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.

Which country taxes which German pension (treaty of 2010)
PensionWhere it is taxedRule
Statutory pension (gesetzliche Rente), company and private pensionsOnly in the state of residence - Albania, once you moveDBA Art. 18(1)
Civil-service pension (Beamtenversorgung)Germany keeps the taxing rightDBA Art. 19(2)
Sources · 1

The relocation checklist, in order

Six administrative steps carry the move; two have deadlines and one has a day count.

Moving from Germany to Albania: the paperwork
#StepDetail
2Tell the DRV / RentenserviceNew address and account; the DRV pays abroad, each country pays its own pension, periods of both countries count together
3Become an Albanian tax resident183 days in the tax year, or permanent home / centre of vital interests
4Settle the German tax sideThe Finanzamt Neubrandenburg is the office for pensioners abroad; it lists Albania among the countries where the statutory pension is not taxed in Germany
5Set up the money pathAlbania is in SEPA since 2025: a euro transfer from a German account is a normal SEPA payment; an Albanian account helps for bills
6Solve healthcareThe 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

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

Not any more. Since Law 43/2025, EU citizens stay beyond three months with sufficient means, a health policy and a free online registration within three months of arrival; after five years comes permanent residence. Visa D/P and the pensioner permit (1,200,000 lek a year of pension income) remain as the formal-status option.

Sources

  1. 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)
  2. 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)
  3. Deutsch-albanisches Sozialversicherungsabkommen in Kraft (Pressemitteilung, 1.12.2017). Deutsche Rentenversicherung, 2017-12-01 (accessed 2026-10-19)
  4. Deutsche Rentenversicherung: "Meine Zeit in Albanien - die Rente ist flexibel" (Verbindungsstelle Albanien). Deutsche Rentenversicherung Bund (accessed 2026-11-06)
  5. 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)
  6. 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)
  7. Law 29/2023 "Për tatimin mbi të ardhurat" (On income tax), consolidated text. Aksesdrejtesi (official legal texts) (accessed 2026-10-23)
  8. 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)
  9. 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.