Albanian Government approves legislation to boost development of mountainous areas
The Albanian government has approved a new draft law, known as the “Mountain Package,” aimed at promoting sustainable economic development in the country’s mountainous regions. The legislation introduces measures to transfer state land to private ownership for a symbolic fee of €1, provided that beneficiaries commit to specific development projects.
Why is this important: The legislation aims to revitalize mountainous regions that have lagged economically compared to urban and coastal areas. It introduces tax and fiscal incentives for up to 500 beneficiaries who meet the law’s requirements, helping to attract investments, create jobs, and formalize land ownership for long-term users of these properties.
How it works: The law outlines criteria for designating certain areas as “priority development zones” and allows individuals or entities who have informally occupied state-owned land for at least 10 years to apply for ownership. After acquiring the land, owners must fulfill contractual obligations to develop the area within three years. Ownership is only granted once planned developments are completed.
Additionally, the law offers significant fiscal incentives, including exemptions from property taxes, VAT, and income tax, for up to 10 years. Development permits must be obtained for construction projects, which must commence within two years to remain valid.
Eligibility criteria: Eligible lands include state-owned assets such as forests, pastures, and meadows, but exclude public properties and those under military or legal restrictions. Applications are subject to verification by local municipalities and relevant agencies, with disputes resolved through a transparent public process.
Government objectives: The initiative, presented by Ministers Blendi Gonxhja and Arbjan Mazniku, seeks to address economic disparities between mountainous and urban areas. It also aims to formalize land ownership for individuals and businesses that have long used these lands but lack formal titles.
The government hopes the “Mountain Package” will stimulate economic activity in underdeveloped regions while ensuring sustainable land use and protecting natural ecosystems.
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