Property Taxes in Albania 2025: Complete Guide
Albania has some of the lowest property taxes in Europe. Discover what taxes apply when buying, owning, and renting out real estate in Albania.
Albania's tax regime is one of the main reasons European investors are looking south. Rates are flat, predictable, and significantly lower than in Germany, Italy, or France.
Tax when buying
New construction: 3% VAT-equivalent transfer fee, typically already included in the developer's price. Resale property: 2% capital gains tax paid by the seller; the buyer pays only ~0.5% in notary and registration fees.
Annual property tax
Owners pay an annual local tax based on the surface area and the city zone. For an average 80 m² apartment in Tirana the bill is €40–€90 per year — for a sea-view apartment in Sarandë usually under €60.
Tax on rental income
Short-term rental (Airbnb, Booking) is taxed at a flat 15% on net income after a 30% standard deduction for expenses. Long-term rental is taxed at 15% on net income with actual documented expenses.
Capital gains on resale
If you sell within the holding period, you pay 15% on the profit (sale price minus purchase price minus documented improvements). There is no progressive scaling.
Double taxation treaties
Albania has DTAs with 40+ countries including Germany, Netherlands, Italy, Austria, Switzerland and the UK. Rental income and capital gains are normally taxed in Albania only, then credited at home.
Bottom line
For a €150,000 apartment generating €12,000 in net short-term rental income, total annual tax exposure is roughly €1,300 — under 1% of asset value. This is what makes Albanian property such a compelling cash-flow play.