Albania Investment Law & Legal Protection

Albania provides a comprehensive legal framework for the protection of foreign investments. The Constitution guarantees the right to private property, and dedicated investment legislation ensures equal treatment for foreign and domestic investors. Albania's ongoing EU accession process is driving continuous improvement in the rule of law, judicial independence and regulatory transparency.

Investment Law Overview

Albania's primary investment legislation is the Law on Foreign Investments (Law No. 7764/1993, as amended), supplemented by the Law on Strategic Investments (Law No. 55/2015). Together, these laws establish the core principles governing foreign investment in the country:

• Foreign investors may invest in all sectors of the Albanian economy
• No prior government approval is required for foreign investments (except in regulated sectors)
• Foreign investments cannot be nationalized or expropriated except in cases of public interest, with fair and adequate compensation
• The Albanian Investment Development Agency (AIDA) serves as the key government body promoting and facilitating foreign investment

Foreign Investor Rights

Albanian law provides foreign investors with extensive rights and protections:

100% Foreign Ownership

Foreign individuals and legal entities may own 100% of shares in any Albanian company. There is no requirement for local partners, minimum local shareholding or joint venture arrangements (with limited exceptions in specific regulated sectors such as media).

Profit Repatriation

Foreign investors have the unrestricted right to repatriate profits, dividends, capital gains and liquidation proceeds. There are no exchange controls or restrictions on the transfer of funds out of Albania, provided all tax obligations have been met.

Equal Treatment (National Treatment)

Foreign investors and their investments receive treatment no less favorable than that accorded to domestic investors. This principle applies to establishment, acquisition, expansion, management, operation and disposal of investments.

Most Favored Nation Treatment

Under Albania's bilateral investment treaties, foreign investors receive treatment no less favorable than that given to investors from any third country.

Property Rights

The Albanian Constitution (Article 41) guarantees the right to private property. Foreign investors can acquire and own property in Albania, subject to the following framework:

• Buildings and structures: foreign individuals and companies can freely purchase and own buildings and apartments
• Land ownership: foreign companies registered in Albania can own land. Foreign individuals may acquire land if the investment value exceeds three times the land value
• Agricultural land: subject to specific restrictions; long-term leases are typically used for agricultural investments
• Property registration: the Immovable Property Registration Office (ASHK) maintains the national cadastral register
• Due diligence: title verification and property history checks are strongly recommended before any acquisition

Intellectual Property Protection

Albania has modernized its intellectual property framework in line with EU standards and international conventions:

• Patents: protected for 20 years under the Industrial Property Law
• Trademarks: registered and protected through the General Directorate of Industrial Property (GDIP), with a 10-year renewable term
• Copyright: automatic protection under the Copyright Law, in line with the Berne Convention
• Trade secrets: protected under the Law on Unfair Competition
• International treaties: Albania is a member of WIPO, the Paris Convention, the Madrid Protocol and the Patent Cooperation Treaty

Dispute Resolution

Foreign investors have access to multiple dispute resolution mechanisms in Albania:

Albanian Courts

Albania's judicial system comprises three levels: Courts of First Instance, Courts of Appeal and the Supreme Court. The justice reform process (launched in 2016) has resulted in the vetting of all judges and prosecutors, with the aim of establishing a more independent and competent judiciary. Specialized commercial chambers handle business disputes.

International Arbitration

Albania is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and the ICSID Convention (International Centre for Settlement of Investment Disputes). Foreign investors can include arbitration clauses in their contracts specifying international arbitral institutions such as:

• ICSID (World Bank Group) for investor-state disputes
• ICC International Court of Arbitration
• LCIA (London Court of International Arbitration)
• UNCITRAL arbitration rules

Domestic Arbitration

The Albanian Chamber of Commerce operates a domestic arbitration tribunal. Mediation is also available and increasingly encouraged as a first step in commercial dispute resolution.

Bilateral Investment Treaties (BITs)

Albania has signed over 40 bilateral investment treaties providing additional protections for foreign investors. Key treaty partners include:

• Europe: Italy, Germany, France, Austria, Switzerland, United Kingdom, Netherlands, Greece, Turkey, Spain, Sweden, Finland
• Americas: United States
• Asia and Middle East: China, Korea, Israel, United Arab Emirates, Kuwait, Qatar
• Other: Egypt, Tunisia, Malaysia, Singapore

These treaties typically provide protections including fair and equitable treatment, protection against expropriation, free transfer of funds and access to international arbitration for investor-state disputes.

EU Approximation of Laws

As an EU candidate country, Albania is progressively aligning its legal framework with the EU acquis communautaire. This process covers:

• Company law: harmonization with EU directives on corporate governance, financial reporting and auditing
• Competition law: Albania has adopted an EU-aligned competition framework enforced by the Competition Authority
• Consumer protection: progressive alignment with EU consumer rights directives
• Data protection: Albania's data protection law is aligned with EU GDPR principles
• Public procurement: electronic procurement system aligned with EU public procurement directives
• Environmental law: progressive transposition of EU environmental directives