. Feel free to contact us for any moving and tax planning need. It’s also a good idea to create a personalized checklist based on your specific circumstances and preferences.
You May Also Be Interested In…
Albania is one of the best countries to retire in the world; promising a comfortable and culturally rich experience. With a low cost of living, a welcoming community, and diverse attractions, this country is perfect for those seeking a fulfilling and budget-friendly retirement. Here are some articles you may be interested in reading as you consider a move to Albania:
