Home Property in Albania
How to buy a house in Albania?
Here you will find the detailed information about real estate purchasing in Albania:
- the right way to choose the property and to effect the deal;
- property taxes and duties that should be paid;
- everything about home loans in Albania;
- home property management and renting;
- rental, commercial properties and related investment properties.
Real estate for sale
Most recent offers from house owners in Albania and from real estate agencies. Advertisements with the fixed price and auctions are listed here.
You can leave a comment and give advice to other visitors planning to buy a home in Albania.
Real estate acquisition in Albania is under the jurisdiction of national government. However, public notaries are authorized to provide a wide variety of services dealing with real estate purchase agreements.
According to Albanian law, local notaries have to exploit web-based digital mortgage registers. This innovation allows accelerating the whole procedure for up to 10 days.
Albanian law states that a foreigner may purchase real estate in the country on the same terms as its resident.
Both private individuals and legal entities are entitled to purchase real property in Albania. The only restrictions apply to farmland ownership, which is allowed for legal entities only.
In Albania, there is no real estate tax and capital transfer tax.
It stands to mention that Albanian real property is currently returned to successors of its owners during the pre-communistic period. Consequently, there is no need to contribute much time and attention to ensure clean title to such property.
Prices for real estate in Albania grow steadily; however, housing in this small Balkan country is still relatively cheap. Average prices for new build apartments on the coastline range from €650 to €800 per sq. m.
Flats and studio apartments that are located far from the seaside cost around €450–650 per sq. m. Prices for other facilities in other places are roughly the same. Cottages and apartments along the shore of Lake Ohrid, which is located on the border between Albania and Macedonia, can be purchased for some €450–700 per sq. m.
Advantages of Albanian real estate:
- nice roads;
- drastic infrastructure development;
- a clean beautiful sea;
- delicious local cuisine.
Disadvantages of Albanian real estate:
- significant difference in mentality;
- overall poverty;
- underdeveloped infrastructure.
The process of real estate acquisition lasts about 2 months and comprises the following stages.
Having chosen a desired piece of real property, you have to sign a reservation agreement. This document encompasses all legal obligations of both parties. The agreement must contain a clause, obliging the real estate agency to provide legal support at all stages of the transaction. It is also advisable to include a clause on customer service in native language.
The next step is for the notary to inspect the clean title of real property and verify authenticity of the property deed. In addition, the notary has to examine full history of associated property before drawing up a real estate purchase agreement.
Having entered into a preliminary agreement, the buyer makes an initial payment to the vendor in the amount of 10 % of the value of real property under construction or 30–50 %, in case the house is at least half-built. An advance payment of €2000–5000 is usually paid in cash immediately after the agreement has been signed. The remaining amount is transferred to the vendor’s bank account.
Subsequently the principal sale and purchase agreement is made. The agency passes the property deed to the buyer. A lawyer draws up an actual sales transaction.
This transaction is registered at a real estate registration agency within one month after the principal agreement has been signed.
Finally, the buyer transfers the remaining amount of money to the vendor’s bank account and receives a certificate confirming the ownership right on real estate.
According to Albanian law, real estate and land acquisition are not subject to VAT. The only thing that has to be paid for is object registration;
In most regions of the country there is no need to pay monthly property tax. In Tirana though, this tax requires an annual €20 payment;
In case of real estate lease, the value added tax amount to 10 % of the total rental payment.
Notarial services. The sum is calculated based on services rendered, real property value and area.
If you purchased a piece of real estate worth from €25 000 to €80 000, realtor services would cost you 3–4 % of its value. If real property goes for more, agency commission might be reduced.
This sum covers apartment or house picking, a familiarization tour across several cities, and legal consultation.
Insurance for a two-room apartment in Albania costs around €100–200 a year. Its final amount depends on real property value and other factors. archived version