Donation and inheritance of properties, how much do Albanians pay? - Categories that are exempt from tax and cases when the rate is 15%
Some categories of citizens are obliged to pay tax to the state treasury in the event of inheritance or donation of property from one family member to another, just as if they were selling it.
According to data from the General Directorate of Taxes, in 2023, 84.4 million lek were paid in the form of tax by those individuals who made donations or left inheritances, while in 2024 this figure dropped significantly, registering at 35.8 million lek, or in other words 57.6% less.
This decrease in state budget revenues from this item has occurred for several reasons.
Specifically, the tax value paid during 2023 was based on the old income tax law, which exempted donations within the family line from taxation.
Specifically, according to the previous law, income derived from the transfer of ownership rights for a dwelling and/or land, within the gender relationship in the family, husband, wife, child, only once to a beneficiary, through donation and/or renunciation of property, is not taxed. While in other cases the tax rate applied is 15 percent.
Meanwhile, the new income tax law, which entered into force in January 2024, stipulates that the following are exempt from tax: donations and inheritance received by those who would qualify as legal heirs in the first and second degree; donations and inheritances received by those who would qualify as legal heirs other than the first and second degree, up to 5 million lek per taxpayer for immovable property, and up to 1 million lek for movable property per taxpayer.
As well as the transfer of ownership rights to legal heirs through donation and/or renunciation of property, when the property derives from compulsory co-ownership.
Even in this case, the exemption from tax is made if the heir or beneficiary of the gift proves that the donated or inherited items have been previously taxed or have been reported by the deceased or donor. In other cases, the tax rate is 15%.
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