Property tax, there will be no exceptions - Vulnerable groups will be compensated in other forms
The government will not apply an exemption from property tax for vulnerable groups and other categories that have not paid so far.
The medium-term revenue strategy 2024-2027 states that in 2018, changes were approved in the real estate taxation scheme, moving from a fixed rate tax per m2 to an ad valorem tax, i.e. a percentage on the value of the real estate-building. This reform was accompanied by the creation of the Tax Cadastre and the Real Estate Registry, which records real estate, owners, location, property value and other data. The adoption of the law was accompanied by the establishment of several exemptions from tax payment.
From preliminary assessments made by the government, it is noted that some exemptions should be eliminated, and there is room for the property tax rate to be increased.
These changes will be reflected in the new law "On Immovable Property Tax", which is being drafted with the assistance of the Swedish International Development Agency (SIDA) and will be in the process of public consultation.
The draft argues that since real estate tax revenues constitute the main source of local government revenue, it is necessary to keep exemptions to a minimum and, in the meantime, tax relief for vulnerable groups should be provided through other mechanisms and forms. Meanwhile, an upward revision of the tax rate is planned.
The strategy foresees that in the first quarter of the year, the Fiscal Cadastre Information System (SICF) will be finalized, as well as its interaction with other systems and its extension to municipalities.
As well as piloting, capacity building and institutionalization of procedures for the valuation of real estate, the population and maintenance of real estate data in the SIK. The new taxation system will begin application from January 1, 2026.
Currently, real estate taxes in Albania contribute 0.3% of GDP, while the average revenue generated from property taxes in other countries in the region is around 0.8% of GDP.
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