Law on TEDA Incentives:

Main TEDA Tirana Incentives

TEDA Tirana incentives encourage investors and developers to grow their businesses efficiently. The Albanian government created these incentives under Law 9789, dated 19.7.2007, “Economic Zones Creation and Development,” as amended. They reduce costs and promote sustainable development.

• Investors can deduct 120% of capital expenses over two years if they invest within three years of TEDA’s operation.
• Developers and users enjoy 50% profit tax exemption (currently 15%) for five years.
• Projects no longer pay infrastructure taxes, which reduces upfront costs.
• Buildings in TEDA remain exempt from real estate taxes for five years.
• When developers transfer buildings to TEDA, they avoid the transfer tax on real estate.
• TEDA allows businesses to deduct 150% of wages and social costs in the first year. New wage and social expenses compared to the previous year are also 150% deductible in following years.
• Companies can deduct training costs and Research & Development costs doubly for 10 years, which encourages staff development and innovation.
• Albanian goods entering TEDA do not pay VAT.
• Businesses can move goods between TEDA zones without paying custom duties or VAT.
• Goods entering Albania through TEDA avoid custom duties and VAT, streamlining operations.

In addition, investors can visit the official Albanian legislation page for more information: Law 9789 / Albanian Economic Zones.