Albanian parliament approves “Mountain Package” to boost rural investment and tourism
Albania has taken a major step toward supporting agriculture and rural tourism with the approval of the “Mountain Package” last week in parliament and the green light for the Albanian Development Bank in yesterday’s session. These initiatives, aimed at stimulating investment in the country’s mountainous regions, were discussed by Prime Minister Edi Rama in a meeting with sector representatives in Kuçovë.
Why is this important: The “Mountain Package” provides tax incentives for rural businesses, particularly for Albanians in the diaspora who want to invest in family lands. Additionally, a €250 million loan fund with government-backed sovereign guarantees will facilitate access to low-interest agricultural loans. The government also plans to establish the Albanian Development Bank to finance projects that commercial banks typically avoid.
Context: Albania’s mountainous regions hold significant potential for economic development but have long struggled with bureaucratic hurdles, limited investment, and infrastructure challenges. The government’s latest initiative aims to remove these obstacles and encourage long-term growth.
Land ownership & investment: Many landowners in remote areas lack proper documentation, preventing them from legally developing their properties. The new law bypasses these issues by allowing local municipal councils to certify land ownership for investment purposes.
Tax incentives: The first 500 applicants to the “Mountain Package” will pay no taxes for 10 years and benefit from a reduced 6% VAT.
Low-interest agricultural loans: A €250 million fund, allocated in January, provides loans at a 2% interest rate, which is expected to boost agricultural expansion.
Albanian Development Bank: This newly established financial institution will support strategic investments in sectors overlooked by commercial banks.
What was said: Prime Minister Rama underscored the potential of mountain tourism, stating that within a few years, Albania’s rural regions will become the future of the tourism industry.
“When service quality in the mountains improves and visitors find five-star hospitality even in remote areas, tourism in Albania will explode,” Rama stated.
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