New property Tax from Janary 1st

The Albanian government has proposed changes to the real estate tax, affecting property owners across the country. Here are the key points:

- Tax Rate Adjustments:

The draft law suggests modifying tax rates for different building categories.

For residential buildings, the tax rate will vary from 0.1% to 0.2% (up from the current 0.05%).

Commercial buildings will be subject to rates ranging from 0.15% to 0.25% (previously 0.2%).

Agricultural and industrial buildings will also see tax adjustments within the 0.15% to 0.25% range.

- Second Home Owners:

Owners with a second home will face higher taxes.

Families owning only one home will receive a 50% deduction on the property value, capped by maximum thresholds set by municipality categories.

- Effective Dates:

The new law is expected to take effect on January 1, 2026, impacting buildings and their categories.

For plots, agricultural land, and other categories, the changes will apply from January 1, 2028.

- Revenue Allocation:

Property tax revenue will go directly to municipal accounts.

The law categorizes properties based on value and type, extending taxation beyond buildings to include plots.