Concerns Regarding Fiscal Predictability and Investor Confidence in Albania
The Foreign Investors Association of Albania (FIAA) expresses its concern regarding the proposed Fiscal Package 2027, particularly the proposed tax increases and their potential implications for Albania’s business and investment climate.
While recognizing the Government’s responsibility to pursue fiscal policies that support economic development and public financial stability, FIAA emphasizes that significant changes to the taxation framework should be grounded in sound economic analysis, meaningful consultation with the business community, and adequate time for businesses to assess their implications and prepare accordingly.
FIAA is particularly concerned about the accelerated introduction of these measures, without what it considers to be adequate consultation or sufficient advance notice for businesses and investors to adjust their financial and investment plans.
Fiscal policy plays a critical role in investment decisions, business competitiveness, and long-term planning. For foreign investors, stability, transparency, and predictability in the fiscal and regulatory framework are essential conditions for sustainable investment. Unexpected changes to tax rates and legislation can affect investment decisions, increase business uncertainty, and undermine confidence in the country’s long-term economic outlook.
These concerns are consistent with FIAA’s longstanding recommendations, including those outlined in its White Book and other policy documents, which highlight the need to address regulatory unpredictability, frequent and uncoordinated changes to tax legislation, inconsistent tax interpretations, delays in VAT reimbursements, and insufficient consultation with the business community.
At a time when Albania is seeking to strengthen its competitiveness, attract sustainable foreign investment, and advance its European integration, fiscal policy should support these objectives by providing businesses with a clear, consistent, and predictable framework for operating and investing.
FIAA therefore calls on the Government to reconsider the proposed measures and engage in meaningful dialogue with the business community. Any significant fiscal changes should be supported by comprehensive impact assessments, transparent consultation, and adequate transition periods.
Furthermore, FIAA considers it important that the Government provide a clear explanatory note outlining the rationale for the proposed package, the economic analysis underpinning its measures, their expected impact on businesses and the investment climate, and the intended duration of the proposed changes.
FIAA remains committed to constructive cooperation with the Government and relevant institutions to promote a competitive, transparent, and sustainable investment environment in Albania.
A predictable fiscal framework is essential not only for investor confidence, but also for Albania’s long-term economic competitiveness and its ability to attract and retain sustainable investment.
Foreign Investors Association of Albania (FIAA)
October 29th, 2026