Individuals renting out apartments on platforms such as Airbnb and Booking are not required to open a business tax ID (NIPT). However, they must declare their income through the DIVA declaration and pay a 15% tax by March 31, 2026.

“An individual who rents out an immovable property and does not engage in any other commercial activity has no legal obligation to register for rental business activity but must pay annual personal income tax on the earnings,” the Tax Directorate stated in a press release.

The growth of tourism in the country has turned short-term rentals into a profitable investment opportunity for many apartment owners.

According to AirDNA, a specialized structure that tracks the short-term rental market on Airbnb, in June there were 21,450 apartments, villas, and houses listed in Albania.

Meanwhile, annual revenues in this market are estimated to have reached €85 million. Compared to June 2023, the number of listings increased by 39%, and compared to June 2022, they rose by 73%.

However, a portion of these individuals are not registered with the tax authorities, prompting measures to formalize this activity.