Albania: Changes to real estate tax base

New reference market prices will apply for purposes of calculating real estate tax in the Tirana district

New reference market prices will apply for purposes of calculating real estate tax in the

Article Posted date 11 August 2023

The Albanian Council of Minister on 26 July 2023 approved amendments to Decision no.132 dated 7 March 2018 on "Methodology for valuation of the taxable value of real estate (buildings) used for residential or commercial purposes." The amendments became effective on 28 July 2023, the date published in the official gazette.

Under the amended decision, new reference market prices will apply for purposes of calculating real estate tax in the Tirana district.

  • The new reference market prices vary from 81,700 ALL/m2 to 228,400 ALL/m2 (previously from 60,000 ALL/m2 to 190,000 ALL/m2) for residential buildings in the city of Tirana and from 23,000 ALL/m2 to 115,200 ALL/m2 (previously 23,000 ALL/m2 to 66,500 ALL/m2) for other surrounding areas of Tirana.
  • The reference market prices for other districts in Albania remain the same and vary from 7,500 ALL/m2 to 67,500 ALL/m2. 

The method of tax calculation remains unchanged and will continue to be calculated annually per the following categories of the real estate: 

  • 0.05% of the tax base for buildings used for residential purposes
  • 0.2% of the tax base for buildings used for commercial purposes
  • 30% of the tax rate applicable depending on the categorization of the building applied to incomplete constructions within the term approved in the construction permit 

Municipalities have the right to decrease or increase the tax rate up to 30% for properties located in the subdivisions under their jurisdiction. In addition, municipalities may also apply once a year for a reduction of 35% on the average reference price of the buildings located in the territory which became part of the local governance unit as per the Law no. 115/2014 on Administrative Territorial Reform in Albania. 

Read an August 2023 report prepared by the KPMG member firm in Albania

 

 

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