DOING BUSINESS - TOURISM – IN ALBANIA
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Transcript of DOING BUSINESS - TOURISM – IN ALBANIA
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DOING BUSINESS- TOURISM –IN ALBANIA
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KALO & ASSOCIATES is active in the legal market for over 15 years acting as legal counsel to major investors, and IFIs. Some of our clients:
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YESTERDAY – The check list of investors was quite long: type of legal system, type of vehicle, entry options, cost of starting and continuing a business, form of government support, tax, employment cost and rules, safety, incentives, re-imbursements, exit options, etc. TODAY – Check list is rather short, Albania being a member of NATO, a member-candidate to EU and signatory of many conventions on investment protection and enforcement of claims, so there are less questions on the list U
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QUESTIONS NOW INVESTORS ASK ARE OF A PURE LEGAL NATURE:
status of title of land fairness in tender
processes/appeals secured transactions system enforcement of contracts and enforcement of claims U
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STATUS OF TITLE OF LAND
- Restitution process. - Legalization process - From-scratch registration.- Recent amendment to FDI Law - Amendment of expropriation law
enabling GOA to take land for important projects
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FAIRNESS IN TENDERS/LICENSING
Procurement, Concession, Economic Zones laws establish tender procedures (often tender documents are specified by Council of Ministers resolutions)
One guarantee is evaluation commission is not part of drafting of tender documents U
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FAIR TREATMENT OF APPEALS
We are witnessing introduction of several new special structures, like:
Public Procurement Appeal CommissionOmbudsmanProcurement “Ombudsman”Taxpayers “Ombudsman”
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SECUREDTRANSACTIONS SYSTEM
A modern secured transactions system which recognizes all forms of security interests that exist in modern societies will developed financial markets.
All financing transactions are secured through mortgages, possessory pledge and non possessory pledge and registries deal with such security routinely U
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ENFORCEMENT OF CONTRACTS
- Civil Code offers sufficient guarantees
- “Doing business” culture has improved
- Government Contracts – no difference, except Governing Law restrictions
- Limitation of liability issue UK
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ENFORCEMENT OF CLAIMS
Local courts will usually handle disputes with public administration, whereas contract disputes can be resolved elsewhere
Recognition of foreign judgments/awards
An additional force of private bailiffs recently introduced as licensed
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INVESTMENT OPPORTUNITIES:
Energy and Natural Resources Communications/Technology Tourism, Leisure, Hotels Food/Beverages Infrastructure (ports, roads) Agriculture Retail/Commercial Centers Air Transport
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TOURISM regularly defined as a
Strategic Sector
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LEGAL FRAMEWORK
International Conventions Foreign Investments Small Entrepreneurs/Company LawTourism LawPolicy Statement 2007-2013 Regulation on Water Tourism
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NEW INSTITUTIONS
Inter-ministerial CommitteeAdvisory Committee of Private
SectorInformation Centers in 12
Counties
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STATE AID
State aid in tourism is to be granted in accordance with Albanian Tourism Law and State Aid Law, and also with SAA, CEFTA. It can be provided in the form of:
Subsidies , grants, soft loans; guarantees Tax exemptions or deferrals, lowering of tax rates; Lowering of social security contributions; Equity participation
Role of National Tourism Agency (NTA): Support investors in tourism sector to secure financing; Managing the national fund for tourism development
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EFFECTIVE DOUBLE TAX TREATIES:
Austria, Belgium, Bosnia Herzegovina, Bulgaria, China, Croatia, Czech Republic, Egypt, France, Republic of Macedonia, Greece, Hungary, Italy, Kosovo, Latvia, Luxembourg, Malaysia, Malta, Moldova, Netherlands, Norway, Poland, Romania, Russia, Serbia, Slovenia, South Korea, Sweden, Switzerland and Turkey.
DOUBLE TAX TREATIES EFFECTIVE 1.1.2011
Estonia, Germany, Ireland and Kuwait.
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REGULATIONS
The sector is regulated:
Regulations for hotels, restaurants, travel agents/agencies, tour operators, souvenirs shops, touristic villages, tour guides, designing and building of tourist units
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SECTOR’S OPPORTUNITIES
- Privatization of assets under Defense Ministry
- Investments in the southern coast
- Albania good location is fit for business tourism
- Industrial parks and complexes
- Access to 500 million Euros government has allocated in the 2011 budget for
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WHAT INVESTORS EXPECT:
(i) Finalization of restitution/legalization process(ii) Law enforcement (construction, environment)(iii) Specific industry incentives (bonuses, VAT) (iv) Clear cut powers of local-central government…to be continued…
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WHAT INVESTORS EXPECT:
…continued (v) Mapping and Urban Planning (www.gc-al.com ; http://tpi.mcata.org.al:8080/Map.aspx)(vi) a better coordination with local authorities(vii) improve websites, including GIS/GPS(viii) improve education, continued training
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CLOSING NOTE TO INVESTORS:Albania is a country with great potential and recently has demonstrated to have a healthy business environment, however it is recommended to:
Due diligence on Status of Title/Standing of Target or Terms of Green Field Project
Check bankability of project and financing terms
Engage in negotiations on Terms of Contract(s). Try to mitigate the risk of payment of purchase price (Escrow is recommended)
Ensure investment benefits the special State protection U
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Hope these slides were useful!
However, should you have questions
feel free to contact us at:
www.kalo-attorneys.com
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