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An American in the city, how Albania is becoming a destination for retirees from the US

2026-02-08 08:35:00, Ekonomi CNA

An American in the city, how Albania is becoming a destination for retirees from

Lower rents and the cost of living, as well as the opportunity to stay for up to a year without a residence permit, are making Albania a favorite destination for American retirees. According to real estate agents, Vlora and Saranda are among the main cities where they rent for between $400 and $500 per month.

Since October, Lisa Spence, 62, from the state of Alabama in the USA, has been living in Vlora.

Ms. Spence tells "Monitor" that she chose to live in Albania for a year because of the low cost of living and economic viability, given her monthly pension income of $2,200.

Lisa, now retired, says she worked for 18 years as an administrator in an accounting office of a large construction company. She claims that life in the US is many times more expensive compared to Albania. According to her, this is one of the main reasons why she decided to stay for a year in Vlora.

She lives in a rented apartment in the Lungomare area of ??Vlora. For a two-room apartment with a balcony with a panoramic view, she pays 400–500 USD per month, while in the US, a similar property, according to her, would cost a minimum of 1,400 USD.

Lisa Spence

"With the income I have from my pension, I would not survive in the US. The quality of life here is very good considering the monthly income from my pension. Also, the people are very hospitable."

"In Albania you can enjoy the small moments of life, like drinking a coffee, walking or taking a stroll. The quality of the food is also very good. The climate, the clean air, the sea, Vlora is an ideal place to live a good life. There, everyone is in a hurry. Here life is calmer," she says.

This is her first experience living in a country outside the U.S. Ms. Spence became acquainted with Albania after some research she did on the list of friendly countries published by the U.S. Department of State, which includes Albania.

"It was very important that, before deciding where I would live, I did some research on the countries on the list of friendly countries published by the State Department, as for a retired lady living alone, safety remains paramount," concludes Ms. Spence.

She further emphasizes that until now it has been very easy to get outpatient medical services, also due to a flu-like condition that she passed, as well as dental care. She adds that until now she has not had to use hospital services.

Ms. Spence also recommends the city of Vlora to other American citizens looking to live abroad after retirement.

Real estate agents claim that in coastal cities, such as Vlora and Saranda, there is a trend of increasing demand from retired foreign citizens, including American citizens, to live in rental housing.

According to real estate agent Viola Shehaj-Malaj, the demand of American retirees to live in the city of Vlora in rental apartments has increased significantly in 2025, a trend that has continued in the first month of 2026.

Overall, according to her, the terms of stay for foreign citizens who have chosen Vlora to stay last from 1 to 2 years. Meanwhile, American retirees are testing this type of experience, to further decide on the terms of stay, taking advantage of the opportunity to stay up to one year in Albania without a visa or residence permit.

Ms. Shehaj-Malaj emphasizes that one of the main factors that attracts them is the low cost of living in Albania compared to the United States of America and especially the low rent prices, climate and tranquility they find in coastal cities.

"Most American citizens who are choosing to stay in Vlora claim that the main reason remains the low cost of living, especially rents that are many times cheaper. If in Vlora you find a 1+1 apartment for 400 USD/month, in the US the minimum price is about three times higher.

But it should be noted that many American retirees are in the testing phase. Many of them prefer to stay for a few weeks or a few months, taking advantage of the one-year visa-free stay and residence permit in Albania to test this experience. Some others choose to stay for a full year, to leave and return again. This period helps them decide whether to stay long-term," she underlines.

In addition to American citizens, the city of Vlora continues to be highly sought after for long-term residence by Italian retirees, according to the real estate agent. According to data published by Italian media, by March 2025, the number of Italian retirees living in Albania reached 3,000 from 300 Italian retirees in 2021.

The increase in their number has been influenced by Albania's fiscal policies for not taxing the pensions of Italian citizens.

"In practice, if in Italy 1,500 euros gross are converted into 1,150 euros net, here 1,500 euros remain clean. And it's not just those with low incomes who come, but there are also many wealthy pensioners with more than 50 thousand euros per year," an Italian pensioner living in Albania previously claimed for "Corriere Della Sera".

From residency facilities to fiscal benefits, the main reasons for choosing Albania

Besides the most important factor being the low cost of living, another strong reason that is attracting Americans is the opportunity to live in Albania for up to a year without needing a visa or long-term residence permit.

This sufficient period gives them the opportunity to get to know the country, visit coastal cities, and decide whether they want to make long-term plans for their stay.

"In the range of tourists coming to Albania, a new trend is also being noticed that includes nomadic workers (those who can work from anywhere in the world) and retirees, especially from Western countries.

In addition to Italian retirees, who have become regular residents of Albania's coastal cities such as Durres, Vlora or Saranda, another group that is showing interest in the Albanian market are Americans.

International media and PR have played an important role in this regard, as Albania is increasingly listed as one of the best retirement destinations, joining the list alongside countries like Portugal, which have clear policies to attract this category of tourists who then become residents.

In the case of Albania, the cost of living is ranked as one of the main advantages, but above all, the freedom offered by the American passport is appreciated, which allows its holders to stay in our country for up to a year without the need for long-term residency documents," emphasizes Stela Dhami, from the international real estate agency "Colliers International Albania".

Residence permit facilities for American citizens

The State Police explained to "Monitor" that based on the decision of the Council of Ministers to determine the entry and stay period approved in March 2022, citizens of the United States of America have the right to enter and stay in the Republic of Albania without a residence permit for a period of up to one year.

According to the VKM, these citizens may re-enter and remain in the Republic of Albania without a residence permit if they have stayed outside the territory of Albania for more than 90 days. This decision was taken in support of the Law "On Foreigners" and aims to facilitate the entry and residence regime for American citizens.

In addition to American citizens, citizens from Ukraine can also stay in Albania without a residence permit. Through a decision adopted in May 2023, the Albanian government decided to extend the deadline for the entry and residence of Ukrainians in Albania. From one year, they now have the opportunity to stay without a permit for up to two years.

Also, according to the Law "On Foreigners", citizens of the United States of America, European Union member states and citizens of the Republic of Kosovo, when they apply for the first time and meet the general criteria set out in Article 36 of this law, benefit from a 5-year residence permit.

According to the Law "On Foreigners", specifically under Article 33 thereof, it is determined that the residence permit, unless otherwise specified in this law or in international agreements ratified by the Republic of Albania, is granted for a period of 3 months, 6 months or 1 year, where the 1-year permit can be renewed no more than 5 times in a row.

Also, the residence permit may be granted for a period of 2 years, which may be renewed only once, or for a period of 5 years, according to the provisions of this law. The permanent residence permit is granted if the foreigner has had legal residence for 5 consecutive years in the Republic of Albania and has stable ties or activities in the country.

Albania guarantees residence permits for foreign pensioners with annual income over 1.2 million lekë

According to the updated decision "On the determination of criteria, procedures and documentation for the entry, stay and treatment of foreigners in the Republic of Albania", Albania also offers residence permits to foreign pensioners who receive a pension from their country of origin, setting several main criteria: annual pension income over 1.2 million lek.

Also in e-Albania, in the section for "Application for a residence permit for a pensioner", the following documentation is specified as necessary: ??a rental contract or document certifying suitable accommodation, proof of annual pension income in the country of origin in the amount of over 1,200,000 lekë, proof from a second-tier bank in Albania for the transfer of the pension, proof of health insurance in Albania, a valid identification document and legalized criminal record (only for the first application).

Fiscal expert Julian Saraçi points out that many foreign pensioners assume that pensions are not automatically taxed in Albania. In fact, a 15% withholding tax is applied to foreign pensions, except in cases where there are bilateral agreements for the avoidance of double taxation (DTT) with the country of origin.

Agreements with countries such as Italy, Germany or Kosovo may provide that the pension is taxed only in the source country or only in the country of residence, creating real fiscal benefits for foreign pensioners who choose Albania.

"The growing interest of foreign retirees in living in Albania is often linked to the perception that pensions are not taxed. This perception, however, needs important legal clarification."

According to Law No. 29/2023 “On Income Tax”, the exemption from personal income tax applies only to pensions originating from the mandatory social and health insurance scheme in Albania, as expressly defined in Article 11, point “a”, which excludes “income obtained as a result of insurance in the mandatory social and health insurance scheme”.

In all other cases, i.e. when the pension is received from a foreign country and the beneficiary is considered a fiscal non-resident, Albanian law provides for a 15% withholding tax on income, in accordance with the law.

From this perspective, domestic legislation does not provide an automatic exemption for foreign pensions.

However, this is where a higher standard of law comes into play, such as bilateral double taxation agreements (DTAs). Albania has signed a significant number of these agreements with various countries, including Italy, Germany, Kosovo and other European countries.

According to the principle of normative hierarchy, the provisions of these agreements have priority over Albanian domestic legislation.

In practice, many of these agreements provide that pensions are taxed only in the source country or only in the country of residence, depending on the type of pension (public or private) and the specific wording of the agreement.

This creates, in certain cases, a real fiscal relief for foreign pensioners who choose Albania as their place of residence.

However, it is essential to note that there is no standard solution that applies to all pensioners. Each case must be analyzed individually, taking into account the country of origin of the pension, the type of pension, the fiscal residency status and the specific provisions of the applicable double taxation agreement.

In this sense, Albania does not offer a “general exemption” for foreign pensioners, but a flexible legal framework, where fiscal incentives stem mainly from international agreements and not from domestic law per se.

This is why every retiree should assess their specific circumstances and, ideally, seek professional advice before making long-term fiscal and residential decisions,” explains expert Julian Saraçi.

Market outlook…

Stela Dhami, from "Colliers International Albania", predicts that in the future, the number of American foreign retirees who will seek to live in Albania will increase, if the state drafts the appropriate policies for their attraction.

"According to 'The Great American Exodus 2025' data from GetGoldenVisa, 450,000–760,000 Americans have retired to countries like Mexico and Canada, and 28% of them are headed to Europe. Currently, a high number of American retirees live in Albania, but this number could increase significantly if appropriate policies are designed to attract more retirees."

Experts recommend that possible policies to attract retirees could include international promotion, improving health infrastructure, or even fiscal incentives.

How many foreigners over 60 years old have residence permits?

For 2024, according to INSTAT data, the number of foreign citizens over 60 years old reached 3,007 people or 16% more than in 2023.

Foreigners in the age group over 60 years old constitute about 17% of the total number of foreigners with residence permits, reflecting the increased interest of retirees for long-term residence in Albania.

The main weight of foreigners with residence permits was held by the age group from 30 to 39 years old, constituting about 27% of the total, followed by the age group from 20 to 29 years old, which accounted for 19.8% of the total, followed by the age group from 40 to 49 years old, accounting for 19.5% of the total.

Of the total number of foreigners with residence permits in Albania for 2024, Europeans hold about 65.5% of the weight, followed by citizens from Asia who make up 21% of the total, while Americans, about 7%.

Trends of foreign citizens with residence permits in Albania

According to data from the Electronic Registry of Foreigners (FER) provided to "Monitor" by the State Police, for the year 2025 the number of foreign citizens with residence permits in Albania reached 27,514 active residence permits. Compared to 2024, the number of foreigners with residence permits has increased by 25.4%.

Among these, for 2025, American citizens account for 1,128 people, marking a decrease of 22.3% from the previous year. For 2025, American citizens with a residence permit in Albania accounted for 4% of the total number of foreigners with a residence permit in the country, compared to 7% in 2024.

Of the total of 27,514 active residence permits by the end of 2025, the majority of foreigners are from Kosovo, with 6,076 people, which accounts for about 22% of the total. After Kosovo, it is Italy with 3,776 people (13.7%) and India with 2,399 people (8.7%). The Philippines has 2,213 people (8%), while Egypt, 2,007 people (7.2%) and Turkey 1,862 people (6.7%).

On the other hand, Myanmar has 445 people (1.6%), China 362 people (1.3%) and Nigeria, 184 people (0.6%).

However, the main motive for obtaining a residence permit in Albania continues to be for employment and family reunification.

For 2025, of the total new applications, 65% of them were for unique employment permits, followed by applications for family reunification which constituted 13% or for study purposes, around 5%. Meanwhile, the number of foreign citizens who applied for permanent residence permits was 40, constituting 0.2% of the total number of applications for 2025.

Of the total applications, for 2025, according to the data, 7,049 or 36.4% of them are applications from women and 12,272 or 63.6% from men.

New applications for 2025

During 2025, according to the Electronic Register of Foreigners (FER), a total of 19,321 applications for residence permits were processed, which shows a significant increase compared to 13,176 applications that were processed during 2024. Compared to 2024, their number has increased by 6,145 applications or 47% more.

During 2025, the main nationalities that applied for the first time for a residence permit were India with 2,691 applications, which accounts for 14% of the total, the Philippines with 2,415 applications (13%), Italy with 2,239 applications (12%), Egypt with 2,198 applications (11%), Kosovo with 1,813 applications (9%), Turkey with 1,441 applications (7%), the USA with 606 applications (3%), Myanmar with 506 applications (3%), Russia with 442 applications (2%) and Ukraine with 312 applications (2%)./ Monitor Magazine





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