Municipalities collect double the taxes from citizens - 430 million euros in 7 months, more money from properties too
The approach of local elections, but also the drafting of a new administrative-territorial reform, seems to have put municipalities in motion to increase their performance in revenue collection and to demonstrate greater economic sustainability.
The first 7 months of the year reflect a significant increase in collections from local taxes and fees paid by citizens and businesses.
Official figures from the Ministry of Finance show that during the period January-July 2026, municipalities have collected approximately 39.7 billion lek, or about 430 million euros, registering a strong increase compared to the same period a year earlier.
Compared to the first 7 months of 2025, local government revenues have increased by about 17 billion lek, or 75.3%. Even compared to the initial plan, municipalities have exceeded the forecast by 1.1 billion lek more.
The largest increase is in local tax revenues. Categorized by item, local taxes collected about 33.1 billion lek from 17.3 billion lek collected in January-July 2025, doubling compared to this period. Meanwhile, compared to the plan, a doubling of revenues is noted.
Revenues from property tax in the first 7 months of 2026 were realized at the level of 6.6 billion lek or about 72 million euros, with an increase of 1.3 billion lek or 24.5% compared to the previous year.
The best performance in property tax collection is in municipalities such as Himara, Cerriku, Vlora, Patos, Elbasan, and Tirana.
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 demand for the implementation of construction projects, especially in tourist and urban areas. These revenues create additional opportunities for municipalities to improve services and increase investment in local infrastructure.
Analysis/ Why does the EU remain very attractive to poorer countries, but not to rich democracies like Iceland, Norway and Switzerland?!
Nine candidate countries are making progress on their path towards the European Union, with some of them accelerating reforms to meet their membership goals.......
Card payments, new rules on exchange fees - The client must be informed in advance about the exchange rate and cost of the transaction
The Bank of Albania is establishing clearer rules on how citizens are informed about foreign exchange costs during card payments or online transfers. The......
"Pasqyra Albania"/ Rama: Citizens will receive notifications in real time - The new platform will inform about laws, decisions, services and emergencies
Prime Minister Edi Rama presented today to the parliamentary group and the government cabinet the new digital platform "Pasqyra Albania", which aims to......
Albania-Kosovo power line and Moglica 1.6 GW HPP - Three projects aim for special status, competing for priority and EU funding
As the government approved new rules for the development of projects of interest to the Energy Community, three projects directly involving Albania are among......
Fires do not stop, 3 active hotbeds in the country - Problematic situation in Dajt and some areas of Dibra
The Ministry of Defense announced that 27 fires have been reported in the last 24 hours, of which 3 remain active, while 4 others are under monitoring. Three......
4.3 million property cards are digitized - Property cadastre is finalized, procedures are simplified for citizens
4.3 million property cards of Albanian citizens, throughout the country, have been completely digitized, putting an end to disputes over ownership in cases......
Significant decline in the foreign exchange market – Major currencies weaken
The US dollar has suffered a significant drop in value this morning compared to the day before, as it was bought this Thursday for 78.8 lek and sold for 80......
Properties, a "magnet" for business financing from banks/ Real estate and working capital are leading the new wave of credit
Business lending is gaining momentum, as banks increasingly finance property and working capital needs. In the first seven months of the year, private......
