Buying foreign property means must examine in advance all terms and prerequisites of buying and owning property both in the short and the long term, and consider all the applicable taxes and fees.
As in every country we meet unique rules of taxation and additional fees in Albania as well.
Property taxes are levied by the municipal authorities in Albania following the principle that revenue from real estate is taxed in the jurisdiction where the property is located.
Further fees are to be paid for notary and legal services and the registration office.
Purchase of new property
- Registration tax (title deed) for new properties - 6 EUR/sqm
- Municipal tax depends on the region where real estate is located and varies from 0.9 to 2.1 EUR/sqm
- Notary fees are fixed by the law and operate on a sliding scale:
- 714 Euro - 43.000 Euro: 0.35 %
- 43.000 Euro - 107.000 Euro: 0.30 %
- 107.000 Euro -357.000 Euro: 0.28 %
- 357.000 Euro - 714.000 Euro: 0.25 %
- above 714.000 Euro: 0.23 %
- Then add 20% VAT on this sum.
- Depending on the complexity of the contract, lawyer’s fee will com around 300 to 700 EUR.
- Obtaining the title deed;
- Registration office fee;
- Purchase registration fee is approximately 27 EUR;
- Opening of a bank account;
- Buyer representation;
To calculate a full cost sheet the best general method is to consider and additional 8% over the price of the property. This includes all due taxes and other costs too.
You should also calculate with a furniture package in case of both new and used properties. An apartment can be completely furnished with new furniture for a sum of 2-4,000 EUR.
Taxes due after purchase as the owner of the property
A property owner in Albania has to pay certain taxes independently from the fact whether living in Albania all year, using the property only occasionally or not at all.
Albanian law does not differentiate between residents and non-residents.
- Prot tax on big business - 15% turn over bigger than €57.500
- Prot tax on small business::
- turn over up to €36.000 - 0%,
- turn over up to €36.000 - €57.500 - 5%
- Income tax - 15%
- Withholding tax - 15% (aplied on Rental Income)
- VAT on property transactions : Not applicable
- Municipal tax
- Based on the location of the property
- Vlora, Riviera, Saranda - 0.9 EUR/ sqm
- Tirana, Durres - 2.1 EUR/ sqm
- The tax gets doubled for any second or subsequent residential property owned by individuals.
- Based on the location of the property
Resale of property:
Secondary market, that is the resale of previously purchased property.
- Income Tax - Payable at 15% of income gained, that is the 15% of the difference between the sale value and purchase price.
- VAT is not applicable.
- Purchase registration fee is approximately 27 EUR.
- Obtaining the title deed is 6 EUR.
- Municipal registration tax is 2-7 EUR / sqm
The primary goal of Greale Group Buyer Representation is to always prioritize the interest of our Client, even after making the purchase. Besides market monitoring and standing by for any resale needs we consider property management and cost minimization to be our tasks as well. We strongly advise to minimize the yearly upkeep of all properties by temporary renting even when financial investment was not the first priority of the purchase.
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