- Home
- Knowledge base
- Retiring to Albania from Germany: residence, pension and taxes (2026)
Retiring to Albania from Germany: residence, pension and taxes (2026)
Since Law 43/2025 a German pensioner needs no residence permit: EU citizens stay beyond 3 months with sufficient means, a health policy and a free online registration, and after 5 years gain permanent residence. The Deutsche Rentenversicherung pays the pension abroad, the social-security agreement in force since 1 December 2017 adds German and Albanian insurance periods together, and the 2010 tax treaty assigns a statutory pension of an Albanian resident to Albania alone - where in practice it goes untaxed under Art. 11/a, pending an official clarification. A retired couple pays about EUR 520 a month of fixed costs in Durres.
Data compiled by Fedir AlpatovUpdated
Staying beyond 90 days: the EU route first
Law 43/2025 added Article 33/1 to the law on foreigners: citizens of EU countries may live in Albania longer than three months without a residence permit, provided they have sufficient means and a health policy, and register online within three months of arrival for a registration certificate - an application checked within two working days, free of the service fee. After five years of continuous residence comes the right of permanent stay. No money figure for "sufficient means" is published; the pension statement is the natural evidence.
The older path still exists for those who want formal permit status: the national visa D for pensioners and the pensioner residence permit of Article 85, which requires pension income of at least 1,200,000 lek a year (about EUR 12,000), runs up to one year, renews annually and allows no work.
What happens to the German pension
The Deutsche Rentenversicherung pays pensions abroad, and the German-Albanian social security agreement has been in force since 1 December 2017. Under it, German and Albanian insurance periods are added together for the pension entitlement, nationality and place of residence play no role, and each country pays the pension earned under its own system itself. The agreement covers pension insurance - it does not bring Albania into European health-insurance coordination, so healthcare needs its own answer (below).
Before the move, tell the Rentenservice your new address and bank details and ask the DRV for a statement on your own case: what is paid, from which periods, and to which account - the country page for Albania and the DRV hotline handle exactly this.
Where the pension is taxed
The Germany-Albania double taxation agreement of 6 April 2010 settles it: pensions, payments of the statutory social insurance included, are taxable only in the state of residence. The treaty memorandum records that Albania refused to give the source state a taxing right, so once you are an Albanian tax resident, Germany steps back; the Finanzamt Neubrandenburg lists Albania among the countries where a German statutory pension is not taxed in Germany. The exception is civil-service pensions under Art. 19(2), which Germany keeps taxing.
On the Albanian side the picture is the same as for every foreign pensioner: the income tax law 29/2023 does not list pensions as a taxable category and Art. 11/a excludes compulsory-scheme income without saying "Albanian" - in practice the pension goes untaxed, while an official tax-administration clarification for foreign schemes is still pending. You become an Albanian tax resident with 183 days in the tax year, or with your permanent home or centre of vital interests here. A protocol to the treaty signed in June 2026 is not yet in force and does not mention Art. 18.
| Pension | Where it is taxed | Rule |
|---|---|---|
| Statutory pension (gesetzliche Rente), company and private pensions | Only in the state of residence - Albania, once you move | DBA Art. 18(1) |
| Civil-service pension (Beamtenversorgung) | Germany keeps the taxing right | DBA Art. 19(2) |
Sources · 1
- DATA-TAX-DE-0002Art. 18(1): pensions are taxed only in the state of residence. The Finanzamt Neubrandenburg lists Albania among the countries where a German statutory pension is not taxed in Germany. Civil-service pensions are different (Art. 19(2): Germany taxes them).Germany–Albania treaty: a statutory pension is taxed only in the country of residenceConfidence: HIGHPeriod: 2012–2026verified 2026-10-19Bundestag-Drucksache 17/6613: Abkommen zwischen Deutschland und Albanien zur Vermeidung der Doppelbesteuerung (6.4.2010), mit Denkschrift
The relocation checklist, in order
Six administrative steps carry the move; two have deadlines and one has a day count.
| # | Step | Detail |
|---|---|---|
| 1 | Online EU registration in Albania | Within 3 months of arrival: sufficient means plus a health policy; certificate checked in 2 working days, no fee |
| 2 | Tell the DRV / Rentenservice | New address and account; the DRV pays abroad, each country pays its own pension, periods of both countries count together |
| 3 | Become an Albanian tax resident | 183 days in the tax year, or permanent home / centre of vital interests |
| 4 | Settle the German tax side | The Finanzamt Neubrandenburg is the office for pensioners abroad; it lists Albania among the countries where the statutory pension is not taxed in Germany |
| 5 | Set up the money path | Albania is in SEPA since 2025: a euro transfer from a German account is a normal SEPA payment; an Albanian account helps for bills |
| 6 | Solve healthcare | The social-security agreement does not cover health insurance: bring a policy; residents may join the Albanian public scheme voluntarily at 3.4% of twice the minimum wage, cover starting 6 months after registration |
Sources · 8
- DATA-LEGAL-0039Law 43/2025 (26.06.2025) added Art. 33/1 to the law on foreigners 79/2021: citizens of EU countries have the right to stay in Albania longer than three months without a residence permit or unique permit, provided they have sufficient means of subsistence and health insurance. They must register online no later than three months after arrival and receive a registration certificate (certifikatë regjistrimi). After 5 years of continuous residence they acquire the right of permanent stay. The monetary threshold of "sufficient means" for this route is not defined in the law text.EU citizens stay in Albania beyond 3 months without a residence permit: online registration is enough (Art. 33/1)Confidence: HIGHPeriod: 2025-2026verified 2026-11-06Law No. 79/2021 "Për të huajt" (On foreigners), consolidated text as amended by Law 43/2025
Read in the consolidated text of Law 79/2021 (i përditësuar 2025, asp.gov.al).
- DATA-RES-0011Since VKM 240 of 1 April 2026, EU citizens apply online for a registration certificate, checked within 2 working days and free of the service fee; non-EU family members of EU citizens get a residence card, also free of the service fee.EU citizens: registration certificate instead of a permitConfidence: HIGHPeriod: 2026-04 onwardsverified 2026-10-24Council of Ministers Decision (VKM) No. 858 of 29.12.2021 on residence permits, consolidated version 10 of 1.4.2026 (amended up to VKM 160/2026 and VKM 240/2026)
- DATA-PENSION-DE-0001Deutsche Rentenversicherung country page for Albania: German and Albanian insurance periods are added together for the pension entitlement (and for medical rehabilitation); nationality and place of residence play no role; each country pays the pension earned under its own system itself, and the DRV pays pensions abroad. The agreement covers pension insurance; it does not make Albania part of EU health-insurance coordination.German-Albanian pension coordination: periods are added together, each country pays its own pension, the DRV pays abroadConfidence: HIGHPeriod: 2017-2026verified 2026-11-06Deutsche Rentenversicherung: "Meine Zeit in Albanien - die Rente ist flexibel" (Verbindungsstelle Albanien)
DRV page read on 2026-11-06; the in-force date 01.12.2017 is the press release behind DATA-KB2-RETIRE-0006.
- DATA-KB2-RETIRE-0006The Germany-Albania social security agreement has been in force since 1 December 2017 (signed 23 September 2015). It covers pension insurance: insurance periods of both countries are added together for the pension entitlement, each country pays only the pension earned under its own system, and the agreement is open - nationality plays no role.Germany-Albania social security agreementConfidence: HIGHPeriod: since 2017-12-01verified 2026-11-06Deutsch-albanisches Sozialversicherungsabkommen in Kraft (Pressemitteilung, 1.12.2017)
Expanded 2026-11-06 with the DRV press-release quote; the totalization mechanics are DATA-PENSION-DE-0001 (DRV country page for Albania).
- DATA-TAX-0030183 daysAlbanian tax residence: a permanent home, 183 days in the tax year or the centre of vital interestsConfidence: HIGHPeriod: 2024 onwardsverified 2026-10-19Law 29/2023 "Për tatimin mbi të ardhurat" (On income tax), consolidated text
- DATA-TAX-DE-0002Art. 18(1): pensions are taxed only in the state of residence. The Finanzamt Neubrandenburg lists Albania among the countries where a German statutory pension is not taxed in Germany. Civil-service pensions are different (Art. 19(2): Germany taxes them).Germany–Albania treaty: a statutory pension is taxed only in the country of residenceConfidence: HIGHPeriod: 2012–2026verified 2026-10-19Bundestag-Drucksache 17/6613: Abkommen zwischen Deutschland und Albanien zur Vermeidung der Doppelbesteuerung (6.4.2010), mit Denkschrift
- DATA-MONEY-0005Admitted to the SEPA area by the European Payments Council on 21 November 2024; first SEPA transaction on 7 October 2025. By spring 2026, 11 banks offered SEPA credit transfers; customers made about 363,000 transfers worth EUR 4.3 billion in the first six months, 68% of outgoing ones started online.Albania in SEPAConfidence: HIGHPeriod: 2025-2026verified 2026-10-24Bank of Albania, launching ceremony of the first SEPA transaction in Albania (7 October 2025)
- DATA-KB2-RETIRE-00053.4 % of twice the minimum wageVoluntary membership of the Albanian health insurance schemeConfidence: HIGHPeriod: 2026verified 2026-10-21Law 10383/2011 on compulsory health insurance (FSDKSH)
What a retired life costs
A retired couple renting a one-bedroom flat pays about EUR 520 a month of fixed costs in Durres and about EUR 720 in Tirana before food, at October 2026 prices; one person alone runs about EUR 650 in Durres. Rent is the lever: the coast is markedly cheaper than the capital.
Our retirement page budgets the couple line by line, the budget guide shows what EUR 50,000 to 200,000 buy on the coast, and the holiday page prices the seasons. If a car comes with you, read the car-import page first: only VAT 20% at customs, Euro 4 minimum, and six months on German plates within any twelve.
Questions and answers
Sources
- Law No. 79/2021 "Për të huajt" (On foreigners), consolidated text as amended by Law 43/2025. Albanian State Police (ASP), 2025-11-01 (accessed 2026-10-19)
- Bundestag-Drucksache 17/6613: Abkommen zwischen Deutschland und Albanien zur Vermeidung der Doppelbesteuerung (6.4.2010), mit Denkschrift. Deutscher Bundestag, 2011-07-15 (accessed 2026-10-19)
- Deutsch-albanisches Sozialversicherungsabkommen in Kraft (Pressemitteilung, 1.12.2017). Deutsche Rentenversicherung, 2017-12-01 (accessed 2026-10-19)
- Deutsche Rentenversicherung: "Meine Zeit in Albanien - die Rente ist flexibel" (Verbindungsstelle Albanien). Deutsche Rentenversicherung Bund (accessed 2026-11-06)
- Council of Ministers Decision (VKM) No. 858 of 29.12.2021 on residence permits, consolidated version 10 of 1.4.2026 (amended up to VKM 160/2026 and VKM 240/2026). Qendra e Botimeve Zyrtare (Official Publications Centre), 2026-04-01 (accessed 2026-10-24)
- Law No. 29/2023 "Për tatimin mbi të ardhurat", consolidated text with amendments up to Law 81/2025. Drejtoria e Përgjithshme e Tatimeve (accessed 2026-11-06)
- Law 29/2023 "Për tatimin mbi të ardhurat" (On income tax), consolidated text. Aksesdrejtesi (official legal texts) (accessed 2026-10-23)
- Bank of Albania, launching ceremony of the first SEPA transaction in Albania (7 October 2025). Bank of Albania, 2025-10-07 (accessed 2026-10-24)
- Law 10383/2011 on compulsory health insurance (FSDKSH). Compulsory Health Insurance Fund (FSDKSH) (accessed 2026-10-21)
What is missing
Gaps we know about: questions we have no reliable data for yet.
- The money value of "sufficient means" for the EU registration route (Art. 33/1) is not defined in the published texts; whether the VKM 858 document lists change after Law 43/2025 was not re-confirmed.
- A protocol amending the Germany-Albania tax treaty was signed on 9 June 2026 and is not yet in force (planned application from 2027); its text does not mention Art. 18, but the ratified version should be checked once published.