Employment taxes

• Income tax is progressive:
• 0% on monthly income up to ALL 40,000
• 13% on income between ALL 40,001–200,000
• 23% on income above ALL 200,000
• Employee contributions:
• 9.5% to Social Security
• 1.7% to health insurance
• Employer contributions (in case you’re curious): 15% for social security and 1.7% for health.

Leave policy

Albania gives you time to rest, recover, and enjoy life:

• Paid vacation: Minimum 20 working days per year.
• Sick leave: Covered partly by the employer, partly by social insurance.
• Maternity leave: Up to 365 days. 35 days before and 63 days after birth are mandatory.
• Paternity leave: Not officially regulated, but may be granted (especially in private companies).
• Parental leave: Mothers can transfer up to 63 days of unused maternity leave to fathers after the first 63 days postpartum.

Employment termination

Endings are part of the journey too:

• Notice periods depend on your length of service (typically from 2 weeks to 3 months).
• Termination must be in writing, with valid reasons such as redundancy, poor performance, or mutual agreement.
• Severance isn’t mandatory unless agreed by contract or in redundancy cases with long-term employees.

Hiring and contracts

• All contracts must be written and signed by both parties.
• Must include key details: job role, compensation, working hours, duration, etc.
• Contracts can be fixed-term (up to 5 years) or indefinite.

Payroll and salary payments

• Salaries are paid monthly, typically by the 5th of the following month.
• National minimum wage: ALL 40,000 (about €380) per month as of 2024.
• The employer deducts and remits taxes, social security, and health contributions.

Benefits

Mandatory:

• Health insurance
• Social security
• Paid leave

Optional:

• Meal allowances
• Transport coverage
• Private health insurance
• Bonuses and performance incentives

Monthly living cost (Tirana Edition)

Living in Albania’s capital is affordable and easy on your wallet:

• Rent: €300–€500 for a 1-bedroom apartment in the center
• Groceries: €150–€250/month
• Coffee: €1 (and it’s strong and good)
• Transport: €12/month for a public transport pass
• Internet: €15–€25/month

You can live comfortably with €700–€1,000/month, depending on your lifestyle.

How to get a local ID number (NIPT)

You’ll need an ID number (NIPT) for tax purposes and employment. Here’s how:

1. Register your residence with the local municipality (for remote workers too).
2. Apply for a unique personal identification number at the tax office.
3. Your employer or legal rep can help with this if you’re being hired locally.

Social security registration

• Your employer registers you with the Social Insurance Institute.
• If you’re self-employed or a freelancer, you must register yourself and make monthly contributions.

Banking

Popular banks include:

• Credins Bank
• BKT (Banka Kombëtare Tregtare)
• Raiffeisen Bank
• Intesa Sanpaolo

To open a bank account, you’ll need:

• A passport or a residence permit
• Local ID number (NIPT)
• Employment or rental contract

Housing and rental process

• Finding a place is relatively easy, thanks to Facebook groups, local agents, or property websites.
• Most apartments are furnished and come with flexible lease terms.
• Tenants have rights too: Landlords must give notice to evict and respect rental agreements.
• Deposits are usually 1–2 months’ rent.

Healthcare system

• Albania offers public healthcare, but many locals prefer private clinics for faster service.
• Public healthcare is covered if you’re employed and registered with Social Security.
• Private insurance is optional but affordable, and many employers offer it as a perk.

Driving and public transport

• Public transport in Tirana is cheap and straightforward.
• Monthly pass: ~ALL 1,200 (€10)
• Taxis are everywhere, but prices vary.
• If you drive: You can use your foreign license for up to one year; then, you’ll need to convert it.

Emergency and important contacts

• Emergency: 112
• Ambulance: 127
• Police: 129
• Fire: 128

Work permit and visa requirements

For EU/EEA citizens:

• No visa for entry, but you’ll need a residence and work permit to stay longer than 90 days.

For Non-EU citizens:

• Apply for a Type D visa (extended stay) before arrival.
• Then, apply for a residence permit once in Albania.
• Employers usually assist with the process.

The National Employment Service handles work permits. Processing time: 1–2 months.

Business culture and work norms

• Punctuality is important, but flexibility is also essential.
• The hierarchy remains strong, although younger companies are increasingly adopting flatter structures.
• Expect to build trust and personal relationships at work; it’s how business gets done.
• And yes, lunch breaks are still sacred.