Shqipëria Posted on 2025-06-19 10:33:00

Building permits and properties are "supplied" by municipalities - 185 million euros from infrastructure, 77.4% belongs to the Municipality of Tirana

From Elisabeta Dosku

Building permits and properties are "supplied" by municipalities - 185

The local government has performed positively in collecting its own local revenues during 2024 compared to both national gross domestic product indicators and public revenues of the state budget.

However, despite being responsible for a number of important functions for the provision of public services, local government has a low share of revenue in relation to Gross Domestic Product, at only 1.66%.

Revenues from local taxes and fees in 2024 account for only 5.68% of public revenues, or 0.76% more than the previous year.

Despite the increase in revenues, fiscal decentralization as the ratio of revenue distribution between the two levels of government still remains very low.

Referring to the annual local finance report, the two main sources that supply municipalities are the infrastructure impact tax and the building tax.

The largest increase in the sources of local government own revenues is the "infrastructure impact tax", with a realization of 18.5 billion lek or 185 million euros and about 42% more than a year ago. In this source, the largest share with 77.4% is held by the municipality of Tirana. Compared to a year ago, this source has increased by about 5.4 billion lek or 42% and the municipality of Tirana in this increase accounts for 4.9 billion lek or 90.5% of the increase of this source.

In 2024, revenues from property taxes are about 7.6 billion lek or 19% of the total local government revenues. The municipality of Tirana alone has secured 3.7 billion lek or 49% of this source for the entire local government.

The increase in income from this item by 24% compared to the previous year is a very positive signal, as in the past three years, income from this source was at the same level.

The building tax accounts for about 78% of total property tax revenues, while in 2024, revenues from real estate transactions increased by about 4.51%.

The local government has collected its own revenues during the past year of about 44.4 billion lek, of which about 40.3 billion lek or 91% are revenues from local taxes and fees and the remaining 4.1 billion lek or 9% are non-tax revenues.

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