Welcome to Albania, a gem of the Balkans, where beautiful landscapes meet rich cultural heritage. If you're a digital nomad, expat, or location-independent worker looking to make Albania your tax home, you've come to the right place. This guide will walk you through the necessary steps to obtain tax residency in Albania.
Step 1: Obtain a Residence Permit
First and foremost, you need to obtain a residence permit. This involves applying to the local immigration authorities. You'll need to provide various documents, including a valid passport, proof of accommodation in Albania, a criminal background check from your home country, and proof of sufficient financial means to support yourself during your stay. The permit is usually issued for one year and can be renewed.
Step 2: Register Your Address
Once you have your residence permit, the next step is to register your address with the local authorities. This involves visiting the municipal office in your area of residence and providing your residence permit along with proof of address, such as a rental contract or a property ownership document.
Step 3: Obtain a Personal Identification Number (NID)
You will need a Personal Identification Number (Numri i Identifikimit - NID) for tax purposes. This can be obtained from the General Directorate of Civil Status. You'll need to provide your residence permit and registered address to get your NID.
Step 4: Register with the Tax Authorities
With your NID in hand, you must register with the General Directorate of Taxation. This involves filling out the appropriate forms and providing the necessary documentation, including your NID, residence permit, and proof of address. Once registered, you will be assigned a Tax Identification Number (TIN).
Step 5: Declare Your Worldwide Income
As a tax resident of Albania, you are required to declare your worldwide income. This means you must report all income earned both within and outside of Albania. Filing is typically done annually, and you must ensure that you adhere to the deadlines set by the tax authorities.
Legal References
- Law No. 108/2013 'On Foreigners'
- Law No. 9920 'On Tax Procedures in the Republic of Albania'
- Instruction of the Minister of Finance No. 24, dated 02.09.2008
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