On 18.03.2026, Instruction No. 9, dated 12.03.2026, was published in the Official Gazette, introducing several important changes in the implementation of Personal Income Tax, as well as new rules affecting foreign artists, sponsorships, self-employed individuals, and employment relationships.
What does the Instruction introduce?
🎭 Special tax status for foreign artists
Non-resident artists are not considered tax residents in the Republic of Albania for a period of 24 months, regardless of the number of days of stay. This period does not restart in case of exit and re-entry into the country. After its completion, the general rules on tax residency apply.
✔ Limited tax exemption for sponsorships
Income derived from sponsorships is exempt from Personal Income Tax only within the legal limits.
➡️ Any amount exceeding this limit is treated as taxable.
➡️ Full documentation is required (contract, proof of payment, confirmation from the sponsor).
➡️ In the absence of proper documentation, the entire amount is considered taxable.
✔ Self-Employed Status Declaration
Self-employed individuals may declare that they are not in an employment relationship.
However, the tax administration has the right to verify and reclassify the income as employment income if tax avoidance is identified.
✔️ Multiple employment
Where an individual has more than one job and one of them is in the public administration, the personal status declaration must be submitted to the public employer for the purpose of monthly deductions.
✔️ Voluntary pension contributions
Employee contributions are deductible from taxable income (up to the national minimum wage threshold).Employer contributions are not considered income for the employee.
Supporting documentation and an annual certificate from the pension fund are required.
