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Albania

Real estate transaction costs and taxes in Albania

Table of contents
  1.  Due diligence costs for the purchase of real estate
    1. Municipal search
    2. Utility search (each service)
    3. Land registry search (per search)
    4.  Company search, per company
    5.  Survey/Valuation fee, approx
    6.  Phase 1 Environmental survey
  2. Costs associated with a contract for purchase of real estate and registering title
    1.  VAT on price
    2.  Transfer duty
  3. Tax or duty on the acquisition of shares in a company owning real estate
  4.  Capital gain taxation on future disposal of real estate or shares in a company owning real estate
    1.  Tax on capital gains on the disposal of the real estate itself
    2.  Tax on capital gains on the disposal of shares in a company owning real estate
Albania

1. Due diligence costs for the purchase of real estate

Cost

No charge for online search, official extracts from the Commercial Registry are approx. EUR 1/extract

VAT

Nil

1.2 Utility search (each service)

Cost

N/A

VAT

Nil

Cost

Usually EUR 10 - EUR 50 Online search available for Public Notaries only.

VAT

Nil

1.4 Company search, per company

Cost

No charge. Municipal search might be performed related to the payment of real estate local duties.

VAT

20% (included in the extract price)

1.5 Survey/Valuation fee, approx

Cost

Negotiable

VAT

20%

1.6 Phase 1 Environmental survey

Cost

Negotiable

VAT

20%

2. Costs associated with a contract for purchase of real estate and registering title

2.1 VAT on price

Cost

None

VAT

Nil

2.2 Transfer duty

Cost

15% of the property’s purchase price. However, the total amount of the transfer tax is based on ranges of minimal sale prices set by law. These price ranges vary by cadastral area, type of real estate property to transfer, the owner (e.g. if she he is an individual or legal entity), etc.

3. Tax or duty on the acquisition of shares in a company owning real estate

No specific duty related to the real estate property owned by the selling company. However, there are other duties or taxes such as registration procedures (approx. EUR 1), and 15% income tax on share transfer.

4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate

4.1 Tax on capital gains on the disposal of the real estate itself

Sell of shares in a company owning real estate: 15% income tax on share transfer. Realized Capital gains deriving from the sale of shares, regardless the ownership of the company, are treated as business income and taxed accordingly at 15% on a net basis.

4.2 Tax on capital gains on the disposal of shares in a company owning real estate

Selling shares of a company owning real estate: 15% income tax on share transfer. Realized Capital gains deriving from the sale of shares, regardless the ownership of the company, are treated as business income and taxed accordingly at 15% on a net basis.

Authors

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Portrait ofMirko Daidone
Mirko Daidone
Managing Partner
Tirana
Lulzim Alushaj