How much property taxes will citizens pay in 2023? The new formula changes the flow, each asset will be taxed according to value

For the third year in a row, the income that the state budget collects from the property tax remains almost at the same level. The official data of the Ministry of Finance show that for 2023, citizens have paid nearly 6.2 billion ALL or 59.5 million euros, a very slight increase compared to the years 2021-2022, even though it is the highest figure recorded in the decade last. Revenues from the real estate tax and the transactions carried out with them (especially the building tax) have followed an upward trend over the years, albeit at moderate rates. About 5 years after the reform of the property tax (building tax), the problems related to property rights and the lack of cadastral registers, among other things, prevent the full use of the potential of this tax. Also, the increase in the number of construction permits granted and construction surfaces was expected to make a positive contribution to the income generated from this tax. In the last three years, the income from this tax is estimated at an average of 0.3% of the nominal GDP, this ratio is significantly lower compared to the average of the countries of the Southeast European region, of about 0.6% of the GDP. For this reason, last year the government released for public consultation the draft law on real estate taxation, in which it is foreseen that the tax for the building will vary from 0.1% -0.2% of its value. The basis of the property tax is the taxable value of the real estate and for the first apartment, citizens benefit from a discount. This formula will start implementation from 2026, while part of the draft is the taxation of land, agricultural land, business units, etc., which is expected to significantly increase the income from this item. In the division by municipalities, about 46% of the income from the real estate tax is collected in the municipality of Tirana, the result of the concentration of a high number of apartments and buildings in this territory but also its good administration. The municipality of Durrës ranks second in terms of weight in real estate tax revenues with about 5% of the total, followed by the municipalities of Fier, Elbasan and Vlorë.