Albania: Albania signs double tax treaty with UK

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Albania: Albania signs double tax treaty with UK

philippou.jpg

likaj.jpg

Eylem Philippou


Drilona Likaj

On March 26 2013, Albania and the UK signed a double tax treaty on income and capital. The treaty generally follows the OECD model convention.

The withholding tax at source for dividends is set at 5% if the beneficial owner is a company and holding at least 25% of the shares of the company paying the dividends or 15% (subject to aforementioned capital holding) of the gross amount of the dividends where those dividends are paid out of income (including gains) derived directly or indirectly from immovable property within the meaning of Article 6 on Immovable Property by an investment vehicle which distributes most of this income annually and whose income from such immovable property is exempted from tax. In all other cases dividends are taxed at 10%.

The withholding tax at interest is set at 6% and on royalties is set at 0%.

Gains derived from immovable property and from the alienation of shares, other than shares in which there is substantial and regular trading on a stock exchange, or comparable interests, deriving more than 50% of their value directly or indirectly from immovable property may be taxable in a state where the property is situated in.

The treaty also includes the articles on exchange of information, mutual agreement and assistance in collection of taxes as seen as in the OECD Model Convention.

The treaty shall come into force after the ratification procedures completed and ratification notices exchanged by each state and shall be applicable from:

In the case of UK;

  • In respect of income tax and capital gains tax, for any year of assessment beginning on or after April 6 next following the date on which the agreement enters into force; and

  • In respect of corporation tax, for any financial year beginning on or after April 1 next following the date on which this agreement enters into force.

In the case of Albania;

  • In respect of income derived or of capital owned on or after January 1 of the calendar year next following the year in which the agreement enters into force.

Eylem Philippou (eylem.philippou@eurofast.eu)
Eurofast Taxand, Cyprus

Drilona Likaj (drilona.likaj@eurofast.eu)

Eurofast Global, Tirana Office, Albania

Tel: +355 42 248 548

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Tax expert Craig Hillier agrees with the comparison of pillar two to using a sledgehammer to crack a nut
The amount is reported to be up 57% from the £5.6bn that the UK tax agency believes was underpaid in the previous year
The US president also unveiled a new 50% levy on copper imports; in other news, a UK wealth tax proposal has been criticised by the Institute for Fiscal Studies
Wim Wuyts, who had been head of the specialist tax network since 2017, is moving on to a new role with WTS’s Belgian member firm
MNEs are increasingly using algorithmic tools in TP. Sahasranshu Dash argues that data ethics should therefore plug directly into the TP design process
The Institute of Chartered Accountants in England and Wales also queried whether HMRC resources could be better spent scrutinising larger entities
Grant Thornton’s Austria tax head likens his practice to an escape room, shares his football coaching ambitions, and explains why tax is cool
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 EMEA Tax Awards
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 Asia-Pacific Tax Awards
The fates of pillars one and two hang in the balance after the US successfully threw its weight around in G7 and Canadian negotiations
Gift this article