Albanian parliament approves tax breaks for luxury hotels and strategic investments

TIRANA, JANUARY 31, 2025 – Albania’s Parliament has approved a two-year extension of tax exemptions for luxury hotels and postponed the deadline for strategic investment applications until December 2026.

The vote, which took place just after midnight, followed a lengthy nine-hour debate. Many lawmakers were absent, and the session was delayed as the speaker waited for a quorum. The vote began at 00:15 AM with members of the ruling party in attendance, while opposition seats remained largely empty. Only one opposition member voted with the government.

The draft law, which extends corporate income tax exemptions for luxury hotels, passed with 73 votes in favor, 1 against, and no abstentions. A separate draft law on strategic investments was also approved, receiving 68 votes in favor, 1 against, and 3 abstentions.

The new laws, proposed by the government, will allow businesses in the hotel industry that meet specific criteria to be exempt from corporate income tax for the next 10 years. The measures are expected to benefit both local operators and international hotel brands investing in Albania’s growing tourism sector. Critics have raised concerns, but the government argues that these initiatives will boost investment in key tourist areas.