Revaluation of assets begins with 5%/ Finance Instruction/ How is the tax calculated? Depreciation of buildings is recognized at 1% each year
All Albanian citizens who want to revalue their assets with a 5% tax rate now have the “doors open.” The Ministry of Finance's instruction, which paves the way for the implementation of the law, has been published in the Official Gazette and is now in force.
Referring to the instruction, all individuals who own registered real estate (land and/or building) or who acquire ownership and register it by December 31, 2026, have the right to revalue this property at market value within this year.
This also includes cases where the real estate has previously been revalued, in accordance with previous revaluation laws. The individual can voluntarily choose whether to have the property revalued at the local directorate of the State Cadastre Agency (DVASHK), or with an expert licensed by the relevant institutions. In the event that the individual owns more than one property, the procedure is carried out individually for each of them.
But how is the taxable base for the revaluation of individuals' wealth calculated?
If the individual chooses to have the property revaluation done by the ASA, it is done at the reference prices in force. In this case, the taxable base is calculated as the difference between the value resulting from the revaluation and the deductible value.
In the case of buildings, the reference prices will be reduced by 1% of the value for each additional full year of use, starting from the date of acquisition of the title deed for the first time. The 1% discount will be applied to all types of real estate buildings. This discount must not exceed 30% of the reference price. In the case of land, the minimum fiscal price is the price per square meter of surface area, determined in the value map.
If the individual chooses to have the property revalued by a licensed expert, the taxable base is calculated as the difference between the value reflected in the property valuation act and the deductible value, which cannot be less than the reference prices.
The deductible value in this case is the value of the property according to the last deed registered with the competent body for the registration of immovable property. In the case where a deductible value is missing, or the registered value is expressed in currencies such as gold francs or gold napoleons, the deductible value will be the cost of use per square meter determined by the sub-legal act in force for the National Housing Authority, in the year of registration of the immovable property.
For buildings acquired in cases of inheritance, gifts or renunciation, for which the property value has not been registered, the deductible value will be the cost of use per square meter, determined by the sub-legal act in force for the National Housing Authority on the date of registration of the act.
As for land, in all cases, if there is no value in the registry, the calculated value will be taken as the deductible value, using the indexation of the land price according to the value map, with the average annual inflation.
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