Shqipëria Posted on 2025-10-10 12:38:00

How much should the tax be for the first apartment? - Builders' proposals: Apply progressive tax

From Elisabeta Dosku

How much should the tax be for the first apartment? - Builders' proposals:

While the Ministry of Finance is conducting consultations with interest groups on the draft law on determining the taxable value of real estate and calculating the building tax, the Builders Association has submitted concrete proposals to be included in the draft.

Referring to the Association's official letter sent to the Ministry of Finance, progressive taxation for buildings is proposed.

Specifically, first homes, used for residence by the owner or his family, should be exempted or taxed symbolically (up to 0.01% of the taxable value).

Second homes will be taxed at 50% of the standard rate, while third homes and more will be taxed at up to 150% of the standard rate.

The minimum area in cases where it is presumed to be 50 m² per apartment; 15 m² per garage; 100 m² per economic unit.

According to the Builders Association, this approach increases fiscal justice and reflects the real paying capacity of citizens.

As for unsold apartments, according to the draft, once the building is completed and receives a permit to use, all units, even unsold ones, will be subject to taxation, with the developer as the taxpayer.

In the view of the Builders' Association, this treatment places a premature fiscal burden on developers for assets that do not yet generate income, treating them the same as the ultimate owners, contrary to the principle of taxation on real use.

For this reason, it is proposed that for unsold units in completed buildings, which remain owned by the developer and have not been put into use or rented, taxation be suspended until the moment of sale or putting into use.

The builders propose that if the municipality sets a presumptive assessment due to the absence of the owner, the citizen should have the right to request a review with effect from the beginning of the assessment, not just for the following year. Reference prices should be set only by an independent central body and municipal councils should not have the authority to change prices according to local interests.

The current draft decision provides for uniform prices within an area, without reflecting the differences between new and old buildings, or between the most sought-after and least sought-after blocks.

At this point, the builders suggest that the owner be provided with the possibility of requesting an assessment from a licensed expert, when he proves that the reference price of the area does not reflect the real commercial value of the building. While the municipality should have the right to use correction coefficients according to: year of construction; quality of construction; destination; actual condition; depreciation level.

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