“Vertigo Free Zone – Durrës Industrial Park” operates within the legal framework applicable to Technological and Economic Development Areas (TEDAs), as established by Law No. 9789, dated 19 July 2007, “On the Establishment and Functioning of Technological and Economic Development Areas,” as amended.
This industrial park is specifically designed to attract both foreign direct investment (FDI) and domestic capital in the sectors of logistics, processing, manufacturing, and international trade (import-export). Located in a prime logistical corridor and supported by state-of-the-art infrastructure, the park offers investors a comprehensive set of fiscal incentives and regulatory advantages, consistent with Albania’s TEDA regime.
Under applicable legislation, businesses that are formally licensed as “users” of a TEDA are eligible to benefit from the following financial incentives:
Corporate Income Tax (CIT) Reduction
- Licensed users are entitled to a 50% reduction in the standard Corporate Income Tax rate for a period of five (5) fiscal years, commencing from the date the competent authority approves their economic activity.
- The CIT relief applies only to activities carried out directly by TEDA users. Third-party contractors providing construction, installation, or supervisory services within the zone are not eligible for this exemption.
Accelerated Deduction of Capital Expenditures
- Users who undertake capital investment within three (3) years of commencing licensed operations in the zone may deduct 20% of annual capital expenditures as additional deductible expenses over a two-year period, irrespective of the depreciation schedule.
Zero-Rated VAT on Domestic Supply
- The supply of domestically sourced goods into the TEDA is treated as a zero-rated transaction for Value Added Tax (VAT) purposes, provided the goods are used solely for licensed economic activities within the zone and are delivered to either the zone’s developer or its licensed users.
- Supplies that are not used for such economic purposes (e.g., for final consumption) are excluded from the zero-rated VAT treatment.
VAT Exemption on Exported Goods
- Goods exported or re-exported from the TEDA to locations outside the customs territory of the Republic of Albania are exempt from VAT, in accordance with the Law on Value Added Tax and applicable customs legislation.
- Transfers of goods between TEDAs within national territory are considered intra-zone movements and are not subject to customs duties or VAT obligations.
Exemption from Real Property Tax
- Buildings and infrastructure constructed in accordance with the approved development plan are exempt from immovable property tax for a period of five (5) years, starting from the fiscal year in which the tax liability would otherwise be triggered.
Exemption from Real Estate Transfer Tax
- TEDA users who own immovable property within the zone and operate economic activities therein are exempt from the real estate transfer tax on transactions involving the transfer of ownership of such property.
Enhanced Deductibility of Payroll and Contributions
- 150% of payroll expenses, including employer-paid social and health insurance contributions, are recognized as deductible expenses during the first fiscal year of activity.
- In subsequent years, any incremental increase in wage expenses, relative to the prior fiscal year, may continue to be deducted at 150% of the increased value.
- These deductions apply only to employees formally listed on the company’s payroll and are calculated within each fiscal year (ending December 31).
Double Deduction for Training Expenses
- Employee training costs incurred by users within TEDAs are recognized as tax-deductible at 200% of their value, for a period of ten (10) consecutive fiscal years from the start of economic activity.
- Eligible expenses must be contractually substantiated and incurred through agreements between the TEDA user and a licensed training provider.
Double Deduction for R&D Expenditures
- Scientific research and development (R&D) expenses are similarly recognized as 200% deductible over a ten-year period from the commencement of business activity.
- Qualifying R&D expenses must be related to long-term innovation goals, such as product design, prototyping, and applied technological research, and not aimed at immediate profit generation.
“Vertigo Free Zone – Durrës Industrial Park” operates as a one-stop shop service center, where you can not only conduct your business activities but also receive essential support for your success. Tailored consultancy services are available to meet the specific needs of your business, provided by experienced professionals in the relevant fields.
Consultancy Services Include:
- Tax Consultancy: Professional advice on the interpretation and effective use of fiscal incentives, as well as solutions to any tax-related uncertainties;
- Financial and Business Consultancy: Support in financial planning, business sustainability analysis, and the preparation of development strategies;
- Operational Management Consultancy: Guidance on managing and improving operational processes;
- Business Strategy and Structuring Consultancy: Assistance in formulating business strategies and structuring the organization for growth and efficiency.
- Comprehensive legal consulting and assistance: Supporting the client from the company formation stage to legal representation before the competent authorities, ensuring efficient and timely management of any legal matter.