Greenhouse in Lushnja

Govt Encourages Investments in Agriculture

The Albanian government encourages local and foreign investors to use the potential offered by the agricultural sector to invest. The Investment Development Agency (AIDA) has drawn up a brochure listing the advantages of this sector in Albania.

Among the advantages listed by the AIDA is the typical Mediterranean climate with mild, wet winters and sunny summers; different microclimates, suitable for the cultivation of many products; up to 300 sunny days per year; fertile land; abundant water resources as well as about 560,000 hectares of arable land.

Also, tax exemptions that the government has made for this sector are among the main advantages. As is the value-added tax (VAT) exemption for the supply of agricultural machinery. Exemption from VAT on the import of machinery and equipment to realize investments in the agribusiness sector. Reduction of VAT for facilities certified as agro-tourism, for which a rate of 6% is applied. A reduced VAT rate of 10% applies to the supply of agricultural inputs, which includes chemical fertilizers, pesticides, seeds, and seedlings, excluding hormones.

Likewise, the reduced profit tax of 5% that applies to certified taxpayers such as agro-tourism entities is also listed as an advantage. As well as the reduced profit tax for Agricultural Cooperative Societies of 5%. Another advantage is the lease for agricultural land from 10 to 99 years.

On the other hand, the support of this sector through the national support scheme and the IPARD program are mentioned as advantages.

Agriculture accounts for 20% of the country's Gross Domestic Product, making it the most important sector in the economy.