How to calculate the property tax in Albania when selling a property ?

This is the most frequent question we receive from the property owners during our daily work. Thus, below we will explain how to calculate the property tax in Albania when selling. We are answering if you are the one to pay the amount when considering to sell your property.

What is this property tax in Albania ?

The selling tax fee of the property is a legal obligation that you can’t avoid. The burden is entirely upon the owner, and the buyer is free of charge. The amount differs from the property’s typology and value. Based on the common directive of the Ministry of Justice, and the one of Finance for the ownership transfer, we will explain the exact procedure you should follow. According to the latter, the positive difference between the selling price and the purchase one will be considered a taxable profit by an amount of 15%.

Let’s take a look at a concrete example. In case you buy an apartment, which costs 10 000 Euros and sell it for 12 000 Euros, the profit is 2 000 Euros. The latter reduces by 15%, or an amount of 300 Euros, which you will have to pay to the state. Let’s take the case when the selling price agreed between both parties, and written in the purchase contract is lower than the state reference one for the area. We will consider the actual reference price to calculate the tax.
For example, you buy the apartment for 10 000 Euros and sell it for 11 000 Euros, and based on the reference price it costs 12 000 Euros. The tax will calculate as 15%*(12 000 Euros-10 000 Euros) =300 Euros.

In case the property is re-evaluated

The owners who have already made the re-evaluation of their immovable property, profit more.

Example: If your house has a value of 60 000 Euros in previous years. You sell it for 55 000 Euros nowadays, then will be taken into consideration the higher price. In case the reference price is at the same level as the reevaluation one. So, both 60 000 Euros, the owner doesn’t have to pay any tax. Calculation: (60 000 Euros-60 000 Euros) *15%=0 Euro. Considering the scenario that the reevaluation price is higher than the reference one (it depends on the year we are referring to). This case we calculate the tax amount by subtracting the reference price with the reevaluation one. Then we multiply the difference by 15%, which will normally lower in value.

At the map below you will be able to find the reference, and market prices in different zones of Tirana
property tax in albania
We suggest you re-evaluate your property on time. Also, put it into the market with competitive prices to increase the chances of purchase. The buyer is not responsible for your obligations to the state as owner, so don’t put the fees burden on the client. At such case, the property becomes very difficult to sell because no one is willing to pay high amounts over properties that don’t respect the price-quality ratio.
For any further suggestion and professional assistance on buying, selling, or renting your property, you are welcome at our Real Estate Tirana Albania !