Property transfer tax

Property transfer tax is one of the main costs to consider when buying an apartment. This tax is usually around 3% of the purchase price and is payable upon signing the purchase agreement.

For example, if you are buying an apartment for EUR 100,000, the transfer tax will be approximately EUR 3,000. This fee is standard and is paid to the relevant tax authority when the ownership transfer is registered.

Annual property tax

Once ownership of the property has been transferred to you as the new owner, you will need to pay annual property tax. The amount of this tax varies depending on the location, type of property, and its value, but it generally ranges from 0.05% to 0.2% of the property value per year. For example, for an apartment valued at EUR 100,000, the annual tax could be approximately EUR 50–200.

Compared with other European countries, Albania has relatively low annual property taxes, which makes it an attractive destination for investors.

Rental income tax

If you plan to rent out your apartment, you must pay tax on your rental income. This tax amounts to 15% of the net profit from the rental.

For example, if your apartment generates EUR 10,000 per year after deducting maintenance, management, and other fees, you will have to pay EUR 1,500 in income tax.

VAT on short-term rentals

In Albania, VAT is 20%, but it only applies to business entities whose turnover exceeds a certain threshold. If you rent out your apartment through short-term platforms such as Airbnb or Booking.com, it is important to check whether you are required to register for VAT.

Property management fees

If you do not want to manage your apartment yourself, you can use the services of our company, which offers full rental management. Management fees range between 10–25% of rental income depending on the scope of services. Our management includes:

• Marketing and advertising on booking platforms (Airbnb, Booking.com).
• Communication with guests and coordination of stays.
• Regular cleaning and property maintenance.
• Administrative and legal services related to rentals.

Other possible costs

Owning property in Albania may also involve additional costs that are worth keeping in mind:

• Utility and service charges – Approximately EUR 50–150 per month, depending on the size of the apartment and consumption.
• Property insurance – The cost is around EUR 100–300 per year, depending on the value of the property and the level of insurance coverage.

Notary fees and legal services – Usually EUR 500–1,500 for full legal assistance with the purchase.