Yes, property owners in Albania are generally required to pay property taxes, specifically for residential buildings.
Understanding Property Tax in Albania
Property ownership in Albania comes with an annual tax obligation. This tax applies to residential buildings and is calculated based on a specific valuation method.
Tax Rate and Calculation
For residential buildings, Albania levies an annual property tax that amounts to 0.05% of the property's cadastral value.
- Cadastral Value Explained: The cadastral value is an official valuation of the property recorded in a public property registry. It's important to note that this official valuation often differs significantly from the property's real market value. Property taxes are based on this official cadastral assessment, not necessarily on what the property might sell for on the open market.
Key Aspects of Property Tax in Albania
Here are some crucial points regarding property taxes for residential properties in Albania:
- Annual Obligation: The property tax is an annual charge that property owners must pay.
- Specific to Residential Buildings: The 0.05% rate is applied specifically to residential properties, indicating a focused tax application.
- Registry-Based Valuation: The tax assessment relies on the cadastral value, which is determined by an official property registry.
- Value Discrepancy: A notable characteristic is the potential disparity between the official cadastral value and the actual market value of the property. This means your tax might be lower or higher than expected if you were to consider only the market price.
Summary of Annual Property Tax
To summarize the key details of the annual property tax in Albania:
| Tax Type | Rate | Basis of Calculation | Applicable To | Frequency |
|---|---|---|---|---|
| Annual Property Tax | 0.05% | Official Cadastral Value | Residential Buildings | Annual |
