Agriculture is the main economic sector of Albania, contributing 20% to the gross domestic product.
The government provides financial support through the IPARD III programme, which provides EU funds totalling EUR 146 million over the period 2021-2027 for the development of rural areas and agri-food sectors in the candidate countries for the EU accession, as well as the gradual alignment with the rules of the Common Agricultural Policy.
Furthermore, the government encourages Albanian and foreign entrepreneurs to invest in agriculture thanks to a wide range of benefits: mild climate, high number of sunny days per year (300), large cultivable surfaces (560,000 hectares), soil fertility, abundant water resources.
Last but not least, tax benefits: among them, the VAT exemption on the supply of agricultural machinery and on the import of machinery and equipment to be used in the agri-food sector; the VAT rate reduced from 10% to 6% for certified agritourism activities; VAT reduced to 10% on the supply of chemical fertilizers, seeds and seedlings.
Certified agritourism facilities and agricultural cooperatives benefit from a reduced tax of 5% on profits.
Finally, agricultural land can be leased for a period of 10 to 99 years.
“Made in Albania” organic products
The country is committed to adapting the organic products industry “Made in Albania” to European standards. This was stated by the Minister of Agriculture and Rural Development, Anila Denaj, presenting the new bill “On organic production, labelling of organic products and their control”.
The new regulation is of particular importance for the sustainable development of Albanian agriculture and the achievement of the EU goal of certifying 25% of agricultural land as “organic” by 2030, Denaj added. The bill, in fact, aims to strengthen legal and control mechanisms at all stages of organic production, including packaging, labeling and marketing of products on the national and international market.
Albania exports about two tons of organic products per year, especially aromatic and medicinal plants, chestnuts, berries and extra virgin olive oil.
