Tirana, Albania

Revaluation of Immovable Property’s Value in Albania

By Gerhard Dule, Gjika & Associates, Attorneys at Law

The Albanian real estate environment has undergone significant changes, witnessing a rapid increase in the construction sector. This has also positively affected the market value of previously existing properties due to the upgrading of urban areas and concentration of demands for immovable properties.

In the past few years, the meeting point of the requests and demands for immovable properties, in a considerable number of cases, has faced a downsize as to the real value of the properties, mainly due to the ownership transfer tax levied on the transfer of immovable properties, which currently is 15% on the capital gains.

The Albanian government, aiming for the formalisation of the value of the immovable properties, has adopted Law 90/2019 On the Revaluation of the Immovable Properties, entered into force on 14 January, and effective up to 30 September 2020. This law is the third of its kind adopted by the government in view of the positive effects produced by the first two.

The law provides for the possibility for all persons to revalue their immovable properties by applying a rate of 3% on the difference between the market value and the initial value of the property, and for all legal entities to revalue their properties at a rate of 5%.

In addition to its two predecessors, Law 90/2019 provides the possibility to revalue even the immovable properties which are currently undergoing the legalisation procedure or are already legalised.

Interested parties should file an application with the State Agency Cadastre, while the revaluation of the property may be performed either by a licensed professional or by the SAC, but in the latter case the property is revalued based on the state reference prices which are generally lower than the market prices.

The Albanian government foresees the revaluation to be performed on approximately 50,000 properties and to have a positive effect on the state budget of EUR 3.3 million.


Gerhard Dule

Gerhard Dule

GGI member firm
Gjika & Associates, Attorneys at Law
Law firm services
Tirana, Albania
T: +355 4 2400900
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: www.gjika-associates.com

Gjika & Associates was established in 2013. The firm has been focused on the energy, oil and gas, and real estate sectors, as well as M&A related to power projects.

Gerhard Dule joined Gjika & Associates as an associate in June 2017. He graduated from the University of Vlorë “Ismail Qemali”, Faculty of Law, and holds an MS in Public Law from Tirana University, Faculty of Law. He has considerable experience in consulting and due diligence, and has regularly been involved in drafting contracts and also advising clients in relation to corporate and business law, real estate, public procurement and concession law, energy and natural resources, bank law, competition law, etc.


Published: Real Estate Newsletter, No. 11, Spring 2020 l Photo: allasimacheva - stock.adobe.com

 

Ggi Logo 150x109px

GGI Global Alliance AG

Sihlbruggstrasse 140
6340 Baar
Switzerland

Contact

T: +41 41 7252500
F: +41 41 7252501
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.ggi.com