Post by account_disabled on Jan 24, 2024 7:55:53 GMT 1
The government has published for consultation the draft law "On the tax on real estate" predicting the new concept for this tax that aims to bring more income to the state coffers, but at the same time, one more burden on the pockets of Albanians. Dev Inf real Estate Company brings you all the details of this new tax, which is expected to come into effect on January 1, 2026. It should be understood that the property tax is a local, annual tax. In article 4 of the draft law, it is underlined that the property tax is calculated as the multiplication of the taxable value of the immovable property with the applicable tax rate. The income collected from the property tax is paid to the account of the Municipality, in whose territory the real estate used by the Municipality is located, in accordance with the legislation in force on the finances of local self-government.
Taxation will be done not only for buildings but also for plots and according to the Job Function Email Databaseplan, the tax for the first category starts from 2026, meanwhile for the second from tax year 2028. Rates of taxation according to the law In another article, which is the 12th draft, it stops at the rates of taxation that will be applied. Thus, the Municipal Council of each Municipality sets tax rates for all categories of property, with the exception of state and religious properties, within the following tax rate ranges: "a) For all building units, which are included in the category of residential properties, the tax rate can vary from 0.1% (zero comma one percent) to 0.2% (zero comma two percent ); b) For all building units, which are included in the category of agricultural-livestock property, the tax rate can vary fro multiplication of the tax base by the building tax rate.
Building units defined in Article 10, point 1 of this law are exempted from building tax. The authorities responsible for the administration of the tax on the building are the General Directorate of Property Tax and the Municipality. The responsibilities of the General Directorate of Property Tax in the framework of the administration of the tax on the building are determined by the decision of the Council of Ministers. Tax on agricultural land The tax base for agricultural land is the area of agricultural land, in hectares, in the ownership or possession of the taxpayer. The surface of the owned land is determined according to the ownership certification documentation. In case of lack of documentation proving ownership, the owner of the agricultural land makes a self-declaration of the area of the agricultural land, near the Municipality where the land is located. The minimum categories of agricultural lands are given in appendix 2, to be attached to this law. For any minimum category of agricultural land, the Municipal Council may approve subcategories. The tax level is set in Lek per square meter. The tax liability is calculated as the multiplication of the tax level by the taxable base.
Taxation will be done not only for buildings but also for plots and according to the Job Function Email Databaseplan, the tax for the first category starts from 2026, meanwhile for the second from tax year 2028. Rates of taxation according to the law In another article, which is the 12th draft, it stops at the rates of taxation that will be applied. Thus, the Municipal Council of each Municipality sets tax rates for all categories of property, with the exception of state and religious properties, within the following tax rate ranges: "a) For all building units, which are included in the category of residential properties, the tax rate can vary from 0.1% (zero comma one percent) to 0.2% (zero comma two percent ); b) For all building units, which are included in the category of agricultural-livestock property, the tax rate can vary fro multiplication of the tax base by the building tax rate.
Building units defined in Article 10, point 1 of this law are exempted from building tax. The authorities responsible for the administration of the tax on the building are the General Directorate of Property Tax and the Municipality. The responsibilities of the General Directorate of Property Tax in the framework of the administration of the tax on the building are determined by the decision of the Council of Ministers. Tax on agricultural land The tax base for agricultural land is the area of agricultural land, in hectares, in the ownership or possession of the taxpayer. The surface of the owned land is determined according to the ownership certification documentation. In case of lack of documentation proving ownership, the owner of the agricultural land makes a self-declaration of the area of the agricultural land, near the Municipality where the land is located. The minimum categories of agricultural lands are given in appendix 2, to be attached to this law. For any minimum category of agricultural land, the Municipal Council may approve subcategories. The tax level is set in Lek per square meter. The tax liability is calculated as the multiplication of the tax level by the taxable base.