Self-employed (i vetëpunësuar) — 0% income tax up to ALL 14M + fixed social contributions
activeSole proprietorWhat you pay
- Personal income tax (0% up to ALL 14M, then 23%) — progressive on revenue: 0% up to 14,000,000, 23% above
- Social + health contributions (self-employed, minimum base: 23% of ALL 50,000 + 3.4% of ALL 100,000) — fixed 14,900 per month
Eligibility
- Revenue cap 14,000,000 ALL/year
- Activities: it-services, consulting, liberal-professions
- Requires tax residency
- Register as a self-employed individual (person fizik / i vetëpunësuar) with a tax number (NIPT). Personal income tax on self-employment/business income is 0% up to ALL 14 million annual gross income — a temporary relief guaranteed until 31 December 2029; income above ALL 14M is taxed at 23%. On top, a self-employed person without employees pays FIXED monthly social and health contributions computed on the minimum-wage base, regardless of income. €60k (~ALL 6M) is well within the 0% zone.
Net income examples
| Gross/year | Net/year | Burden |
|---|---|---|
| 30,000 EUR | 28,092 EUR | 6.4% |
| 60,000 EUR | 58,092 EUR | 3.2% |
| 120,000 EUR | 118,092 EUR | 1.6% |
Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.
The 0% PIT on self-employed/business income up to ALL 14M is a temporary relief running to 31 Dec 2029 (introduced by the 2023 income-tax reform after the initial plan to tax professionals was walked back); above ALL 14M turnover the whole taxable profit is taxed at 23% (a cliff — the engine models it as a bracket, exact only within the 0% zone shown here). Social + health for a self-employed person WITHOUT employees are fixed on the minimum-wage base (ALL 14,900/month in 2026), not scaled to income; those who employ staff or opt for a higher base pay more (up to the max insurable ~ALL 186,416/month). NOT modeled: the optional deemed-expense regime (moot at 0% tax), VAT (registration threshold ALL 10M — services), the disguised-employment risk if you serve a single client, and DTA relief. A very low effective burden makes Albania one of Europe's cheapest for freelancers while the relief lasts.