Transfer of ownership, how much money do Albanians pay? - 15% tax "leaves in place" real estate sales
The real estate market during 2024 has been accompanied by continuous fluctuations because many transactions were not finalized on time pending the revaluation process.
And despite the general increase in property prices, mainly in the capital and the coast, and consequently in the transactions carried out, the tax paid by Albanian citizens for the transfer of ownership has only had a slight, almost imperceptible increase during 2024 compared to the previous year.
Official data from the General Directorate of Taxes shows that revenues collected from property sales tax during 2024 are recorded at around 5.5 billion lek or 55 million euros, and compared to 2023 there is a slight increase of only 1.6%.
One of the reasons that influenced this performance was the revaluation process, where many citizens expected the government's initiative to be approved, which aimed to carry out a 5 percent revaluation of properties. But the government decided to postpone it until after the elections and after the determination of new reference prices throughout the country was completed.
On the other hand, the increase in reference prices in the capital, which also holds the highest share of transactions, by aligning them with market value, has caused the tax paid by citizens to be lower.
According to the current income tax law, capital gains realized as a result of the transfer of ownership rights over real estate, buildings, land and agricultural land, are taxed at a rate of 15%.
In other words, for every sale of a home, commercial premises or real estate, Albanian citizens pay a 15 percent tax on the difference between the purchase value of the property and its sale value, or the reference price in cases where it is a new construction and the real sale price.
If an apartment is purchased or revalued at 60 thousand euros and sold at 100 thousand euros, the seller pays 15 percent of the difference of 40 thousand euros, or 6 thousand euros. Also, informality in declaring sales prices is another reason for this performance.
Meanwhile, some political parties in their economic programs have foreseen a reduction in the tax on the transfer of ownership by 2-7%, an initiative that, if implemented, would give another boost to transactions and increase formalization in this sector.
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