Government Presents Fiscal Package 2026, Aiming at Growth and a More Formal Economy

The Fiscal Package of 2026 consists of eight draft laws that are aligned with the 2025-2029 Government Program. It aims to promote long-term economic growth and establish a simpler, more transparent, and efficient fiscal structure. The package proposes no tax hikes and promotes entrepreneurship, priority sectors, and economic formalization.
This year, two key draft laws, the Fiscal Peace Agreement and the Write-Off of Tax and Customs Liabilities, mark the beginning of a new phase of cooperation with businesses. These laws correct declarations and facilitate the closure of old liabilities. However, they do not grant amnesty to entities under investigation or in criminal proceedings.
The Fiscal Peace Agreement, applicable from 2026 to 2028, permits enhanced regular declarations and a reduced 5% tax rate on taxable profit increases exceeding 18%. It also allows for the self-correction of financial statements from the previous three years using the same rate.
The tax and customs debt write-off scheme aims to clear accumulated arrears. Debts older than ten years will be completely erased, and liabilities between five and ten years old will be partially satisfied by paying 50% or 75% of the principal. The remainder, including fines and interest, will be forgiven. Debts between one and five years old require payment of the full principal, and all fines and interest are waived. Payment is permitted until December 31, 2026.
For the first time, the agricultural sector will receive a new VAT compensation mechanism in line with European trends. Every six months, farmers will receive compensation equal to 10% of the value of their agricultural and livestock sales invoices, paid directly by the Tax Administration. This new mechanism is expected to have a financial impact of 1.5 billion ALL in 2026, increasing to over 3 billion ALL per year beginning in 2027. It will promote local production, formalize the value chain, and raise farmer incomes.
Both citizens and corporations will be able to reevaluate real estate at a 5% tax rate, which is down from the current rate of 15%. This change will bring values closer to market prices and encourage formal transactions.
The package contains new measures to combat informality, particularly with regard to online activity. Businesses operating online must post identifying information on their websites; otherwise, AKEP may suspend their sites. Administrative penalties for unregistered activity will also increase to ensure fair treatment and reduce exploitation.
Another important component is reducing cash use. Businesses will be limited to cash transactions of up to 100,000 ALL, while sales to consumers may be conducted in cash up to 500,000 ALL. Above these amounts, bank or electronic payments will be required. By May 30, 2026, businesses in tourism and transport must ensure alternative electronic payment methods, and all other entities must do so by December 31, 2026.
To promote sports, culture, and research and development, the draft income tax law expands the categories eligible for triple-deductible sponsorship expense recognition up to 5% of pre-tax profit. This includes sports teams, federations, and medal-winning athletes, while sponsorship income is exempt from tax. For research and development, the profit limit eligible for sponsorship recognition increases from 3% to 5%.
Starting in 2026, families with children under 18 will receive a 48,000-lek deduction per child on their annual individual income declaration, which will significantly reduce their effective tax rate. This change is expected to have a financial impact of around 1.5 billion lek, providing direct support to household budgets.
Fiscal Package 2026 is a balanced, reform-oriented instrument designed to stimulate economic growth, strengthen formalization, support priority development sectors, empower entrepreneurs and citizens, modernize the tax administration, and align Albania further with European standards.