Who should increase the value of property? - Property revaluation, costs and benefits
From January 1, 2026, Albanian citizens will have the opportunity to revalue their assets at a 5% tax rate, with the aim of bringing cadastral values closer to market reality.
But according to a study conducted by "ALTAX", this initiative has benefits, but also costs for specific categories.
Thus, the study emphasizes that this opportunity is not the same for everyone: for some citizens it is an instrument to free up liquidity and gain access to credit; for many others, especially low-income owners, revaluation can constitute an expense that exposes them to long-term risks.
In practice, the proposed model is that of a tax on the “profit” taxed from the revaluation at 5%, but this 5% is applied only to the difference between the registered value and the new market value and not to the total value. This logic is positive because it avoids the full taxation of the property; however, the citizen does not pay only this tax. The process is accompanied by additional expenses: professional valuation, cadastral expenses, notary services and administrative records, which together significantly increase the initial costs.
But who should do the revaluation? According to "ALTAX", if the owner of a real estate property plans to sell within a 3-year period, take out a loan using the property as collateral, or formalize the value for investment reasons, revaluation may be a reasonable solution despite the initial costs.
But if the owner does not have such plans, has a low income, faces the risk of paying an increase in local tax based on the registered value along with the revaluation, in which case, the recommendation is not to carry out the revaluation for the time being.
The study highlights that a key element of uncertainty is the fact that this measure is temporary.
If after 2027 the rate returns to 15% and if there is no protection mechanism for those who have previously revalued, then the risk of additional costs on the owner who has revalued is now high. So to take an example, if a citizen revalues the property by 5%, and registers it at a higher value, but after 2027 the government increases the reference prices again, the citizen will pay 15% on the difference between the revalued value and the sold value.
This scenario would make the immediate 5% advantage unthinkable for those who do not receive the benefits of using the new value (credits, planned sales).
For these reasons, it is recommended to include not only fiscal incentives, but also guarantees, such as: exemptions for vulnerable groups, payment options for tax in installments, reductions in assessment costs for certain categories, and legal safeguards that allow retrospective taxation of a profit margin for a clear period and without burdensome costs for those who have acted in good faith.
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