Expand your business in Albania

The idea of reducing business expenses by 50% within one year may seem impossible, but there is a country where with the right guide this can be achieved and that is Albania. The aftermath of the pandemic has made firms quickly switch to remote working arrangements and it represents a fundamental change in how businesses operate.

By choosing Albania as an outsourcing destination, companies gain access to much cheaper workforce than that available in developed countries. The reason behind this is simple: cost of living and salary expectations are considerably lower in Albania compared to the USA. As a result, American companies can produce goods and offer services at a fraction of their prices through establishing operations in such developing nations like Albania where labor costs play a significant role in minimizing total expenditure.

Average salary per year of a professional in Albania: Starting from 12'000 EUR

Average salary per year of a professional in New York: Starting from 52'000 EUR

Apart from labor costs, there are massive savings that can be made on other operational expenses including real estate, utilities and administrative overheads. For example, lease costs in Albania for office spaces can be reduced as much as seventy-five percent when compared to similar facilities in major US cities. These cost efficiencies enhance overall operations and result in significant savings.

200 m2 Office in central area in Tirana : 1500-1900 Eur

200 m2 Office in central area in New York : 11'000- 18'000 Eur

In addition to Albania’s work towards digitalization, the country offers attractive tax incentives and offers a business-friendly environment for foreign investors.

• The corporate income tax (CIT) rate in Albania is 15%.
• The federal corporate tax rate in the US is 21%.

• Capital gains on the sale of shares in Albania are taxable at rate of 15%
• Capital gains on the sale of shares in USA are taxable at rate of 20%

With comparatively low rates of corporate taxation among European systems, it remains an attractive option for investors wishing to establish themselves in the region. Recent reforms aimed at improving business processes and ease of doing business have also boosted investment potential in the country.

The world economy continues interconnecting itself thus causing an increase in American companies expanding into markets such as Albania. Businesses need to adopt digital methods for saving on costs and taxes if they want take advantage of new opportunities. Both parties can benefit from each others strengths given Albania’s commitment towards digitization and favourable business environment.