LAW ON FOREIGN INVESTMENT
Based on article 16 of law no.7491, date 29.4.1991, "On main
constitutional clauses," proposed by the Council of Ministers,
THE PARLIAMENT OF THE REPUBLIC OF ALBANIA D E C I D E D: General
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:
physical person that is a citizen of a foreign country; or
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
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:
or immovable assets, tangible or intangible assets or any other
company, stock shares in a company and any form of participation
financial obligations or obligations in an activity that has
economic value and that is connected with an investment;
property, including literary, artistic, scientific, technological,
audio recording, invention, industrial designs, semiconductor
right given by law or contract, and every license or authorization
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.
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
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
The right to employ
A company with foreign investment, has the right to employ Albanian
and foreign citizens.
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.
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.
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.
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:
as a consequence of an investment disagreement;
made under a contract, including loan and interest payments
according to a loan agreement;
stemming from the sale or the payment of any or all part of
of shareholders' equity, resulting from the reduction of capital
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.
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
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.
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
Publication of laws
The Republic of Albania will publish all laws, rules and procedures
concerning foreign investment.
Coming into force
This law comes into force 15 days after publication in Fletorja
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