63 million euros in property tax in the municipal budget/ Himara and Cerriku lead the growth in the first half of the year

Local government revenues are experiencing strong growth, reflecting the increase in collections from local taxes and fees paid by citizens and businesses in the country's 61 municipalities. Figures published by the Ministry of Finance show that during the first half of 2026 alone, municipalities have collected approximately 34.8 billion lek, or about 371 million euros, registering a significant increase compared to the same period a year ago.
Compared to the first 6 months of 2025, local government revenues for the period January-June 2026 have increased by about 15.7 billion lek, or 81.9%. Even compared to the initial plan, municipalities have exceeded the forecast by 68.2%, collecting approximately 14.1 billion lek more.
The largest increase is in local tax revenues. Categorized by item, about 28.9 billion lek or about 308 million euros have been collected from local taxes, up from 14.4 million euros collected in January-June 2025, doubling compared to this period. Meanwhile, a doubling of revenues is also noted in relation to the plan.
Revenues from property tax in the first 6 months of 2026 were realized at the level of 5.9 billion lek or about 63 million euros, with an increase of 1.2 billion lek or 25.4% compared to the previous year.
The best performance in property tax collection is in municipalities such as Himara with +276%, Cerrik with +262%, Vlora with +186%, Patos with +168%, Elbasan with +53% and Tirana with +23%.
In the structure of local tax revenues, the contribution of revenues from two main taxes prevails, revenues from the infrastructure impact tax for new construction, which accounts for 37% of the total, and revenues from taxes on immovable property (buildings, agricultural land and plots), representing approximately 18% of total local revenues.
The largest increase in local government own revenue sources is from the infrastructure impact tax. The municipalities with the largest increase in revenue from this tax are Tirana, Vlora, Himara and Saranda, which also have the highest demand for construction.
The strong growth in revenues from this tax reflects the high dynamics of investments in construction, especially in tourist and urban areas. These revenues create additional opportunities for municipalities to improve services and increase investments in local infrastructure.
Regarding expenditures, in 6 months, local self-government units have spent 42.2 billion lek or about 5.7 billion lek more than the same period a year ago.
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