Avoidance of Double Taxation: Government Approves Fiscal Agreements with Germany and Lithuania

The Council of Ministers approved a series of draft laws and decisions during its latest meeting concerning fiscal agreements with Germany and Lithuania, the administration of confiscated properties, environmental protection, the development of the mountain economy, reconstruction, and the criteria for awarding the Public Order Service Medal.

One of the approved draft laws concerns the ratification of the protocol amending the agreement of April 6, 2010, between the Republic of Albania and the Federal Republic of Germany on the avoidance of double taxation and tax evasion with respect to taxes on income and capital, ratified by Law No. 10 287, dated June 10, 2010.

The government also approved the draft law “On the ratification of the agreement between the Council of Ministers of the Republic of Albania and the Government of the Republic of Lithuania on the elimination of double taxation with respect to taxes on income and capital and the prevention and avoidance of tax evasion, as well as its protocol.”

The meeting also approved the draft law “On some amendments and additions to Law No. 66/2023,” “On the administration of confiscated properties built without permits, with the aim of using them for public interest or social housing, as well as mitigating the resulting social consequences.”

In the field of environmental protection, the Council of Ministers approved the list of activities considered hazardous to the environment.

It also approved the decision “On the approval of the criteria used to assess potential threats and determine environmental damage.”

Another decision provides for several amendments and additions to Council of Ministers Decision No. 716, dated November 26, 2025, “On the designation of certain priority areas for the development of the mountain economy in the Municipality of Shijak.”

The Council of Ministers also approved several amendments to Decision No. 181, dated March 30, 2022, “On the use of the reconstruction fund to finance the reinforcement of individual housing units and housing units in apartment buildings in the municipalities of Tirana, Durrës, Shijak, Lezhë and Krujë,” as amended.

Finally, the government approved the decision “On determining the criteria for awarding the Public Order Service Medal.”

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