Legal and tax toolbox

Dispute before the Local Courts

Any party can submit its dispute to the local courts. The Albanian Courts have exclusive jurisdiction if the dispute concerns:

• Administrative disputes;
• Property rights over immovable property;
• Legal status of legal entities incorporated in the Republic of Albania;
• Dispute over the industrial property i.e. patents, trademarks when registered in Albania;
• Claims regarding industrial property,
• Challenge of the executive titles;
• Insolvency;

Dispute before a foreign court or arbitration

Where the dispute is outside the exclusive jurisdiction of the Albanian courts, any such action may be submitted to a foreign court or arbitration by an agreement in writing between the parties.

Choice of law

Parties can choose the law applicable to the whole or to a part of the agreement and the Albanian courts will respect this choice. However, in some specific circumstances Albanian mandatory laws can apply in any case, for instance where the agreement concerned involves consumers or labor matters, as well as art and cultural heritage.

Enforcement issues

Enforcement of a local judgement

Before enforcing a local judgment over the debtor's assets, the Bailiff must serve on the debtor a formal request to pay the amount due in ten days.

If the debtor fails to process payment by the given deadline, the creditor can start enforcement by:

• Seizing the debtor's assets (movable as well as real estate assets), which are then auctioned in a proceeding surveyed by a Bailiff;
• Freezing the debtor's funds owned by a third party and redirecting them to the creditor.

Enforcement of a foreign judgement

A final judgment rendered by a foreign court would be enforceable (i) upon the completion of appropriate judicial proceedings in Albania against the counterparty or any of its properties located in Albania according to the procedure provided by the Albanian legislation in force, and (ii) if the Albanian Court of Appeal does not ascertain any of the conditions below rendering foreign judgement unenforceable as follows:

• according to the provisions in force in Albania, the dispute does not fall within the competence of the foreign court in question;
• the lawsuit and the writ of summons are not duly delivered to the absent defendant and in due time, thus refusing him the right of defense;
• a different judgement is rendered by an Albanian court involving the same parties, subject and dispute;
• an Albanian court is examining the same dispute before the foreign court judgment/award becomes final;
• (the judgment of the foreign court has become final in violation of its legislation;
• the foreign court judgment is not in compliance with the fundamental principles of Albanian legislation.

The Albanian Court of Appeal conducts a review of the foreign court judgment, but only from a procedural perspective and it does not enter into the merits of the case. 

Enforcement of a foreign arbitration award

Republic of Albania is a member of the New York Convention 1958 “On recognition and enforcement of foreign arbitral awards” which is ratified by Albanian Parliament in 2000. The procedure on the recognition of the arbitration award based on the New York Convention “On recognition and enforcement of arbitral awards” is largely tested before the Albanian Courts of Appeal. The process of recognition and enforcement of foreign arbitration awards in Albania is procedurally carried out through a two-layered regime made up by a) The imported provisions of and b) rules of procedure as provided for in Albania Code of Civil Procedure (Code).  However, the procedure of the recognition is quick and efficient. The enforcement process is similar to the enforcement of the local judgements.