Annual property tax
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
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 on sale
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.
A 2026 reform to watch
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.
Key takeaways
- Annual property tax is only 0.05% — about €100/yr on a €200,000 home.
- Rental income is 15%: on gross for short-term, on net for long-term.
- Capital gains (15%) on sale are generally the seller’s responsibility.
- A 2026 reform may raise the annual rate — verify before relying on it.
Frequently asked questions
How much is property tax in Albania?
How is rental income taxed in Albania?
Who pays capital gains tax when selling?
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Browse listingsThis guide is general information, not legal or tax advice. Verify current rules with a qualified Albanian attorney or notary before you buy.
