AGRICULTURE SECTOR

Albania with its geographical position, natural resources, relief and climate offers all the possibilities to become a potential exporter in European markets. It has a population of about 2.87 million inhabitants. One third of the employees is in the agricultural sector. Albania is rich in water resources, with abundant amounts of water covering 65% of the entire area of 43,900 km2.

Agriculture is one of the most dominant sectors of the economy with a high development potential, constituting the main source of income and employment in the country.

The contribution of the Agriculture sector to GDP for 2020 is 18.39%. During 2020 there is an increasing trend of agricultural production. Vegetable production in 2020, compared to 2019 has increased by 2.99%. The highest level of vegetable production is in the regions of Fier, Berat and Tirana.

An increase is observed in the production of aromatic, medicinal plants and cooking spices. Production of aromatic, medicinal plants and cooking spices in 2020 amounts to 14,400 tons. Also other products show a positive trend of production.

Aquaculture has seen rapid growth as a promising sector. During 2019, about 15,011 tons of fish were caught while during 2020 this amount was increased to 16,892 tons for all categories.

Agrotourism as a subsector, is also a strong point of the economy, aiming not only at developing the local economy through diversification of the activities on farms, but also at welcoming tourists, with the added interest of getting to know Albania and enjoying the typical products of the area. Albania offers fiscal facilities for the agrotourism entities like % profit tax; VAT 6%, exemption form the infrastructure impact tax.

Agricultural exports have increased by 9.7% in 2020 compared to 2019. The most significant increase has the chapter of agriculture with +14.3%; fishery with +12.8%; agro industry with + 4.9%.

6% VAT

for accommodation facilities certified as “agro-tourism subject"

5% INCOME TAX

for agrotourism subjects

0%TAX OF IMPACT

on infrastructure for agrotourism subjects