“The Mountain Package” is the newly approved law aimed at encouraging investment in the country’s mountainous areas, available to anyone interested, whether emigrants or residents, who have the desire and vision to build on their ancestral land.
The initiative behind “The Mountain Package,” through the project “Invest in Your Land,” seeks to provide a realistic approach to attracting investments in the country’s mountainous regions, thanks to new supportive policies for investors.
The Mountain Package was unveiled today during a meeting held at Rozafa Castle in Shkodra, with the participation of Prime Minister Edi Rama, Minister of Economy, Culture, and Innovation Blendi Gonxhja, Minister of State for Local Government Arbjan Mazniku, Mayor of Shkodra Benet Beci, Mayors of municipalities from the northern regions, various entrepreneurs, and others.
The goal of the package is to create a balanced, sustainable development of economic activities, including mountain tourism, agriculture, industry, and innovation linked to the ecosystems of these areas, while ensuring the protection of natural landscapes, preserving cultural heritage, and maintaining local culture and identity in these areas prioritized for the development of the mountain economy.
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Prime Minister Edi Rama: First of all, I would like to thank the Hysaj family for their hospitality here. This is one of the most beautiful points of agro-tourism development, and every time I visit, in addition to the pleasure of very warm hospitality, I also see changes that improve and further develop this territory in full respect for nature, even utilizing protected nature to increase the value of the offer that this important agro-tourism spot in the Shkodra region has.
Today, we are here to provide some concrete information regarding a law, now an initiative turned into law, called “The Mountain Package.” It is a law that aims, and I believe it will succeed, in overcoming the countless obstacles and the historical delay in the development of property in mountainous territories, especially in those areas where legitimate owners, rightful owners by custom, have not accepted the 7501 law and have insisted that the land be recognized and divided as they had agreed among themselves, practically returning to the boundaries set by their ancestors.
We made an intermediary effort with the 2020 law, which has its advantages, but it also showed problems related to the fact that some of the residents interested in the land are here, while others are not, and there needs to be full agreement, etc. This has caused delays and difficulties in the process. Meanwhile, “The Mountain Package” is not a package that addresses the issue of property in general; rather, it is a package that addresses the dream and desire to return to the land of our ancestors. For this reason, we have also made available a completely new financing line from the Bank of Albania—250 million euros in second-tier banks, with a 70% collateral guarantee from the state, which anyone interested can use specifically for this package. The logic of this package is that, in fact, it concerns owners who are considered factual possessors.
So, the idea is that anyone who owns property and has no disputes with neighboring landowners can obtain a certification from the municipal council stating that this family or group of families—regardless of the size—owns this property. With this certification from the municipal council, it is sufficient to apply for a development permit. Then, based on this permit, a development agreement can be made with the Ministry of Economy by paying only 1 euro. In fact, the property can only be officially registered once the investment is completed—not before. In other words, you cannot simply take the permit and register the property without doing anything. You must make the investment, and once it is completed, you can register the property. Any issues that may arise later in terms of disputes will be the responsibility of the state if they occur, but typically, the situation is clear—just as I see my friend here, who is a key figure in the transformation of Theth.
Essentially, it’s the same as being an owner and applying for a development permit. There’s also an additional benefit that has been intentionally added: the first 500 applicants, when the call opens—which will happen once the municipalities have submitted their applications to the Council of Ministers through the Ministry of Economy—will be granted a 10-year period with no obligations to the state, apart from social and health insurance for their employees. That’s the only requirement. No taxes, no VAT, nothing—for 10 years.
An incentive that no other country has, and to be honest, we had to push a bit with the IMF to make this possible, because it’s a total exemption from everything, but I believe it’s worth it. I believe that once we have the first 500 applicants and the first agro-tourism projects are realized, others will continue in the same way, but they will still face the same fiscal burdens as current agro-tourism ventures, including the 6% VAT and very low taxes, to be honest.
Now, keep in mind that last year there were 5.5 million visitors to the national parks. 5.5 million visitors, which we can now measure because they are no longer like in the past—they are measurable. Some parks charge an entrance fee, while others use tools to monitor visitor flow, which means that 5.5 million are, in fact, potential clients for an agro-tourism network that exists around these areas. The thing that many of them—if not all—would likely want is to extend their day somewhere nearby and enjoy something more than just returning the way they came.
What’s even more interesting is that 1.3 million of these visitors were in the Shkodra region, specifically in its protected areas. That’s a lot, and the growth compared to 2023 is significant, while the growth compared to 2022 is exponential.
So, Shkodra has opened up and become a destination with much more potential, no question about it. But if the Shkodra region, with all these amazing mountainous areas, follows the example of Theth, the beautiful investments made in the Malësia e Madhe region, and other beautiful investments made in Vau i Dejës, it will be a true blessing for Shkodra. But it will also be a great blessing for those who take on this responsibility.
Another point I want to emphasize, without taking up too much of your time, is that agro-tourism and the development of this network will significantly boost production. It will promote high-quality, organic, and premium products. If today agro-tourism is seen as a more affordable offering, once we join the European Union, it will transform into a luxury experience. It will be a luxury offering, much like the regions in Italy, Austria, France, or Germany, where it’s very hard to find available space, and where, secondly, it truly becomes a special experience. It’s a chance to escape the chaos, enjoy nature, and experience things that are no longer part of daily life in the city—except at home.
At the same time, developing this kind of economy will pave the way for the growth of bio-export products. For instance, some agrotourism spots are now starting to sell their olive oil products abroad as specialty items, not mass-produced goods. These kinds of initiatives should serve as encouragement for anyone still uncertain, and I believe there are plenty of examples. When we first began this effort, there were one or two agrotourism projects, but today, we have nearly 250, with a large portion having received government support through Agency for Agricultural and Rural Development programs, while others were self-started.
We’ve also passed the draft law for the Development Bank. Finally, we will have our very own development bank, which will be available to sectors and businesses that aren’t easily financed by commercial banks that seek guaranteed profits. This bank will encourage financing and investment in sectors that might initially carry high risks or require more time to become attractive to commercial banks.
Thank you very much!
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We have our people in Italy, Germany, and several other European countries, and at the moment, we are telling them to come here because we can help them with everything from Albania—they have the opportunity to come and invest here. Many years ago, there were 20 families who started tourism with guesthouses, with the houses we inherited from our families. Now, we have over 300 families who have returned from cities around the world and have become part of this land to develop tourism.
Prime Minister Edi Rama:
First of all, Theth is a village that might seem very distant in some ways, but it’s actually quite accessible. It’s a village with the highest number of young people that I have ever seen in Albania. When you gather in Theth, 90% of the people there are young. And what are these young people doing there? Most of them are entrepreneurs. I’ve seen the same thing in Saranda, though Saranda is more populated in comparison.
Another very important point is that the wages in Theth—though modest, but secure—are higher than those in Greece. And not only that, but everyone who goes and works in Theth, especially in the service sector, gets their accommodation for free—meaning lodging, food, and their salary are all provided.
Since I am a producer, and since the Minister of Economy is here, I’d like to make a suggestion. The state, the government, provides funds for agri-businesses through various programs, such as IPARD and the Albanian government’s funds. We, as producers—not just speaking for myself but on behalf of all Albanian producers—cannot impose a condition on someone who has financed their own business like the one here, but for those businesses funded by the government or benefiting from tax relief, there should be a requirement that 50%, 30%, or 40% of the products must be Albanian-made. Not my own products, not necessarily mine, but they should only use Albanian products. Three years ago in Valbona, no restaurant had Albanian wine. Today, 70% of them now serve Albanian wine.
Prime Minister Edi Rama:
You’ve achieved that because you’ve worked for it, not because we imposed a condition about where they would find Albanian wine in Valbona. I am a socialist, but I am not one of those socialists who believe in government intervention in everything.
With initiatives, however, there can be ways to help support the sale of Albanian products. That’s a small but secure step, and I believe you’ve seen that with your own agro-tourism business.
Now, mayor, it’s up to you and the municipal leaders to sit down with the urban planning departments, define the areas where you will establish maps for the implementation of this package, and, in cooperation with the minister, send these plans to the government. The government will approve these as priority development zones where this law will apply. This is a special law for those who have a connection to the mountains, opening the door for them to create economic opportunities and succeed in the mountains, thus contributing to Albania. It will be a great thing for Albania to have these centers across the country to bring in as many tourists as possible.
Thank you, mayor.
I have more requests than thanks. The economic policies in Albania are very favorable. As far as I know, only North Macedonia seems to have a lighter fiscal burden.
Prime Minister Edi Rama:
No, no, they don’t have it lighter anymore. They used to, but not anymore.
I’ve lived abroad for 27 years. I’m not sure, but this is the information I have. I have a request. During the summer, I worked a lot, and I have 19 rooms rented out, with most of the revenue coming from the summer season. For me to work during the winter, I need legal access to the lake, because everyone loves the lake. The problem I face is the significant elevation here, and in winter, the waves close it off. I’m asking for support through partnership and collaboration, combining my investments with yours so we can create something beneficial for everyone. I’m requesting access to the lake because it will be in everyone’s best interest.
Prime Minister Edi Rama:
Yes, we’ve started utilizing the lake, as it was previously underused. We’ve begun. I even saw the new pier today, and this one here as well. But there’s another aspect that I think is important, considering what’s been successful in winter tourism. There’s another sector that holds great potential, which is health tourism—physiotherapy, massages, for instance. Your son, I’m sure, has connections with physiotherapists for the rehabilitation of injured athletes or people coming to recover. This is an industry that’s rapidly gaining momentum. I even saw materials from a large conference on hospitality, where five-star hotels are now incorporating medical services, such as blood purification therapies, into their offerings. So, this is something to consider—during the winter, adding a health component can make an area like this, or any mountainous region, very attractive. Thank you very much!
