This Law outlines a process designed to stimulate economic growth and formalize land rights within Albania’s mountainous regions. The primary objective of the Law is to transform underdeveloped highland territories into "Priority Development Zones" for tourism, agritourism, and small-scale industry. By creating these zones, the state aims to integrate informal land use into the national economy, encouraging both domestic and international investment in areas that have historically faced low development and high emigration.
A central mechanism of the Law is the concept of the "non-owner possessor." This legal status applies to individuals or legal entities who have factually occupied and used state owned land for a continuous period of at least ten years without holding a formal title. Under the Law, these possessors are eligible to acquire legal ownership of the land for a symbolic price of 1 Euro, provided that the property is free of third party disputes and is not designated for military or other restricted public use.
The transfer of ownership is strictly conditional and tied to the execution of a specific investment project. Applicants must submit a comprehensive business plan that aligns with the development goals of the respective priority zone. Once an application is approved, the investor enters into a formal contract with the state. Legal title to the property is only fully granted upon the verified completion of the project, ensuring that the land is utilized for productive economic activity rather than speculative purposes. Failure to begin or complete the project within the statutory deadlines allows the state to revoke the agreement and reclaim the land.
To further incentivize development, the Law provides a robust suite of fiscal benefits for early investors. The first 500 approved projects are granted a ten year exemption from several significant financial obligations, including property taxes, corporate income tax, and value-added tax (VAT) for specific services. Additionally, these projects are exempt from infrastructure impact fees, which are typically a substantial cost in new construction. These incentives are designed to lower the initial barriers to entry and increase the long-term viability of businesses in remote locations.
Administrative governance of the Law is shared between local and central authorities. Municipalities are responsible for identifying potential development zones and verifying the status of local possessors through public transparency periods. The final designation of these zones and the approval of large-scale development permits fall under the jurisdiction of the Council of Ministers and the National Council of the Territory. This centralized oversight is intended to ensure that all developments comply with national standards for urban planning and ecological management within the designated regions.