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Starting this year, Albania is expected to implement a new set of fiscal and legal measures under the 2026 Fiscal Package, alongside supporting regulations. Some of these changes have already been communicated, while others reflect a continuation of the current tax framework with increased enforcement and compliance requirements.
This article outlines what is changing, what remains the same, and what businesses and individuals should prepare for.
1. Cash Payment Restrictions
Lower cash limit for business-to-business (B2B) payments
From 1 January 2026, the maximum allowed cash payment between businesses will be reduced:
- From: 150,000 ALL
- To: 100,000 ALL
Any transaction above this threshold must be completed through bank transfer or another electronic payment method. This measure is part of Albania’s ongoing effort to reduce informality and improve financial traceability.
New cash limit for individual–business transactions
A new restriction is expected to apply to cash payments between individuals and businesses:
- Maximum cash payment: 500,000 ALL
Payments above this amount will need to be made electronically. This affects sectors such as real estate-related services, construction, professional services, and high-value retail.
2. Mandatory POS and Electronic Payment Options
Businesses that accept cash payments will be required to offer electronic payment options, such as POS terminals or equivalent digital solutions.
Deadlines:
- Accommodation providers, transport services, and public institutions: by 30 May 2026
- All other businesses: by 31 December 2026
The obligation does not eliminate cash payments, but it requires businesses to give customers a cashless alternative. Non-compliance may result in administrative penalties.
3. Increase in the National Minimum Wage
As of 1 January 2026, Albania’s gross monthly minimum wage will increase:
- From: 40,000 ALL
- To: 50,000 ALL
This change directly affects:
- Payroll costs for employers
- Social and health contribution calculations
- Sectors with a high share of minimum-wage employees
Businesses should factor this increase into 2026 budgets and employment planning.
4. Personal Income Tax (No Structural Change Announced)
As of now, no new personal income tax brackets have been officially announced for 2026. Albania continues to apply its progressive income tax system, where employment income is taxed based on income bands, while certain categories (such as dividends) are taxed separately.
However, increased audit activity and enforcement are expected, especially for:
- Freelancers and self-employed individuals
- Individuals with multiple income sources
- Cross-border or foreign-sourced income
5. Corporate Income Tax
The corporate income tax rate remains at 15%, with no confirmed increase for 2026.
That said, tax authorities continue to focus on:
- Transfer pricing documentation
- Expense justification and deductibility
- Profit shifting and underreporting
Small businesses and larger companies alike should ensure that accounting records and tax filings are fully aligned.
6. VAT and Small Business Regime
As of now:
- The standard VAT rate remains 20%
- Reduced VAT rates for specific sectors remain in place
- No official change has been announced to VAT registration thresholds for 2026
However, businesses under simplified regimes should expect stricter compliance checks, particularly where cash transactions are still common.
7. Social and Health Contributions
While contribution rates themselves have not been officially changed, the increase in the minimum wage automatically raises:
- Minimum contribution bases
- Total employer and employee contribution costs
This is especially relevant for labour-intensive sectors.
Final Note
Some elements of the 2026 Fiscal Package may still be refined through secondary legislation or clarifications. However, we suggest that businesses and individuals continuously monitor official guidance and seek professional advice where needed.
