One Albania, Twelve Taxation levels: Why Local Tax Burdens are not Equal?
Below, we compare the trend of the tax burden per resident in Albania between 2023 and 2024, based on data from the counties, structuring the analysis by the absolute and percentage change in the tax burden per resident in each county.
In 2024, the local tax burden per resident has significantly increased in most counties, with the highest increases seen in Saranda (+87.9%) and Tirana (+33.7%), reflecting a deepening fiscal inequality. While counties such as Gjirokastër and Berat have seen decreases of -4.0% and -15.2%, respectively, this highlights an uncoordinated distribution of the tax burden, which could lead to tensions in territorial justice and public service efficiency. Large increases in certain counties raise questions about the justification and fairness of the local tax policy.
📊 Local Tax Burden per Resident by County (2023–2024)
| County | 2023 (Lek/resident) | 2024 (Lek/resident) | Absolute Change | Percentage Change |
| Tirana | 465,992 | 622,956.45 | +156,964 | +33.7% |
| Gjirokastër | 158,801 | 152,388.92 | -6,412 | -4.0% |
| Vlorë | 126,466 | 166,011.70 | +39,546 | +31.3% |
| Lezhë | 128,846 | 158,154.56 | +29,309 | +22.8% |
| Durrës | 127,826 | 179,827.70 | +52,002 | +40.7% |
| Saranda | 107,845 | 202,655.55 | +94,810 | +87.9% |
| Berat | 118,708 | 100,661.73 | -18,046 | -15.2% |
| Fier | 75,362 | 94,840.98 | +19,479 | +25.8% |
| Korçë | 90,282 | 110,691.93 | +20,410 | +22.6% |
| Elbasan | 87,813 | 104,594.42 | +16,781 | +19.1% |
| Shkodër | 83,127 | 112,402.77 | +29,276 | +35.2% |
| Kukës | 74,847 | 99,592.49 | +24,745 | +33.1% |
| Dibër | 69,367 | 73,708.26 | +4,341 | +6.3% |
🧾 Local Tax Burden per Resident by County (2024)
| County | Local Tax Burden (2024) | Main Issues |
| Saranda | 35,671 Lek | High taxes with no differentiation between tourists and residents; lack of seasonal taxation |
| Tirana | 28,181 Lek | Tax increases not directly linked to improved public services |
| Vlorë | 22,755 Lek | Real estate and uncontrolled tourism → tax burden for areas with regular populations |
| Durrës | 17,778 Lek | Taxes that do not reflect the distinction between local residents and tourism or construction industries |
| Gjirokastër | 13,441 Lek | Cultural heritage as a public asset → burden on residents for maintenance without additional support |
General Trend and Fiscal Polarization
| Parameter | Assessment |
| Average Increase | Almost all counties experience an increase |
| High Increase Counties | Tirana, Saranda, Durrës (33%–88%) |
| Decrease Counties | Berat, Gjirokastër (-4% to -15%) |
| Extremes | Tirana with the highest absolute burden and Saranda with the highest percentage increase |
Data shows a pronounced fiscal polarization, where urban and tourist regions generate much higher per capita revenues through taxes, while northeastern counties and those with slower development remain at the bottom of the rankings.
Main Causes of the Increase in Tax Burden per Resident
| County | Possible Causes |
| Tirana | Increase in economic activities, higher formalization, larger tax base |
| Saranda | Seasonal tourism, real estate investments, lack of differentiation for residents |
| Durrës | Combined economy: tourism, port, construction – increased pressure on urban infrastructure |
Regions with accelerated economic development have faced unbalanced fiscal increases, where the burden is often borne by local residents even for services provided to visitors or seasonal businesses.
Impact of Consumption Taxes: The Regressive Role of VAT
VAT per resident: 34,201 Lek/year (~2,850 Lek/month)
Regressive Impact: Heavier on the poor and counties with lower incomes
Most Affected Counties: Kukës, Dibër – low incomes but tax burden similar to wealthier counties
VAT is applied uniformly but impacts those who spend a higher proportion of their income, highlighting economic inequalities.
Local Tax Burden per Resident and Fiscal Justice
From the table, horizontal inequalities between counties are highlighted, where tourist areas (Saranda, Vlorë, Durrës) have a high burden due to uniform taxes, while less developed areas (Dibër, Kukës) suffer from low revenue collection and poor services. This underscores the need to review fiscal decentralization policies, with an emphasis on incorporating seasonal components, functional tax burden distribution, and the use of conditional transfers from the central government.
Albania experiences a stark fiscal divide between high and low economic development areas. Current trends risk deepening territorial gaps and disproportionately burdening citizens. Future policies should aim for greater horizontal equity, fair and socially sensitive taxation, and improved local governance capacity to effectively manage public funds. For more detailed and extensive information and analysis on the tax burden in Albania and the Western Balkans for 2024, we invite you to visit: ALTAX
👉 Local Tax Burden in Albania and the Western Balkans 2024 – Fiscal Freedom 2025 (in Albanian)
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