Albania's market-value property tax: how much you would pay under the new draft law
The June 2026 draft raises the tax on homes from 0.05% to 0.1–0.2% of market value, with a 50% deduction for your first home. Who pays more, and when it starts.
By Galip Sulaj8 min read
Albania's property tax is set for a fundamental overhaul. The draft law that the Ministry of Finance published for consultation on 17 June 2026 proposes taxing homes and land on their approximate market value, at a rate of 0.1% to 0.2% for homes, up from 0.05% today. The first home you live in would get a 50% deduction, capped by municipality, while second homes, empty homes and flats let as holiday rentals would pay more. According to the draft, the new system applies to buildings from tax year 2029 and to land from 2031. Below we explain what the draft says, how much you might pay and what is worth doing now.
Cover photo: Jakub Zerdzicki / Pexels
- Current property tax rate for homes, according to Monitor (17.06.2026)
- 0.05%
- Proposed rate for homes, on market value
- 0.1–0.2%
- Deduction for your first home, up to the municipal cap
- 50%
- Year the new system starts for buildings (land: 2031)
- 2029
What changes: from floor area to market value
Today, two flats of the same size pay almost the same tax, even if one is in central Tirana and the other on the edge of a small town. The draft sets out to change exactly that: the more expensive the property and the closer it is to urban centres, the higher the tax (Top Channel, 18 June 2026).
Market value would be taken from value maps prepared by the State Cadastre Agency (ASHK), which divide the country into zones with reference prices per square metre. Each property's data would be held in a central register, the Fiscal Cadastre, and a new General Directorate of Real Property Tax would coordinate with municipalities, which remain in charge of collecting the tax (Alprofit Consult, 23 June 2026).
The fiscal goal is clear: according to public broadcaster RTSH, the reform aims to raise municipal revenue from this tax from 0.28% to 0.7–1% of GDP.
Proposed rates by type of property
Each municipal council would choose its rate within the legal range and must approve it by 31 January every year (Hashtag.al, 17 June 2026).
| Residential buildings | 0.05% | 0.1% – 0.2% |
|---|---|---|
| Buildings for economic activity | 0.2% | 0.15% – 0.25% |
| Agricultural and pasture land | – | 0.05% – 0.15% |
| Forest land | – | 0.05% – 0.15% |
| Undeveloped and other land | – | 0.075% – 0.175% |
One detail directly affects anyone letting a flat by the night: under the draft, residential buildings used for tourist accommodation are classified as buildings for economic activity. In practice, a flat on Airbnb or Booking would be taxed at 0.15–0.25%, not as a home (Alprofit Consult, 23 June 2026). We cover the other short-term rental rules in our article on the 15% tax and tax inspections.
Your first home: a 50% deduction, capped by municipality
The draft provides a deduction from the value of your first home, where you are resident, equal to 50% of its value, but no more than a cap that depends on the municipality's category. Municipalities are split into seven categories (RTSH; Monitor, 17 June 2026).
| Category | Value |
|---|---|
| Cat. 1 (Tirana) | 8.4 m lek |
| Cat. 2 | 4.75 m lek |
| Cat. 3 | 3.55 m lek |
| Cat. 4 | 2.8 m lek |
| Cat. 5 | 2.05 m lek |
| Cat. 6 | 1.45 m lek |
| Cat. 7 | 0.75 m lek |
Anyone who owns two or more homes can claim the deduction for only one of them (Shqiptarja, 17 June 2026). According to Alprofit Consult, owners would have to declare their main home by 30 June each year. Second homes and homes kept empty get no deduction and are taxed on their full value (Business Magazine, 19 June 2026).
Photo: Jakub Zerdzicki / Pexels
How much will you pay? A simple example
To make it concrete, take a flat with a market value of 12 million lek. The calculations below are ours, based on the draft's rules as the sources describe them; the final text of the law may change them.
| First home in Tirana (6m deduction) | 6,000,000 lek | 6,000 lek | 12,000 lek |
|---|---|---|---|
| First home in a category 2 municipality (4.75m cap) | 7,250,000 lek | 7,250 lek | 14,500 lek |
| Second or empty home (no deduction) | 12,000,000 lek | 12,000 lek | 24,000 lek |
In other words, for most families who own a single home the increase stays moderate, especially where the council picks the bottom of the range. Owners of several properties, empty flats or holiday lets will feel the reform more. To see what your property is worth today, try our free property valuation.
Press reports describe the first-home deduction differently (for example, whether 50% of the value or the full cap is deducted). The figures above are illustrative. Only the final approved text of the law will settle the calculation.
Who is exempt, and what happens if you do not pay
Under the draft, exemptions cover state property, religious buildings, social housing, homes of families on social assistance and those where the head of household is a pensioner, as well as linear infrastructure such as pipelines and power lines. Four- and five-star accommodation with special (international brand) status would be exempt for 10 years from the start of operations (RTSH; Business Magazine, 19 June 2026).
For non-payment, the draft provides for suspending services from the State Cadastre Agency, the National Territorial Development Agency, the National Business Centre and the vehicle registration authority (RTSH). Business Magazine also reports fines of 10–20% of the unpaid amount plus daily late interest.
Timeline: when it takes effect
- Draft law published for public consultationMinistry of Finance, consultation no. 995
- Public consultation closesAccording to Alprofit Consult
- Deadline for revaluing property at a 5% taxLaw 85/2025, separate from this draft
- Market-value tax starts for buildingsCurrent rates and system apply until then
- Market-value tax starts for landAgricultural, forest and other plots
In the sources we reviewed up to 29 September 2026, we found no report that the draft has been approved by the Council of Ministers or by Parliament. Rates and caps may therefore still change.
What is worth doing now
Revaluation is a separate process, explained in detail in our article on the 5% property revaluation. If you are planning to buy, the annual tax is only part of the cost; see also the costs of buying property. Buying from abroad? Start with our guide for buyers abroad.
Sources
- Monitor: After revaluation, the proposal to double the tax on homes returns (in Albanian), 17 June 2026
- Hashtag.al: Property tax to rise to 0.1–0.2% of market value (in Albanian), 17 June 2026
- Shqiptarja: New reform, owners of more than one home will pay more (in Albanian), 17 June 2026
- Top Channel: Property tax to rise and move closer to market value (in Albanian), 18 June 2026
- Business Magazine: New property law, branded resorts escape the tax for 10 years (in Albanian), 19 June 2026
- Alprofit Consult: The new real property tax 2026 (in Albanian), 23 June 2026
- RTSH: New draft law, property tax to be calculated on market value (in Albanian), June 2026
Read more
- What is a home worth?A free estimate from similar listings and the official reference prices.
- Buying costs, with a calculatorThe notary tariff, the ASHK fees and who pays which tax, with official sources.
- Buying from abroad, step by stepPower of attorney and apostille, ASHK checks, the notary and paying by bank for those who live outside Albania.
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