Over the past few years, Albania has quietly become one of Europe’s most talked-about relocation spots. Some are drawn by the coastline, others by the low cost of living, and many are simply looking for a change of pace.
But as more expats, remote workers, and retirees consider making the move, there’s one thing that doesn’t get enough attention: how life in Albania works beyond the view, and especially how things work when it comes to taxes and residency.
This article isn’t meant to scare you off. It’s meant to prepare you. Whether you’re planning to stay for a few months or looking to make this your new home, here’s what you really need to know before taking the leap.
Do You Need to Pay Taxes in Albania as an Expat?
This is one of the first (and smartest) questions people ask when considering a move here. The answer isn’t black and white, it depends on how long you stay and whether you meet the criteria to become a tax resident.
In simple terms, if you spend more than 183 days in Albania in a calendar year, the government considers you a tax resident. That means you may be expected to declare and potentially pay tax on your worldwide income, not just what you earn in Albania. But there are important exceptions, especially if your home country has a double taxation treaty with Albania (and many do). These treaties are in place to make sure you don’t pay tax twice on the same income.
This is one of those areas where it’s really worth getting personalized guidance early on. Waiting until tax season can leave you feeling overwhelmed, especially if you’re not sure how the Albanian tax system works. We always recommend getting clarity before you cross that 183-day mark.
What Kind of Residency Permit Should You Apply For?
If you’re planning to stay longer than 90 days, you’ll need a residency permit, and there are different types depending on your situation. This part can feel a little bureaucratic at first, but it’s not as complicated as it might seem if you know what to expect.
For example, retirees can apply for a residence permit based on their pension or private income, while remote workers can now apply under the digital nomad category (yes, it finally exists!). If you’re planning to open a business or invest, there are also investor permits available.
The process usually involves submitting paperwork like proof of income, health insurance, a rental contract or proof of accommodation, and a criminal record certificate. Some people handle it all on their own, while others prefer working with a local expert or agency (which can save a lot of time and stress). Either way, planning ahead makes all the difference.
Is Albania Really That Affordable? Let’s Talk Real Costs
It’s no secret that Albania used to be considered a “cheap” place to live, but things are changing, especially in Tirana. The capital has seen major price increases in the past couple of years, particularly in the housing market. A one-bedroom apartment in a central area now easily costs between €500–€700 per month, and in some cases, even more.
That said, if you’re open to living outside of Tirana—in cities like Shkodër, Berat, or even by the coast in places like Vlorë or Saranda—you can still find great value. The overall cost of living is lower than in most Western countries, especially when it comes to groceries, transport, and eating out.
To give you a rough idea:
- A modest couple living in Tirana might spend around €1,000–€1,300/month total.
- In smaller towns, that figure could drop closer to €800/month.
- Healthcare is affordable (and surprisingly good), with basic private plans starting at €40–€70/month.
But more than the money, people often say the real benefit is the lifestyle, slower mornings, fresh produce, fewer bills to worry about, and time to actually enjoy life.
[Exclusive] Tirana Property Prices Surge by 50% in One Year: 2024 vs. 2025 Data
Freelancers, Remote Workers, and the Tax Question
If you’re working online for a foreign company or have your own freelance business, you might assume you can avoid taxes altogether. And in some cases, especially if you’re not a resident, you might be right. But again, if you’re spending most of the year here or establishing a base, the situation gets trickier.
Technically, once you pass the 183-day threshold or start actively conducting business from Albania, you should register and declare your income locally. This can mean registering as a sole proprietor (or similar structure), keeping monthly income records, and paying contributions.
It’s one of those “gray areas” that catches people off guard. Some only realize they should’ve registered months later, while others overpay unnecessarily. At Expatax.al, we help digital professionals figure out the right approach based on their situation, and avoid costly mistakes later.
A Personal Note: Life in Albania Isn’t Perfect, But It’s Real
As someone who was born and raised in Albania, I’ve had plenty of moments where I thought about leaving. And many expats I meet here come with the opposite story, they arrive unsure of what to expect, and somehow, Albania grows on them.
It’s not just about the low prices or the mountains and beaches. It’s the rhythm of life. Seeing people you love more often. Having space to breathe. Feeling safer walking around late at night. Yes, there are challenges, bureaucracy, slow public systems, and the occasional power cut, but for many, the trade-off is worth it.
If you’re thinking about relocating here, just know this: research is a great starting point, but living it is different. Try it out, talk to people, and don’t be afraid to ask questions. And if you need help with the paperwork, the taxes, or just understanding what’s ahead, we’re here for that.
Need help navigating your move to Albania?
Reach out to the Expatax team today, we’re here to make the process simpler, clearer, and a whole lot less stressful.
