From 1% to 5%, the history of property revaluation. How many properties were revalued over the years and how much revenue has the state generated?
The launch of the real estate revaluation process has been formalized, reducing the tax to 5%, from the previous 15%.
The joint instruction of the Ministry of Finance and the Directorate of the State Cadastre Agency, published in the Official Gazette, sets out the rules and procedures that individuals must follow to benefit from this process (see here).
This process is expected to significantly boost property transactions that have so far been awaiting fiscal relief, in order to avoid paying the current 15% tax rate. Many families are expected to directly benefit from this initiative.
But how has this process turned out over the years and how many times has the property revaluation been carried out?
According to official data, the first two revaluations were carried out during the years 2011-2013 and were carried out for about 95 thousand properties. Contrary to what was recently predicted, in 2011 and 2013, those who equated the value of the property with the fiscal price approved by the government, or with the market price, would pay 1% of the difference between the purchase price and the one they declared. The revaluation during this period generated 4 billion lek in the budget.
Later, the revaluation was carried out in 2016-2017 with a tax rate of 2% and was carried out for 63 thousand properties, generating around 5.1 billion lek to the budget.
Meanwhile, the last asset revaluation process began in 2020 and ended in August 2022 with a rate of 3%, from which 110 thousand families across the country benefited and 168,200 assets were revalued. If we were to talk about the profits, the state budget benefited 12.7 billion lek.
But what is the revaluation process?
Revaluation is a legal and fiscal instrument that aims to determine the value of real estate in accordance with real estate market indicators. Revaluation ensures that all property owners pay their fair share of taxes based on the true market value of their property.
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How to apply for property revaluation? Online through e-Albania, the invoice is generated after filling in the property data
Any individual who wishes to revalue property at a 5% tax rate, taking advantage of the law in force, must apply online for the property revaluation service,......
