Double taxation agreement between the UK and Albania set to boost property investor confidence
A first time comprehensive Double Taxation Agreement between the UK and Albania was signed in Tirana last month by Nicholas Cannon OBE, HM Ambassador to Albania and Albanian Finance Minister Ridvan Bode.
Double Taxation Agreements aim to eliminate duel taxation of income or gains arising in one territory and paid to residents of another territory. They work by dividing the tax rights each country claims by its domestic laws over the same income and gains.
There are more than 2,500 bilateral Double Taxation Treaties worldwide and the UK has the largest network of treaties, covering over 100 countries. This one is the first between these two European countries and represents an important step in the developing relationship between Albania and the United Kingdom.
Peter Walshe, Marketing Director for Lalzit Bay Resort and Spa, Albania comments,
“There is vast potential for growth and profit in the Balkan nation of Albania. The flagship British investor, Vodafone, has proved that in Albania it is possible to successfully provide services to the community and growth to the shareholders. Albania is undoubtedly in its infancy for foreign investment presenting an exciting opportunity to be involved in such a country with bags of potential.
“Indeed tourism is playing a vital role for the Albanian economy. Accounting for around 11% of the nation´s GDP, tourism brought in 1.2 billion euros in profit in 2011 and with tourist numbers rising to more than 4 million last year it is important that Albania adheres to its long term plan to capitalise on this growing popularity.”
The main cash injection into the economy generated by tourism is the wages of Albanian staff therefore any opportunity for local employment is very much welcome. Leisure and tourism enterprises such as Lalzit Bay Resort and Spa located on the Adriatic coast which prides itself on employing local Albanians wherever possible, demonstrates a commitment to genuine job creation within communities and can make a real difference to the economy.
This potential growth and profit in Albania is also set to translate into the property market. With more and more tourists flying in each year from all over the world to bask in the Balkan sunshine, the demand for accommodation over the summer period especially increases, with frontline properties in prime coastal locations becoming highly desirable.
Mr Walshe continues,
“Here at Lalzit Bay Resort and Spa we are offering savvy investors the opportunity to become part of a growth economy which saw a 1.6% increase in 2012 according to the Bank of Albania. Investors can purchase studios, one or two bedroom apartments or villas in a divine Adriatic location from as little as €30,000, a fraction of the cost of buying a home in one of the more established European resorts. Owners also have the benefit of a fabulous beachfront holiday resort to enjoy with family and friends or to rent out to holiday makers.”
In keeping with the country’s progressive approach, the resort is also planning on offering investments in its hotel units with discounts available for multiple purchases, affording investors several opportunities to be a part of Albania’s growing tourism economy. For more information on Lalzit Bay please contact 0845 125 8600 or visit www.lalzitbay.com.