Property taxes in Albania: what owners pay

Annual property tax in Albania: 0.05% of value

The headline number: annual property tax is just 0.05% of the property value — confirmed by primary tax sources. On a €200,000 home that is roughly €100 a year. Municipalities can vary the rate by up to ±30%.

Annual property tax

0.05% of value

Typical range

~€50–200 per year

On a €200,000 home

~€100 per year

At 0.05% a year, annual property tax on a €200,000 home is about €100 — among the lowest in Europe.

Rental income tax in Albania: 15% on gross or net

Rental income is taxed at a flat 15%, but the base depends on the rental type — a distinction many guides miss:

• Short-term (holiday) rentals: 15% on GROSS income, no deductions, declared via the tax authority’s DIVA platform.
• Long-term rentals: 15% on NET income, after allowable costs.

Capital gains tax on selling property in Albania

When a property is sold, capital gains are taxed at 15% — and this is generally the seller’s responsibility, not the buyer’s. This is why the "3% buyer transfer tax" figure repeated on some sites is misleading: the main 15% is a seller-side capital-gains tax.

The 2026 property tax reform in Albania

A market-value-based property-tax reform has been proposed for 2026 which could raise the 0.05% base (draft figures suggest 0.1–0.2%). It is not confirmed in force. We update this guide as the position becomes clear — always verify the current rate with a qualified Albanian accountant.