Albania's Law on Startups and Innovation introduced a series of incentives designed to stimulate local risk-capital and encourage high-net-worth individuals to invest in tech startups. For the first time, qualified angel investors can deduct a portion of their investments directly from their taxable personal income.
What is a "Qualified Innovative Startup"?
To benefit from tax incentives, you must invest in a startup that is:
* Registered in the National Startup Registry maintained by the Minister of State for Entrepreneurship.
* Active for less than 5 years.
* Categorized as innovative, high-tech, or R&D-focused.
Key Tax Incentives
1. **Income Tax Deductions:** Accredited angel investors investing at least €10,000 in a registered startup can write off up to 20% of the investment amount against their annual income tax, subject to a cap.
2. **Capital Gains Exemption:** Capital gains realized upon exiting a registered startup after holding the equity for a minimum of 3 years are taxed at a reduced rate of 5% (compared to the standard 15% dividend/gains tax rate).
3. **Corporate Angel Vehicles:** If you invest through an investment syndicate or corporate holding company, the syndicate enjoys exemptions on corporate income taxes on profits reinvested in registered startups within the same fiscal year.
How to Accreditation
To secure angel investor accreditation on Mercatus Capital Lotus, you will need to upload proof of net assets or professional experience in venture capital to your user profile. The Admin team reviews all accreditation applications within 48 hours.