This draft paper discusses the process of fiscal decentralization in Albania, focusing on the transition from the old tax system to the new one. It highlights the challenges faced during this transition, such as tax avoidance and the failure to implement some approved laws, but also notes how people eventually adapted to comply with the laws. The paper explains the concept of fiscal decentralization, emphasizing the shift of authority from central to local governments, which are held accountable by their electors. It further explores the economic factors that drive decentralization, such as geographical constraints, the costs of centralized decision-making, scale economies, and the prevention of tax evasion. The paper concludes by noting that the degree of decentralization varies across countries, depending on the autonomy of local governments in managing expenditures and taxes.