Are you a property owner? Here are the cases that are not taxed.

Tax on Gifted Properties and the Most Affordable Ownership Transfer Option

When transferring real estate property, taxes and fees can have a significant impact. One of the common ways of transferring ownership is through gifting. But what tax obligations come with property gifts, and how can you minimize costs? Here is what you need to know:

Tax on Gifted Properties

When a property is transferred as a gift, it is generally subject to taxation, but rules vary depending on the country. In Albania, tax regulations for gifted properties depend on the relationship between the giver and the recipient:

• Gifts between close family members (parents-children, spouses, siblings) are usually exempt from capital gains tax or gift taxes.

• Gifts outside the immediate family circle are subject to capital gains tax, typically 15% on the difference between the market value and the purchase price of the property.

It is important to declare the property's value according to market reference prices; otherwise, tax authorities may reassess the value.

The Most Cost-Efficient Ownership Transfer

To reduce tax liability, choosing the right transfer method is key:

• Family Gifting: This is the most affordable option when the recipient is an immediate family member. Full exemption from gift tax often applies.
  
  

• Inheritance: Property transferred through inheritance is generally exempt from capital gains tax for legal heirs, though administrative and notarial fees apply.

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