The Albanian government’s recent decision to increase fiscal reference prices for apartments has brought about significant changes in property tax payments. Homeowners will face higher annual taxes ranging from 230 to 2,600 Albanian lek due to the updated values.
The calculation of property tax is directly linked to the value of the property. Under the new methodology, the property’s value will be determined based on fiscal reference prices per square meter, as determined by the Office of Cadaster for Immovable Property. The property tax rate, which was 0.05% of the apartment’s value according to the 2018 law, remains unchanged.
To illustrate the impact, let’s consider the former “Blloku” area (cadastral zone 5/1) where the fiscal price of a 90 square meter apartment at 190,000 lek/m² in 2018 was 17,100,000 Albanian lek. With the recent 20% increase in fiscal reference prices, the new value becomes 228,400 lek per square meter. Consequently, homeowners will now pay 1,728 lek more annually, a 20% increase.
The most substantial price hikes were witnessed in the cadastral zone 7/4, encompassing areas like Unaza e Re, Fabrika e Miellit, ish-Fusha e Aviacionit, and Yzberisht, where fiscal prices soared by approximately 76%.
For instance, owners of 90 square meter apartments in these areas previously paid 2,950 lek annually under the old reference prices. Now, with the increased fiscal values, they will need to pay an additional 2,193 lek per year in property tax.
This represents a staggering 74% increase compared to previous years. Previously paying 245 lek per month, homeowners will now face a monthly bill of 428.5 lek. The collection of property tax is conducted through water bills by local authorities.
Furthermore, the tax calculation for privatized apartments remains at 70% of the property’s value, as per the decision “On the methodology for determining the taxable value of immovable property building, and the tax base for specific categories”. These apartments were privatized in 1992 without any subsequent sale or purchase transactions. The price per square meter for such properties is 70% of the price, but only applies to the first sale.
Thus, for apartments in cadastral zone 1/1, covering areas like Kinema “Ali Demi”, Fusha e Sportit, and the village of Shkoza, owners of a 90 square meter apartment built after 1992 will see a tax increase of 230 lek per year.
Those who privatized their properties before 1992, in accordance with the privatization law, previously paid taxes at 70% of the property’s value, amounting to 3,077 lek per year.
With the updated fiscal values, this amount rises to 3,238 lek, representing a 5% increase. Nevertheless, for existing buildings, taxes will be 30% lower compared to apartments built after 1993, but only in the case of the first sale.
