Buying Real Estate in Albania

Discover Albania. Owning residential or commercial real estate in Albania is easier than ever, thanks to latest property ownership provisions and our in house legal services.

COMMON QUESTIONS ABOUT ALBANIA REAL ESTATE

Who shall own property in Albania?
Personal ownership is the most common case for a foreigner purchasing a property in Albania. There is no need of creating a local company like in Montenegro, Romania,...

Are there restrictions to foreign ownership?
The restrictions pertain to agricultural lands only.

Do I need to create a company in Albania?
Only if you intent to purchase a land or to have a commercial activity.

Is Co-Ownership allowed in Albania?
YES. A co-ownership is an arrangement whereby two or more persons buy a property together and wish to provide for leaving their share (when they die) to someone other than the other co-owners.

Do local bank offer mortgage loans?
YES non-resident mortgage financing is available. Please ask for terms.

Do I need an attorney to buy a property in Albania?
In case you ask for independent attorney assistance Balkimo has negotiated with three of the largest law firms in Tirana a special all inclusive fees for property purchased.

What is the cost of the Public Notary?
For a transaction of €50’000 it can approximate €180-200!

What are the other costs linked to a purchase?
There is NO Transfer Tax (in Croatia 5%, in Montenegro and in Bulgaria 2% of the Purchase Price! In Turkey 1.5% as Buyers Tax plus electricity and water connection!).

Do you offer Property management services?
YES. For overseas owners who are concerned about owning property in Albania, we provide property maintenance services. Please ask.

Do I have to pay state or local taxes on my property?
NO there is no state tax on real estate and local taxes in Tirana are ±20€/ year (yes twenty).

Do I have to pay VAT on land, apartment and/or any property purchase?
NO. The sale of buildings and land is not subject to VAT! (20% in most of the countries).

Do I have to pay a capital gain tax on resale of my property?
NO. There is no capital gain tax in case of personal ownership (instead of Bulgaria 17.8%, Spain 18% and 20% in Turkey or Poland)!

Do I have to pay a tax on rent?
A tax of 10% is due on the amount of the rent (25% in Hungary and Spain!).

Do I have to pay wealth tax?
NO. There is no wealth tax in Albania (France≤1.8%, Germany≤0.5%, Greece≤0.8%; Spain≤2.5% every year!).

Can capital and profits be repatriated without difficulty by a non resident?
There is NO withholding tax in Albania (10% in the US). Capital and profits can be repatriated once you have paid the legally due taxes.

What is the level of inheritance/gift taxes in Albania?
There is NO inheritance tax and gift tax is 3%!

What is happening in case of default of the builder?
Builder raises finance from a bank or guarantee via the bank the mortgage loan of the prospective buyers. Nonetheless the bank requests a performance bond from the builder to guarantee that in the event of the developer default, funds are available to finish the construction. Furthermore the quality and financial standing of the builders is always thoroughly checked. All companies that we work with are members of, and regulated by, the Albanian Chamber of Builders. These companies are medium to large in size with a good track record of providing quality products that are delivered in realistic timescales.