Albania's new property tax is the news every homeowner is talking about. A draft law from the Ministry of Finance would raise the annual rate on homes from 0.05% today to as much as 0.2% of market value, up to four times more. On 28 October 2026 the Prime Minister also announced a super-tax on apartments that are kept empty and on villas along the coast. At the same time, until 31 December 2026 owners have a rare chance to save money: revaluing their property at a tax of only 5%.

Not everything in the headlines is law yet, though. This guide separates what is in force today, what is still a draft and what has only been announced, with concrete examples of how much you would pay and what you can do right now.

• In force now: property revaluation at a 5% tax (Law 85/2025), open until 31 December 2026.
• Draft law: an annual property tax based on market value, 0.1%–0.2% for homes, with a 50% deduction for your first home. It would start for buildings in 2029.
• Announced on 28 October 2026: the 2027 fiscal package with 21% VAT, plus a super-tax on empty apartments and coastal villas, with no rates yet.
• Unchanged: 15% tax on the gain when you sell and 15% on rental income.

Information updated on 28 October 2026. We will update this article as soon as Parliament passes the laws.

How the property tax works today

Today the annual building tax is paid to your municipality. It is calculated from the floor area of the property and the reference price of its cadastral zone, not from what the property would actually sell for. The rate is 0.05% for homes and 0.2% for buildings used for business, and each municipality can lower or raise it by up to 30%.

That is why the amounts are small. For a 90 m² apartment in Tirana, the annual tax today ranges from about 3,600 to 10,200 lek (roughly €40 to €110), depending on the zone. Many owners barely notice it.

According to the government, the problem is that reference prices have fallen far behind the market. In 2025 the state collected about €85 million from property tax, around 0.3% of GDP, and the stated goal is to raise this to 0.7%–1% of GDP. The Ministry of Finance is also preparing new reference prices for cities outside Tirana, with more cadastral zones and higher prices, which would push the tax up even without a new rate. You can check the current figures for your area on our reference prices page.

The draft law: a property tax based on market value

On 17 June 2026 the Ministry of Finance opened public consultation on the draft law "On the immovable property tax". The key change: the tax would no longer be calculated from square meters and reference prices, but from the approximate market value of each property. That value would be set by a new fiscal cadastre, a register holding the data for every property, and municipalities would update it every year.

Proposed rates

• Homes: 0.1% to 0.2% of market value per year (0.05% today)
• Business buildings (offices, shops, hotels, factories): 0.15% to 0.25% (0.2% today)
• Building plots and agricultural land: would gradually move to taxation based on value

So the rate for homes doubles at the minimum and quadruples at the maximum. But the rate is only half of the story: the base changes too, from the reference price to market value, which in sought-after areas of Tirana, Durrës or Vlorë is often much higher. Each municipality would choose its own rate within the range.

When would it start?

The reform has been postponed several times. It was first planned for 2026; in October 2025 it was pushed back to 2028; and the June 2026 draft sets full market-value taxation for buildings from tax year 2029 and for land from 2031. Until then the current system continues, with transitional formulas. Public consultation closed on 15 July 2026, but as of 28 October 2026 Parliament has not yet passed the law, so rates and thresholds may still change.

The government's goal is clear: up to about €280 million a year from property tax, more than three times the 2025 amount.

The 50% first-home deduction: how much you would pay

The good news for most families is the deduction for your main home. Under the draft, 50% of the value of your first home is deducted before the tax is calculated, but the deduction cannot exceed a cap that depends on the municipality's category:

• Tirana (category 1): up to 8.4 million lek, about €90,000
• Durrës, Vlorë, Sarandë and Himarë: up to 4.75 million lek, about €50,000
• Other municipalities: lower caps, listed in an annex to the law

In practice, if your home is worth less than twice the cap, half its value is deducted. If it is worth more, only the cap is deducted and the rest is taxed in full. This way, expensive homes pay proportionally more.

Examples using the draft rates

• 90 m² apartment in Tirana worth €150,000, first home: €75,000 is deducted and €75,000 is taxed. Annual tax: €75 to €150, compared with about €40–€110 today.
• Apartment in Tirana worth €250,000, first home: 50% would be €125,000, but the deduction stops at the cap of about €90,000. €160,000 is taxed: €160 to €320 a year.
• The same €150,000 apartment as a second home: no deduction, so €150,000 is taxed: €150 to €300 a year.
• Holiday apartment in Vlorë worth €120,000: no deduction, €120 to €240 a year, before any possible super-tax on empty homes.

For a family with an average apartment, the increase is large in percentage terms but manageable in euros: usually around double, not four times. The real impact falls on expensive properties and on people who own more than one home. To find out what your property is worth today, try our free property valuation.

Second homes and empty apartments will pay more

The deduction applies to one home only. Every other property, whether a holiday apartment, an investment apartment or an inherited house, is taxed on its full value. Anyone who owns two or more homes would automatically pay about twice as much for each additional home as for a first home of the same value.

On 28 October 2026, presenting the 2027 fiscal package, Prime Minister Edi Rama went further and announced a property super-tax for those who buy apartments and keep them empty instead of renting them out. In his words, owners have the right to decide how to use their property, but if they keep it empty they must pay more. Two related measures were announced at the same time:

• a super-tax on villas on the coast;
• a much higher price for water used to fill swimming pools.

These measures are not part of the fiscal package going to Parliament now; they will come in a separate law. There is no rate yet, and no definition of when an apartment counts as "empty" or for how long. What is clear is the direction: pushing owners of empty homes towards renting them out or selling them, in a city like Tirana where thousands of apartments sit closed.

If you have an apartment standing empty, now is the time to run the numbers: what it would earn as a rental after the 15% tax, and what it will cost you to keep it closed. Compare rental prices by area and the properties for rent on Homezone. If you are thinking of buying on the coast, read our coastal property guide or browse villas and apartments on RivieraHomes.al, and factor the future annual tax into your budget.

Who is exempt and who has to pay

The draft law widens the circle of people who pay. The tax would be due not only from owners with a title certificate, but also from possessors: anyone with an unregistered purchase contract, anyone waiting for legalization, and even anyone using a building without a permit. In other words, not having a registered title does not exempt you from the tax.

Full exemptions under the draft

• families receiving economic aid;
• pensioners who are heads of household, under the criteria in the law;
• people with disabilities who live alone;
• 4- and 5-star hotels and resorts with an international brand, for 10 years;
• linear infrastructure such as the TAP gas pipeline and power lines, and the operational parts of ports and airports.

Payment deadlines and penalties: unpaid tax can block a sale

Under the draft, the municipality sends the tax notice through e-Albania, but you owe the tax even if the notice never reaches you. The payment deadlines are 30 June and 30 September.

The biggest change is enforcement. If you do not pay, you risk:

• a fine of 10% to 20% of the unpaid tax, plus late-payment interest for every day;
• a block at the cadastre: you cannot sell, gift or lease the property without a certificate from the municipality that your taxes are paid;
• a block at the road transport directorate (DPSHTRR): no driving licence renewal and no vehicle registration or sale;
• suspension of administrative services at the National Business Center (QKB) for your business.

If you plan to sell in the coming years, the message is simple: make sure your local taxes are paid. Small forgotten debts can stop a sale just when you have found a buyer. Read more about the process in our guide on how to sell a property.

Property revaluation at 5%: the window closes on 31 December 2026

While the new property tax is still a draft, revaluation is law, and it has a deadline. Law 85/2025, passed by Parliament on 12 December 2025, lets you update the registered value of your property by paying only 5% on the difference. Without revaluation, when you sell you pay 15% on the whole gain, measured from the old registered value, which for many properties bought 10 or 20 years ago is very low.

How it is calculated

• Tax: (new value − last registered value) × 5%. The same rate applies to individuals and businesses.
• New value: the minimum fiscal price set by the State Cadastre Agency (ASHK), or a licensed valuer's report, which cannot be lower than that minimum.
• Depreciation: when ASHK values a building, the price is reduced by 1% for each full year of ownership, up to 30%. Land is not depreciated.
• Service fee: 3,500, 7,000 or 10,000 lek, depending on the size of the tax.

Example

You bought an apartment in 2010 and it is registered at €40,000. Today ASHK values it, after depreciation, at €100,000. Revaluation costs 5% × €60,000 = €3,000. If you later sell for €110,000, you pay 15% on €10,000, which is €1,500. Total: €4,500.

Without revaluation, you would pay 15% on €70,000 at the sale: €10,500. The saving is about €6,000. Work out your own case with our tax calculator.

How to apply, and why you should not leave it to the last minute

Individuals apply on e-Albania, to the ASHK office where the property is located (not where you live). ASHK issues the invoice within 2 working days and it must be paid within 30 days. Be careful: the revaluation date is the payment date, not the application date, and tax paid after 31 December 2026 is not recognized. Businesses apply to their regional tax directorate, with a valuation from a licensed expert.

With the December rush, our advice is to apply during November. The notary also uses the value recorded in the cadastre at the time of sale, so the revaluation must be registered before you sign the contract. You will find the steps and documents in our property revaluation guide.

The 2027 fiscal package: 21% VAT and what it means for property

The 2027 fiscal package, presented on 28 October 2026 and sent to Parliament together with the budget, does not change the property tax directly, but several measures will be felt in the real estate market. All of them are still proposals:

• Standard VAT rises from 20% to 21%. Construction materials and services, as well as services such as agency commissions or professional fees from VAT-registered providers, become about 0.8% more expensive. This cost is likely to show up in the prices of new apartments.
• VAT on accommodation rises from 6% to 10% for hotels and other accommodation businesses.
• The VAT registration threshold falls from 10 to 5 million lek of annual turnover (about €54,000), from 1 January 2027. Anyone who runs short-term rentals as a business with turnover above this level will also need to account for VAT.
• Dividend tax rises from 8% to 15%. This affects people who hold property through a company and take the profit out as dividends.

Corporate profit tax stays at 15%; the government dropped its proposal to raise it to 17%.

What does not change: 15% on sales and on rent

Despite all the noise, the two taxes that hit owners' pockets hardest stay the same:

• Tax on the gain from a sale: 15% on the difference between the sale price and the registered value. Revaluation before 31 December is the simplest legal way to lower that base.
• Tax on rental income: 15% of gross rent for individuals, with no deduction for expenses. When the tenant is a business, it withholds the tax and pays it to the tax office.

For a full overview of every obligation, from notary fees to the annual tax, read our guide to property taxes in Albania.

How to prepare: what to do now

If you own one home and may sell it

• Check the registered value at the cadastre and compare it with today's value.
• If the gap is large, apply for revaluation in November and pay the invoice before 31 December.
• Pay any old local taxes so that a future sale is not blocked.

If you own two or more homes

• Estimate the future tax with no deduction for each additional home.
• If an apartment stands empty, compare the net income from renting it with the cost of keeping it and the coming super-tax.
• Revaluation is especially worth it for homes you plan to sell in the coming years.

If you are buying now

• Include the future annual tax in your budget, especially for a second or holiday home.
• Check whether the property has a title certificate; under the draft, the tax is due from the possessor even without one.
• Ask the seller for proof that local taxes are paid.

Browse apartments for sale in Tirana, compare prices with our property valuation and, if you are buying to invest, read our property investment guide to work out your yield after tax.

Frequently asked questions about the new property tax

When does the new property tax start?

Under the draft law, market-value taxation starts for buildings in tax year 2029 and for land in 2031. The law has not been passed yet, so these dates may change.

Will my property tax really quadruple?

The maximum rate is four times today's rate, but 50% of the value of your first home is deducted. For most families the increase would be around double. Expensive homes, second homes and empty homes would pay the most.

Should I do anything before the end of the year?

Yes, if you may sell your property in the future and its registered value is low. Revaluation at 5% closes on 31 December 2026; after that, the whole gain is taxed at 15% when you sell.

When does the super-tax on empty apartments start?

There is no date, rate or definition yet. The Prime Minister announced it on 28 October 2026 as part of a separate law that has not been published. We will update this article as soon as it is.