The Decision of Council of Ministers no. 457, dated 26.07.2023 amending Decision no. 132, dated 07.03.2018 “On the Methodology for Determining the Taxable Value of a Real Estate ‘Building’, the Tax Base for the Specific Categories, as well as the Criteria and Rules for Alternative Tax Assessment’, as amended”, (the Decision), was published in the Official Gazette on 28.07.2023.
The Decision introduces new reference prices/values for buildings used for residential purposes, as well as non-residential buildings.
The new reference prices that will be used to calculate property taxes have been raised, indicating an increase in the assessed value of the properties and are determined by taking into consideration the location of the properties. For the city of Tirana, the reference prices are categorized based on specific cadastral areas within the city.
According to the Decision, the value of residential buildings located in administrative units outside of cities is reduced by up to 35 (thirty-five) percent compared with the price of the nearest area (such reduction does not apply to a residential complex). In the areas included in the Municipality of Tirana, this reduction is up to 30 (thirty) percent compared to the price of the nearest area.
Additionally, for buildings that have undergone privatization through the law no. 7652, dated 23.12.1992, “On the privatization of state housing,” as amended, the price per square meter is set at 70 (seventy) percent of the newly established reference price when they are sold for the first time.
Moreover, the average reference prices for non-residential buildings are outlined as follow:
- The value per square meter of construction area designated for economic activities, trade, and services is set at 1.5 times the new price of residential areas within the same city. However, this multiplier is elevated to 2 times higher for the Municipality of Tirana.
- The value of construction area designated for covered parking and basements is calculated at 70 percent of the value of residential apartment surfaces within the same area.
- The value of construction area for open parking facilities, open swimming pools, and open sports facilities is calculated at 30 (thirty) percent of the residential apartment surfaces within the same area.
- The value of construction area intended for industrial activity and those designated for non-public educational activities is calculated at 50 (fifty) percent of the residential apartment surfaces within the same area.
- The value of construction area used for agriculture and animal husbandry is calculated at 30 (thirty) percent of the value of residential apartment surfaces within the same area.
- The value of new constructions that are registered according to the usage permit in the State Agency of Cadaster, after the entry into force of this Decision will be 20 (twenty) percent higher than the value of residential apartment surfaces nearby for the initial 5-year period following the registration.
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