The latest property revaluation initiative starting this September, with revaluation rate set at 5%
In a recent meeting with mayors from across Albania, Prime Minister Edi Rama announced a new initiative for reevaluating real estate properties. The revaluation of properties, which has been carried out twice before at a reevaluation rate 1% and 3%, will now see an increase of that rate towards 5%. Rama emphasized that this reevaluation round will cover properties in all areas of the country, including coastal regions, with the new reference prices expected to be finalized within the next 40-45 days. This process will be open for a year, starting at the end of September 2024.
Why is this relevant
The reevaluation of real estate directly impacts property taxes and the overall real estate market. Through an adjustment of reference prices, the Albanian government aims to align property values with current market conditions. This move is crucial for ensuring a fair tax system and addressing the disparities in property values, particularly in rapidly developing areas like the coastline. Furthermore, it provides property owners with a final opportunity to reassess their properties at a reduced tax rate, which can be financially beneficial for them in the long term.
Context
The reevaluation process is not a new initiative in Albania. It has been implemented twice before, with previous revaluation rates set at 1% and 3%. However, this time, the reevaluation tax rate has been increased to 5%. That is lower than the 15% income tax that the property owners would have to pay for the amount of money above the old reference price, if they decided to sell their property. Prime Minister Rama stated that the new reference prices would not only apply to the capital city, Tirana, but also to other regions, including the coastal areas. This comprehensive approach ensures that all areas of the country are assessed accurately, reflecting the current market dynamics.
Additionally, the government is focusing on accelerating the process of property legalization. This initiative, set to begin in September, will involve municipalities working closely with the Cadastre Agency to expedite the legalization of properties. The aim is to establish a clear and fair timeline for property legalization, ensuring that long-standing applications are prioritized. The process is expected to be completed by 2026, two years ahead of the maximum deadline set by law.
The new 5% reevaluation rate and the accelerated property legalization process are significant steps towards modernizing Albania’s real estate market. These initiatives aim to ensure fair property taxation, reflect current market conditions, and expedite the legalization of properties, ultimately benefiting both the government and property owners.
Go deeper
Appeals Court upholds Veliaj’s detention, fueling further controversy and concerns over SPAK’s investigative practices
Published on March 13, 2025
Why is this important: The decision to keep Erion Veliaj in pretrial detention despite the lack of new evidence only served to reenforce concerns about SPAK’s modus operandi. Critics argue that courts and judges increasingly appear to rubber-stamp SPAK’s decisions rather than independently evaluating the merits of each case. This perception is compounded by recent revelations that SPAK can wiretap judges and defense lawyers without prior court approval, raising serious due process concerns. If the prosecution has the ability to eavesdrop on both the defense and the judges overseeing a case, it raises fundamental questions about fairness, legal oversight, and the integrity of the judicial process. The case has also sparked wider debate about the use of pretrial detention as a default measure in non-violent, administrative cases—an issue that legal experts warn could set a dangerous precedent for future prosecutions.
EU Enlargement Commissioner in Tirana: Albania deserves the EU
Published on March 13, 2025
Why is this important: Kos emphasized Albania’s progress on the path to EU membership, calling it a stable regional actor and a model for cooperation. She reassured that the upcoming May 11 elections would not disrupt the country’s negotiation process, as reforms must continue regardless of political leadership. Meanwhile, Prime Minister Rama sees Albania’s rapid progress as proof that the country is on track for EU accession and has already secured €1 billion in EU funds for reforms.
Socialist leader Edi Rama defends candidate lists: “With closed lists, we open up the party!”
Published on March 13, 2025
Why is this important: Rama argued that his approach—closed lists for candidates but an open party structure—ensures PS remains dynamic and prevents stagnation. He dismissed criticism, insisting that those left in the open lists must fight for their mandates. At the same time, he harshly attacks his opponents, portraying their candidate lists as a display of political stagnation. With the DP opposition is such a weak state, Rama can afford to open up the party against internal dissension. Indeed, despite causing some confusion and dissatisfaction, the inclusion of so many new figures that are running under the SP banner, is giving SP’s image a boost by reenforcing its contrast to Berisha’s DP.