Early history Modern history ,
Albania during
World War I. The tricolour flag of Italy bearing the
Savoy royal shield is shown hanging alongside an Albanian flag from the balcony of the Italian headquarters. Formal relations between the two countries commenced in 1912, as the
Kingdom of Italy supported the
Albanian Declaration of Independence in said year. Italy's policies of the time towards Albania were adopted as a counterbalance to Austria's pressure in the Balkans. During the
World War I, the
Italian protectorate over Albania was established by the
Kingdom of Italy in an effort to secure a de jure independent Albania under Italian control. It existed from June 23, 1917, until the summer of 1920. From June 4 to September 3, 1920, a series of battles between Italian forces garrisoned throughout Vlorë region and Albanian nationalists divided in small groups of fighters happened and these battles were later called as the
Vlora War, which ended the Italian Protectorate. Later during the
monarchy period and the reign of
King Zog, Italy became the closest ally of Albania, making it a de facto protectorate. The Economy was highly dependent on loans and financial aid given from Italy. In the spring of 1925 two important concessions were signed with Italy; the first was the right to found a national bank and the second was the approval of the establishment of an Italian company (SVEA), to develop the economy of Albania. Later
the National Bank of Albania was founded with Italian capital and Italy helped to issue and introduce the official currency of Albania, the
Lek. , 28 September 1939. On April 7, 1939, Mussolini's troops invaded Albania, declaring it again as an
Italian protectorate. Despite some stubborn resistance, especially at
Durrës, the Italians made short work of the Albanians.
King Zog was forced into exile, and the country was made part of the Italian Empire as a separate kingdom in personal union with the
Italian crown. After the capitulation of Italy in 1943, relations between Italy and Albania were interrupted. During the
communist rule in Albania, the country was isolated and no relations were carried with western countries, including Italy. Relations were reestablished after the
Fall of communism in Albania. After the breakdown of the communist regime, Italy had been the main immigration target for Albanians leaving their country. This was due to its geographic proximity and because many Albanians viewed Italy as a symbol of the West during the communist period. From March 1997, Italy instituted a strict patrol of the Adriatic in an attempt to curb Albanian immigration. and since then Italy has helped Albania's economy during this transition time. Italy has also helped on restoring law and order in Albania after the
1997 rebellion, through
Operation Alba. In March 2020, during the first wave of the
COVID-19 pandemic in Italy, Albania sent Italy 90 doctors and nurses to cope with the pressure the Italian health system was experiencing. This act of solidarity further strengthened the good relations between the two nations. As part of the
2025 Giro d'Italia, Albania hosted the
Grande Partenza section of the race, marking the first time that a Grand Tour took place in the country. ==Economic relations ==