Real Estate Taxes & Costs in Albania 2025 | Foreign Buyer Guide
Learn about real estate taxes and costs in Albania for foreign buyers. Discover property transfer tax, notary fees, annual taxes & rental income rules.
Real Estate Taxes and Costs in Albania for Foreign Buyers (2025 Guide)
What should foreign investors expect when buying property in Albania in 2025? Here’s a complete breakdown of taxes, fees, and costs.
Albania is attracting growing interest from foreign investors and expats thanks to its affordable property prices, high rental yields, and straightforward tax system. But before making a purchase, it’s important to understand the true cost of buying real estate in Albania — from notary fees to annual taxes.
1. Can Foreigners Buy Property in Albania?
Yes - foreign citizens can buy property in Albania, with some conditions:
- Apartments and commercial property → Foreigners can purchase freely, with full ownership rights.
- Land (including villa plots) → Cannot be owned directly by foreigners. To buy land, you must either:
- Register a company in Albania, which then owns the land.
- Use reciprocity agreements (less common, more complex).
2. Main Costs When Buying Property in Albania
Here’s a breakdown of the transaction-related costs for foreign buyers:
| Expense | Approximate Cost |
|---|---|
| Notary Fees | 0.3% – 0.5% of property price |
| Property Registration | €100 – €300 (fixed, varies by size/location) |
| Legal Verification (optional) | €300 – €600 (lawyer or advisor) |
| Agency Commission | 1% – 3% (usually paid by the buyer) |
| Translation/Legalization | €50 – €150 |
💡 Most transactions are carried out in euros, even though the official currency is the Albanian lek (ALL).
3. Real Estate Taxes in Albania
a) Property Transfer Tax
- A one-time tax paid upon ownership transfer.
- Rate: ~2% of the reference property value (not the market price, but set by the local municipality).
- Paid directly at the municipality office.
b) Annual Property Tax (Immovable Property Tax)
- Based on surface area and cadastral value.
- Apartments: approx. 0.05% per year.
- Luxury or coastal properties may have slightly higher rates.
- Collected annually by local municipalities.
c) Rental Income Tax
If you rent out your property (short-term via Airbnb or long-term):
- Flat rate: 15% on declared rental income.
- Requires taxpayer registration and submission of declarations.
4. Capital Gains Tax
If you sell your property at a profit:
- A 15% capital gains tax applies to the difference between the buying price and selling price.
- Proper documentation of both transactions is essential to calculate this correctly.
5. Other Potential Costs
- Bank transfer & currency conversion fees → Depending on your bank.
- Power of Attorney (for remote purchase) → €50 – €100.
- Company registration (if buying land) → €500 – €800 (one-time setup).
Is Buying Property in Albania Worth It?
Yes - Albania remains one of the most attractive property markets in Europe.
Key reasons:
- Low total transaction costs compared to Italy, Croatia, or Greece.
- Straightforward tax system with moderate rates (15% on rental/capital gains).
- High ROI potential from rental yields and rising property values.
For foreign buyers seeking affordability, legal security, and long-term growth, Albania stands out as a top investment destination in 2025.
Need Help Navigating the Process?
We assist international buyers with:
- ✅ Legal guidance & due diligence
- ✅ Property selection in Tirana & coastal cities
- ✅ Tax registration and ownership support
📞 Contact us today: +355 68 505 0500