Legal Resources



Based on article 16 of law no.7491, date 29.4.1991, "On main constitutional clauses," proposed by the Council of Ministers,
For the purpose of this law:

1. "Territory" is understood to mean the territory under the sovereignty of the Republic of Albania, including water courses, sea zones and the continental shelf, upon which the Republic of Albania, in accordance with international norms, exercises its rights of legal sovereignty.

2. "Foreign investor" is understood to mean:

a)every physical person that is a citizen of a foreign country; or
b)every physical person that is a citizen of the Republic of Albania but who has always resided outside the country; or
c)every legal entity founded according to the laws of a foreign country, which directly or indirectly seeks to carry Out or is carrying out an investment in                the territory of the Republic of Albania in accordance with its law; or has                carried out investment in accordance with laws that have taken effect since                31.7.1990 to the present.

3. "Foreign investment" is understood to mean every kind of investment in the territory of the Republic of Albania under the direct or indirect ownership of the foreign investor, which consists of:
          a) movable or immovable assets, tangible or intangible assets or any other kind                 of possession;
          b) a company, stock shares in a company and any form of participation in a                 company;
c) loans, financial obligations or obligations in an activity that has economic value and that is connected with an investment;
d) intellectual property, including literary, artistic, scientific, technological,                 audio recording, invention, industrial designs, semiconductor mask works,                 know-how.
          e) every right given by law or contract, and every license or authorization given                 in accordance with the laws.

4. "Foreign dispute investment" is understood to mean every disagreement or pretense that is caused by a foreign investment or that is associated with one.

5. "Revenue" is understood to mean the amount of money that arises from or related to an investment, including profit, dividends, interest, recapitalization, management fees, technical assistance fees, or other fees or contributions in-kind.

                                                Article 2

                                        Authority and treatment

1. Foreign investment in the Republic of Albania is not subject to prior authorization. It is permitted and treated based on conditions not less favorable than those that apply to domestic investment in similar circumstances, excluding ownership of land,
which is regulated by a special law.

2. In all cases and at all times investments have equal and impartial treatment, and full security.

3. In all cases foreign investment is treated no less favorably than that secured by general norms, accepted by international law.

                                    Article 3

                                        The right to employ

A company with foreign investment, has the right to employ Albanian and foreign citizens.

                                            Article 4

                               Expropriation and Nationalization

Foreign investments will not be expropriated or nationalized neither directly nor indirectly and will not be subject to any measure or similar action, except for public purposes determined by law. Foreign investments will be treated in a non-discriminatory manner and paid immediately, in a fair and effective manner, and in accordance with due process of law.

                                     Article 5

                  Compensation for expropriation and nationalization

1. The compensation will be equivalent to the fair market value of the expropriated investors.

2. The compensation will be paid without delay and include interest at the commercial market rate from the date of the expropriation; the compensation is fully transferable and convertible at the market rate of exchange on the date of the

3. A foreign investor has the right to request an immediate review of an expropriated action or compensation, through the appropriate legal or administrative institutions, according to article 8 of this law.

                                   Article 6

                                 War and armed conflicts

Foreign investors, whose investments suffer losses due to war, armed conflicts, state of national emergency or other similar events, will be treated no less favorable than the treatment accorded to Albanian investors regarding measures adopted in
relation to such losses.

                                  Article 7


1. Foreign investors have the right to transfer out of the territory of the Republic of Albania all assets related to a foreign investment, including as follows:
          a) revenues
          b) compensation
          c) payments as a consequence of an investment disagreement;
          d) payments made under a contract, including loan and interest payments                 according to a loan agreement;
          e) revenues stemming from the sale or the payment of any or all part of an                 investment;
          f) return of shareholders' equity, resulting from the reduction of capital when                 the company has decreased its capital according
              to Albanian legislation.

2. Foreign investors will have the right to make transfers out the territory of the Republic of Albania to a freely convertible currency calculated at the prevailing market rate on the date of the transfer, with respect to spot transactions in the currency to be transferred.

3. The Republic of Albania may limit the right of transfer through the equal and nondiscriminatory manner of the laws of general application, including laws regarding the payment of taxes and the satisfaction of claims and court decisions.

                                    Article 8

                                      Dispute settlement

1. If a foreign investment dispute arises between a foreign investor and either an Albanian private party or an Albanian state enterprise or organization, which cannot be settled amicably, then a foreign investor may choose to submit the dispute for
resolution to any applicable, previously agreed upon dispute settlement procedure. If no dispute settlement procedure has been agreed upon, then a foreign investor may submit the dispute for resolution to an authorized court or arbitrator of the Republic of Albania, according to laws of Albania.

2. If a foreign investment dispute arises between a foreign investor and the state administration of the Republic of Albania, and this disagreement cannot be settled amicably, then a foreign investor may choose to submit the dispute for resolution to an authorized court or arbitrator of the Republic of Albania according to the laws of Albania. In cases when the dispute arises out of, or relates to expropriation, compensation for expropriation, discrimination or transfers according to article 7 of this law, then a foreign investor may submit the dispute for resolution and the Republic of Albania hereby consents to the submission thereof, to the International Center for Settlement of Investment Disputes ("Center"). established by the Convention on the Settlement of Investment Dispute between States and Citizens of Other States, approved in Washington. D.C., in March 1965.

3. Any award of international arbitration according to this article is final and binding on the parties to the dispute. The Republic of Albania must carry out, without delay, dispositions of any such award and provide for its enforcement within the territory of

                                      Article 9

                                         The status of this law

1. Law no.7549, date 4.8.1992 "On foreign investments" and all other clauses within laws or decisions of the Council of Ministers contrary to this law are repealed.

2. In the event that this law does not conform with any other international agreement or treaty ratified by the Parliament to which the Republic of Albania or the Government of Albania is member, the latter will prevail, to the extent that they provide greater rights or protection to a foreign investor than those provided by this law.

                                    Article 10

                                           National security

There is nothing in this law that will prevent the application by the Republic of Albania of measures necessary for preserving public order, satisfaction of international obligations of Albania relating to preservation and restoration of international peace or security, protection of its own national security or defense interests.

                                   Article 11

                                        Publication of laws

The Republic of Albania will publish all laws, rules and procedures concerning foreign investment.

                                  Article 12

                                        Coming into force

This law comes into force 15 days after publication in Fletorja Zyrtare.

Proclaimed with decree no.687, date 10.11.1993 of the President of the Republic of Albania, Sali Berisha.


Les ressortissants de chacune des Parties Contractantes ne pourront, sur le territoire de l'Autre, être expropriés de leurs biens ni privés, même temporairement, de la jouissance de leurs biens, que pour cause légalement reconnue d'utilité publique et contre remboursement de la valeur.


Les ressortissants de chacune des Parties Contractantes jouiront, sur le Territoire de l'Autre tout ce qui concerne la protection légale et judiciaire de leur personne et de leurs biens, du même traitement que les nationaux.


La présente Convention entrera en vigueur un mois après la date de l'échange des ratifications et aura la durée de deux ans. Si la Convention n'est pas dénoncée par l'une ou l'autre des Hautes Parties Cotractantes au moins six mois avant l'expiration de ladite période de deux ans, elle restera en vigueur jusq'à ce qu'elle soit dénoncée, en cas de dénonciation cette dénonciation ne devant produire ses effets qu'après l'expiration d'un délai de six mois.

La présente Convention sera ratifiée et les ratifications en seront échangées à Angora, aussitôt que faire se pourra.

En fois de quoi, les Plénipotentiaires respectifs ont signé la présente Convention et y ont apposé leurs sceaux.

Fait à double à Angora le 15 Décembre 1923




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