Frequently Asked Questions 
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Who can purchase real estate in Albania?
Basically, anyone can buy in Albania. The only restrictions apply to agricultural land.
Do I need to create a company to buy in Albania?
Not necessarily. If you're intending to run your property as a business (for example renting to tourists) then of course it makes sense to set up a company, but if you're buying purely for personal use, there's no need to go the company route. If you're buying land or a commercial unit, then you do need to go down the company route. Average set up costs are approximately EUR 100 for the set up, and then approximately EUR 1500 per year for taxes etc.
Are the local banks offering finance to foreigners?
Yes. Non-resident mortgage financing is available, as the main local banks are controlled by large European banks (such as Crédit Agricole, Raiffeisen Bank, National bank of Greece etc). Terms are usually between 1 and 15 years, and for foreign buyers, favourable terms are being offered, with some banks not even requesting the aplicee visit Albania.
Do I need a lawyer if I decide to buy? Can you recommend one to me?
Yes. It's not advisable to try and make any deals yourself, and a foreign lawyer won't be familiar with Albanian law. We recommend using Loloci & Associates (www.lolocilaw.com).
They charge a flat fee of EUR 1000. The legal assistance includes:(a) due diligence of the property that is going to be purchased, (b) elaboration of the sales contract, (c) application with the Office for Registration of Immovable Properties, and follow-up until the property is duly transferred and registered in name of the buyer.
Is there an official real estate registry office?
Yes. It is called the ZRPP (the State office of registration of property). They maintain a clear ownership history for each lot. The World Bank is currently funding a project to get all records online.
What are the other costs linked to a purchase?
There is no Transfer Tax to be paid by the buyer (compared with Croatia's 5%, and Montenegro and Bulgaria's 2%). There are some expenses to be paid to the ZRPP, but these never amount to more than EUR 300.
Do I have to pay any taxes on my property?
No, there is no state tax on real estate, and local taxes in Tirana are approximately EUR 7 per m2 annually. For companies, the government approved a flat tax of 10%, starting this from January 1st 2008.
Do I have to pay VAT on my property purchase?
No. The sale of buildings and land is not subject to VAT, unlike most other countries.
Do I have to pay tax if I don’t develop my land?
No. This means you can sit on land, wait for the appreciation, and sell on, with no taxes in the interim.
Do I have to pay capital gains tax on the resale of my property?
No. There is no capital gains tax for personal ownership. For companies, a capital gains taxof 10% is due on the gain realised on the sale of the property. For individual and companies there is a 3% stamp duty to be paid by the seller.
Do I have to pay a tax on rent earned through my property?
BYes, but at a rate of just 10%.
Do I have to pay wealth tax?
No, there is no wealth tax in Albania.
Can profits be easily repatriated by a non resident?
Yes. Capital and profits can be repatriated, so long as all legally due taxes have been paid.
What is the cost of insuring a property in Albania?
Between EUR 100 and EUR 250 per year (for a 2 bedroom apartment).
What kind of rental return can I expect?
Depending on the area, anything up to 5%.