Salaries, how much tax will Albanians pay in 2025? - Record level, 529 million euros additional to the budget in 10 years
Albanian citizens have paid 825 million euros in taxes on salaries and income generated from long-term rentals and those through the "Booking" and "AirBnB" platforms during 2025.
Official data from the Ministry of Finance show that the personal income tax item had the highest percentage increase among all other tax revenue items during the past year.
Specifically, personal income tax revenues for the period January-December 2025 were realized in the amount of 82.5 billion lek, 16.4 billion lek or 164 million euros more than a year ago, and 24.8% more than the period January-December 2024.
However, the government's planning was for around 17 million euros more to be collected from this tax.
According to official data from the Ministry of Finance, due to the fiscal policies pursued by the government over the years, this value has had a progressive increase year after year.
Specifically, if we analyze the last 10 years, personal income tax collections in 2020 are recorded at approximately 296 million euros, while year after year there has been a significant and gradual increase. Compared to 2025, the increase is recorded at 529 million euros, or approximately 178.6 percent in a decade.
According to the tax administration, the increase in income from insurance and TAP in 2025 shows that businesses are reflecting on formalization and responding to legal obligations.
The anti-informality campaign undertaken by the government regarding the under-declaration of salaries throughout 2025 appears to have had an impact on performance, which caused entrepreneurs to react by increasing the declaration of employee salary positions.
On the other hand, the establishment of reference salaries in tourism this year and in construction, which were considered the sectors with the highest informality in terms of employee declarations and under-declaration of salaries, seems to have significantly influenced the increase in payments declared by businesses in these sectors, which are considered to have the highest turnover, automatically bringing about an increase in this market and a reflection in the tax paid.
Over the last two years, a salary increase reform has been undertaken in the public administration, where the average salary exceeded 900 euros, causing the tax paid on the salary that employees receive to be higher.
Personal income tax revenues also include rental income, and tourism development has led to more properties being on the short-term rental market, thus bringing more income to citizens working through the AirBnb and Booking platforms and consequently more tax paid. This item also includes interest income, but the most important weight is that from salaries.
Support for women's entrepreneurship - Minister Ibrahimaj: 5% bonus on grants for women's startups
The Minister of Economy and Innovation, Delina Ibrahimaj, announces that the 2026 grant call for startups provides for a 5% bonus on the evaluation points......
Albania climbs in global economic freedom rankings/ The country leads the region and several important economies in Europe
Albania is ranked 46th in the world in terms of the index of economic freedom published by the Heritage Foundation. According to this report, our country has......
Ministers take oath before the President - 7 new members of the government cabinet officially start work
After receiving a vote of confidence from the Parliament the day before, the seven new cabinet ministers were sworn in on Friday before the President of the......
How did this 'turbulent' week end for the major currencies?
The US dollar, although it has not experienced significant fluctuations in value compared to the previous day, has closed this week negatively, being bought......
Global economy "dependent" on Hormuz - Around 25 billion USD worth of goods blocked in the strait
The US-Israeli military attack on Iran has disrupted commercial shipping in the Persian Gulf, a key source of fuel and petroleum products. The disruption......
Italy cannot stop price increases - Gasoline has exceeded 1.7 euros per liter, while oil is at March 2024 levels
Fuel prices in Italy have continued to rise. The average price of gasoline reached 1,724 euros per liter in cities, compared to 1,672 euros on Monday, and......
Which European country is most affected by the conflict? - Greece, Cyprus, Poland, Bulgaria, most affected by an energy crisis
The economic, fiscal, political and credit impacts of the war in the Middle East will depend on the duration and severity of the conflict, the extent to......
Kosovo goes to elections again - President Osmani decrees the dissolution of the Parliament
The President of Kosovo, Vjosa Osmani, has announced that she has issued a decree dissolving the Parliament, leading the country towards new elections. In a......
