Titelmasterformat durch Klicken bearbeiten ALBANIA IN FIGURES

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1 Titelmasterformat durch Klicken bearbeiten ALBANIA IN FIGURES

2 Albania Area: km² Population 2,9 million GDP (2015) 11,5 billion Euro GDP/capita (Euro at PPP) Euro GDP real change 3,4 % FDI Inflow 983 million Euro Average gross monthly wages Business Languages Currency 264 Euro Albanian, English, Italian ALL (Albanian Lek) Av. Exchange rate (2016) 1 Euro = 137,36 2

3 Albania as a Business Location Strategic geographical location Free market access Positive and business friendly environment One Stop Shop for company registration Natural resources Investment opportunities - Incentives in Sub-Contracting (esp. textile/light industry) Supportive legal framework Competitive workforce low cost of labor, a young labor force, multilingual 3

4 Albania - Growth markets Energy (hydropower), oil and gas production Light industry: textiles, shoes, medical, electronic, metal products Telecommunication & IT Infrastructure & logistics Tourism: hotels and holiday resorts Agriculture: fruit/vegetables, medical plants, organic products Services: i.a call centers Mining (chrome, iron, nickel, copper, gold) Enviroment and communal services: recycling, water and sewerage 4

5 Albania - Growth Impulses*... in Existing Sectors Oil & Gas & Extracting Sector Biggest Onshore Oil-Field in Europe New Gas Resources Off-Shore Trans-Adriatic Pipeline TAP Energy (if functional market), Transport, Infrastructure EU-funded Projects (Agribusiness) & EU-Norms-Adaptation (all Sectors) Services & Financial Services Tourism (if well conducted), Resorts, Hotels, Restaurants Production of Building Materials, Textiles & Shoes, Medical Devices, etc....in New Sectors Maritime Infrastructure (Marinas) Cable Technologies, Production of Higher Value *DIHA-Evaluation 5

6 Albania - Economic Development Growth Rate Development in %

7 Albania - Economic Development Inflation Rate Development in %

8 Main Exports 2016 Others 32% Salt, Sulphure, Cement & Stones 3% Ores, Slag & Ashes 5% Iron & Steel 6% Minerals & Fuels 11% Textiles (Clothing & Apparel) 21% Footwear, Gaiters & Parts 22% 8

9 Main Imports 2016 Others 49% Pharmaceuticals 4% Plastics 4% Textiles (Clothing & Apparel) 5% Vehicles 7% Electrical Devices 7% Iron & Steel 8% Minerals & Fuels 8% Heavy Machinery, Boilers, Appli ances 8% 9

10 Albania - Taxes and Labor Costs Taxes applied on Corporates and Individuals Standard Corporate Income Tax: 15 % For SMEs (turnover 2-8 Mio. ALL/ EUR 7.5 %, below 2 Mio ALL not less than ALL) Personal Income Tax (0 %, 13%, 23%) < ALL: 0 %, ALL: 13 % of the amount over ALL 30,000 >130,001 ALL : 13, % of the amount over ALL 130,000 Withholding Taxes on cross border payments (standard rate 15 %) dividends, profit distribution, interest, royalties, rents, etc. Standard tax for capital gains of 15 % Social and Health Securities Contribution Social Contribution (for employees working more than 87 hours per month): 24.5 %, Employer: 15%, Employee: 9.5 % Health Contributions: 3.4%, Employer: 1.7%, Employee: 1.7% Low Labor Costs and Young Staff Minimum Salary: Average Salary (Private Sector): 160 EUR/per month 264 EUR/per month 10

11 Albania - Tax Incentives and more NO VAT applied on import of machineries and equipment used on investments worth more than ALL 50 Million (EUR ) NO VAT applied on medicines and health services, Facilitated VAT reimbursement procedures for exporters NO Excise applied on import of fuel used for the needs of oil producing companies, if they fulfil the conditions imposed by the Instructions in place. Tax reliefs applied on technology and economic development zones (Spitalla, Kopliku and Vlora) Double Tax Treaties to avoid double Taxation ( 40 countries) 11

12 Albania - Legislation & Licensing Company Registration: One-Stop-Shop Licencing: Simplification Law on Concessions and PPPs (2013) Facilitation of concessions and PPPs. Equality of treatment of bidders. Law on Public Procurement Unlimited pool of companies to tender for work, services and goods. 12

13 Initial Registration Economic Subjects that have to register in the National Business Center in Albania (QKB): Natural person that carry out commercial activity Simple Partnership is regulated by the Civil Code Article Commercial Companies General partnership, Limited partnership, Limited liability company, Joint-Stock Company Branches and Representative Offices of foreign companies Savings and Credit Companies and Unions Mutual aid and cooperation companies Agricultural Cooperation Companies Any other subject for which is foreseen the obligation to register based on the Albanian legislation 13

14 Albania - Foreign Investments & Real Estate Law on Foreign Investments Removal of prior authorization from the government Opening of all sectors to FDI Removal of all share limitations (100 % foreign ownership possible) Thus: FDI benefits equal and imparial treatment and is protected Priority of International Treaties Bilaterial Treaties with most countries In case of conflict: Treaties Provisions have priority over domestic law Real Estate Foreigners as persons cannot acquire real estate, companies yes Foreigners can only buy residential units, no land Symbolic Tariff of 1 EUR leasing contract, when renting goverment property. 14

15 Albania - TEDA`s Technology and Economic Development Zone. It is a free zone combined with industrial park. These zones will benefit from tax reliefs and exploit additional supporting measures. 15

16 TEDAs - Main Incentives Developers and users are exempted from 50 % of the profit tax rate (currently at a rate of 15 percent) for a period of 5 years. For developers that invest in the area, within 3 years of commencement of work or the investor that shall invest in the area within 3 years of commencement of the economic activity in the area, the annual capital expenses shall be 20% deductible, regardless of the sum of depreciation, pursuant to the law on profit tax, during a period of 2 years. Goods entering in Albania are exempted from custom duties and VAT A developer s project is exempted from infrastructure taxes 16

17 TEDAs - Main Incentives Wages and social costs are 150 % deductible for the first year, and new expenses for wages and social costs compared to the previous year are 150 % deductible for the subsequent years. Buildings constructed in TEDA are exempted from real estate taxes for a period of 5 years and from tax for transfer of ownership. Capital expenses are 20 percent deductible during a period of 2 years if developers and users invest in TEDA within 3 years of its operation. Training costs and Research and Development (R&D) costs are doubly deductible for a period of 10 years. 17

18 FDI in Albania in % by countries % 25% 21% 20% 15% 10% 14% 13% 11% 9% 8% 5% 0% 18

19 FDI in Albania by sectors in % % 20% 15% 25% 17% 12% 12% 11% 23% 10% 5% 0% 19

20 FDI Inward Stock in EUR million 20

21 DIHA - Main Investors and Members 21

22 Main German Investments in Albania - sectors Telecommunications Financial Services Construction Materials Passenger Transport Passenger Ferry Operations Cable Harnesses Automotive Spare Parts Retail Market Research Engineering Offices Real Estate Transport Stevedoring & Cargo Transport Postal Services Textile Production Drugstore Retail Geological Measures Production of Industrial Gaz 22

23 International Treaties & Memberships June 2014 EU-Candidate April 2009 NATO-Member April 2006 Stabilization & Association Treaty (SAA) with EU Sept WTO Member Free Trade Treaty with the EU, EFTA-States and Turkey CEFTA Member SECI (Southeast European Cooperative Initiative) BSEC (Black Sea Economic Co-Operation) 23

24 Germany - Albania Investment Protection Law in force since 1995 Treaty to avoid Double Taxation with Germany in force since 2012 DIHA representative of German Business since October 2008 with ca. 85 Members registered 24

25 Imports and Exports from Germany in EUR 450,000, ,000, ,000, ,000, ,000, ,000,000 Imports Export 150,000, ,000,000 50,000,

26 DIHA Output Market information & studies Address research Several Publications Business partner search Advertisement Delegation trips Recruitment Service Consulting Service Vocational Education 26

27 DIHA Output Representations of German trade fair market: Messe München (Munich Fairs) Kölnmesse (Cologne Fairs) Spielwarenmesse Nürnberg (Nuernberg toys/games fair) Plus: SES - Senior Expert Service 27

28 ALBANIA IN FIGURES Impressum: 2017 DIHA Deutsche Industrie- und Handelsvereinigung in Albanien Rruga Skenderbej 4/7 Tirana Albanien Tel: +355 (0) info@diha.al Web: