Owing to many factors such as political instability, the banking crisis of 1997, the Kosovo war in 1999 and the generalized corruption, it is very difficult to conduct business in Albania. However, the Government of Fatos Nano tried to reverse this tendency since July 2002 by arresting many top-level political personalities.

The legal system does not offer sufficient protection for property rights. The violations of intellectual and industrial property are frequent, but not fought by officials. According to the Constitution, the judicial right is independent but political pressures and intimidations prevent it from functioning normally. Corruption is omnipresent in the businesses and the support of a local chief is a necessary condition for success.

Albania’s top income tax rate is 25 percent. The top corporate tax rate is 25 percent. Most prices are liberalized, except those of water, education, rail transportation and energy.

2004 Index of Economic Freedom

Source: Heritage Foundation, 2004