US Company Formation from Albania (2026): US LLC or C-Corp, Albania's 0% Self-Employed Rate Until 2029, the Single-Client Rule and No US Treaty

Albania's tax system has made headlines twice in recent years. From 2024, the new Income Tax Law (Law 29/2023) set a 0% rate for self-employed individuals and small businesses with annual gross income up to ALL 14 million, guaranteed until the end of 2029. At the same time, it excluded a list of professions from that 0%, which led to protests from the lawyers, doctors, engineers and consultants affected. Meanwhile Tirana's developer and outsourcing community keeps growing, foreign remote workers have discovered the city, and the Albanian diaspora in New York, Michigan and Massachusetts keeps strong business links home.

A US company can be formed from Albania entirely remotely. Before forming one, an Albanian freelancer should know how the 0% regime applies to them, how the law's single-client rule works, and what the missing US–Albania treaty means. This guide covers each, then compares US LLC formation and US C-Corp formation.

In short: Albanian citizens and residents can own 100% of a US LLC or C-Corporation, formed remotely. Albania taxes residents on worldwide income. A self-employed individual or small business with gross income up to ALL 14 million pays 0% profit or income tax until 31 December 2029, unless the activity is on the government's list of excluded professions, which pay 15% up to that threshold. Above it the rate is 23%. A self-employed person working for a single client can be reclassified as an employee, with an exception where all services are provided to non-residents without a permanent establishment in Albania. Dividends are taxed at 8%. There is no US–Albania income tax treaty, so US corporate dividends carry 30% withholding. With UCB, a Wyoming LLC with EIN is $249 and a Delaware corporation with EIN is $358, all-in.

Who can form a US company from Albania

US states do not limit ownership by nationality or residence. An Albanian citizen in Tirana, Durrës or Shkodër, a foreigner living in Albania, or an Albanian shpk can own a US company in full, and one owner can be its only manager or director. You will not need a US visa, SSN, US address or trip. The company needs a registered agent in its state, included for the first year in every UCB formation (see registered agent explained), and an EIN, issued by the IRS without an SSN or ITIN (see EIN for non-residents).

For identity, use your passport. The Albanian ID card is not accepted by US banks on its own. For proof of address, an OSHEE electricity bill, a water utility bill or a bank statement works, with an English translation. If an Albanian company will own the US company, have its NIPT and its extract from the National Business Center (QKB) ready.

Albania's rules that matter

The 0% rate and the excluded professions

Under Law 29/2023, a self-employed individual (a person registered with a NIPT) or a small business with annual gross income up to ALL 14 million pays 0% on profits until 31 December 2029. Between ALL 14 million and the higher bands, 23% applies.

A Council of Ministers decision lists professions excluded from the 0% rate. Professionals on the list, such as lawyers, notaries, doctors, engineers, architects, accountants and certain consultants, pay 15% on income up to ALL 14 million rather than 0%. Whether software development, design or digital marketing falls on the list depends on how the activity is registered, and the list and its interpretation have changed. Check your activity code with your accountant.

The single-client rule

Albania's income tax law also targets disguised employment. A self-employed person who works for a single client in conditions resembling employment can be reclassified as that client's employee, with income tax and social contributions charged as on a salary. The law contains an exception that matters to people with foreign clients: it does not apply where the individual provides services exclusively to non-resident individuals or entities without a permanent establishment in Albania.

For a freelancer whose clients are all abroad, the exception is helpful. For a freelancer who invoices their own US company, run from Albania, the question becomes whether that company has a permanent establishment in Albania. Discuss it with your accountant before you set up the flow.

Worldwide income, dividends and no treaty

Albanian residents are taxed on worldwide income. Dividends are taxed at 8%, and interest and royalties at 15%. Foreign tax can be credited up to the Albanian tax on the same income.

There is no income tax treaty between the USA and Albania, so US domestic withholding applies:

• 30% on dividends from a US corporation.
• 30% on royalties.
• 30% on related-party interest.

US LLC or Albanian self-employment?

For an Albanian freelancer within the ALL 14 million limit and not on the excluded list, the 0% regime is hard to beat. A US LLC does not change where the work is done, so the income for your work in Albania is still Albanian income. To keep the 0% rate, your Albanian self-employment must be the one earning it.

The arrangement that usually works is:

• The US LLC contracts with US clients and receives payment.
• Your Albanian self-employment invoices the LLC (or the clients directly) for your work.
• The LLC keeps only what it needs for its own US costs.

A US company is worth having in this arrangement when clients require a US vendor, when you sell a product globally, or when you need US payment processing.

US LLC formation from Albania

US tax treatment

The IRS treats a single-member LLC with a non-resident owner as part of the owner, not as a separate taxpayer. If the work is done in Albania and nobody in the USA works for the LLC or signs contracts for it, its income is generally not connected with a US trade or business, and no US income tax is due (see effectively connected income explained). There is no corporate dividend, so the missing treaty does not matter for distributions. The LLC must file Form 5472 with a pro forma Form 1120 every year, and missing it costs $25,000 (see Form 5472 explained).

A lek example

These are illustrative figures, not a client case, at ALL 92 to the dollar.

Erion is a React developer in Tirana with four US clients. Two of them insist on a US vendor, so he forms a Wyoming LLC. The LLC bills those two clients US$60,000 a year and passes US$57,000 to his Albanian self-employment for the work. He invoices his other two clients, both US companies with no presence in Albania, directly from his NIPT.

His Albanian gross income is about US$110,000, roughly ALL 10.1 million, under the ALL 14 million threshold. His accountant confirms that software development under his registered activity is not on the excluded list, so he pays 0% income tax, along with his social and health contributions as a self-employed person. Because all his clients and the LLC are non-residents without a permanent establishment in Albania, the single-client rule does not reclassify him.

In the USA, the LLC files Form 5472 and a pro forma 1120 and owes no income tax.

US C-Corp formation from Albania

US tax treatment

A C-Corporation pays federal tax of 21% on its profits, plus state tax where it does business, and files Form 1120 and Form 5472 every year (see the 21% corporate tax explained and the C-Corp guide for non-residents). With no treaty, dividends to Albania are withheld at 30%, and Albania then taxes them at 8% with a credit for the US withholding. Corporate profit paid out to Albania bears about 44.7% in US federal tax.

When it fits

• Start-ups raising investment. Investors require a Delaware C-Corporation. The Albanian team can be in an Albanian shpk subsidiary paid for development, and a small one may itself benefit from the 0% small business rate (see raising US investment as a foreign founder).
• An Albanian company with a US operation, such as a tourism or food export business with US staff or a US warehouse. The US corporation pays US tax on its US profit and reinvests. See US subsidiary for a foreign company.
• Diaspora partnerships with US-resident relatives, in a business operating in the USA.

The diaspora

Albanian Americans run restaurants, construction and real estate businesses across New York, New Jersey, Michigan and Massachusetts, often with relatives in Albania or Kosovo as partners. When US citizens or green card holders are among the owners:

• a multi-member LLC is a partnership filing Form 1065;
• the US owners pay US tax on their shares;
• the Albanian partner's share of the US business income is subject to US withholding;
• the business must be formed or registered in the state where it operates.

See single-member vs multi-member LLC and New York LLC for non-residents.

Foreign residents in Albania

Many nationalities can stay in Albania for long periods, and Albania offers residence permits for remote workers. A foreigner who becomes Albanian tax resident (183 days or more, or a permanent home in Albania) is taxed in Albania on worldwide income. They may still be taxable at home. US citizens are always taxable in the USA.

Which state

• Wyoming or New Mexico for a contracting LLC run from Albania.
• Delaware for a corporation raising investment.
• New York, New Jersey or Michigan for diaspora businesses operating there.

See best state for non-residents and the state selector.

What it costs

UCB's formation prices include state fees and the first year of registered agent service:

• A Wyoming LLC with EIN costs $249, or $348 with a US bank account application.
• A Delaware corporation with EIN costs $358.
• A New York LLC with EIN costs $374.

A Wyoming LLC costs $121 a year to keep active, or $421 including the annual federal return. A US business address with your own suite number is $60 a year. See what a US LLC costs every year.

Banking

US banks and fintechs generally accept Albanian owners, after standard due diligence. What helps:

• A specific business description.
• An English website.
• Matching documents.
• A US business address with your own suite number.

Transfers to Albanian banks such as Raiffeisen, Credins or BKT are ordinary foreign-currency wires. Keep invoices and the LLC's records for the bank and for your accountant. See US business bank accounts for non-residents, why banks reject non-resident applications and Stripe for non-residents.

Common mistakes

• Letting the US LLC keep the income, so it never passes through your 0% Albanian self-employment.
• Assuming your profession qualifies for 0% without checking the excluded list.
• Invoicing your own US company without considering the single-client rule and permanent establishment.
• Paying dividends from a US corporation to Albania, at 30% with no treaty.
• Missing Form 5472 in a year when no US tax was due.

Frequently asked questions

Can an Albanian citizen own 100% of a US company? Yes, without visiting the USA or holding a US visa.

Does the 0% rate apply to income through my US LLC? The 0% rate applies to Albanian self-employed individuals and small businesses up to ALL 14 million of gross income, until 2029, unless the activity is excluded. Income for your work in Albania should be earned by your Albanian self-employment for the rate to apply.

Is there a US–Albania tax treaty? No. US dividends, royalties and related-party interest paid to Albania are withheld at 30%.

Does my US LLC pay US tax? Not if it has no US office, staff or agents. It files Form 5472 and a pro forma 1120 every year.

What is the single-client rule? A self-employed person working for one client like an employee can be reclassified as that client's employee. Services provided exclusively to non-residents without an Albanian permanent establishment are excepted.

How UCB can help

We handle US company formation from Albania remotely: the state filing, EIN, registered agent, US business address and bank application. Each year we file the federal return through our US tax filing service. Your Albanian accountant handles your NIPT and tax filings, and we supply the US records they need. See our formation, EIN and bank account package and the Central and Eastern Europe guide.

Setting up a US company from Albania? WhatsApp us at +1 315 961 2956 or email enquiries@ucbsolutions.com.