The reference prices for the 32 areas of Tirana increase by up to 54%

As it warned before, the government has increased the reference prices of the apartments on which the property tax is assessed, in order to bring their value closer to the current real estate sale and purchase market.

The new formula approved in 2018 provides that the building tax for families will be 0.05% of the apartment's value, while for businesses, this tax will be 0.15%.

With the decision adopted in 2018 "On the methodology for determining the taxable value of the real estate "building", of the tax base for specific categories" it was determined that in cases where the price of the property was impossible to estimate from the data register in the mortgage, for the evaluation of its price, it will correspond to the average reference price of buildings that are used for residential purposes divided by cities and for the 32 cadastral areas in Tirana.

Changes to the 2018 decision on the methodology of the taxable value of real estate have been published in the Official Gazette.

Specifically, in the approved changes, the government has increased the reference prices per square meter of housing on which the property tax is calculated. The reference prices had remained unchanged since 2016.
The average increase in the reference prices for the 32 cadastral areas of the capital is calculated at 29,600 ALL per square meter.

Specifically, the increase in the reference prices of apartments for the 32 cadastral areas of Tirana varies from the value of 5,100 lek per square meter of the cadastral area 1/1 (which includes the areas "Ali Demi" Cinema, Sports Field, Shkozë village, Depo e Ujit; 1 /2 Poligrafiku, Shkoza, Autotraktorët, Shkozë village, LanaBregas, Linzë, Sauk) up to 57,800 lek per square meter, which is the highest increase in the value of reference prices for the cadastral zone 5/3 in Tirana, which coincides with areas such as: Botanical Garden, street "Community of Paris" Artificial lake.

The area with the highest reference prices continues to remain that of the former Block, which coincides with the cadastral area 5/1. With the reference prices of 2016, the fiscal price of this area was ALL 190,000 per square meter. With the latest changes, the price reaches 228,400 (increases 38,400 per square meter).

The highest increase includes cadastral areas 8/2 (Madrasa, Pharmacy no. 10, Industrial Market). The value of the reference price has increased by ALL 56,700/m2. In the cadastral area 10/1 (PTT, Telekom, former Lidhja e Shkrimtari) the price increased by 47,800 lek per square meter (see the table with the price changes of the cadastral areas in Tirana and the reference explanation of the areas).

The increase in reference prices is expected to increase the value of property tax for citizens and businesses. The tax is collected by the local government through water utility bills. / Dorina Azo

decision

Average reference prices per square meter of construction area for assessing the taxable value for housing

Average reference sales prices of: a) buildings that are used for residential purposes, by cities, for each municipality, by districts.

a) The average reference prices of the sale and purchase of buildings used for residential purposes, by cities, for each municipality, by districts (with the exception of Tirana Municipality):

b) Price per square meter of construction area intended for housing in the administrative units outside the respective city, which joined the local self-government units after the entry into force of law no. 115/2014, "On the administrative-territorial division of local government units in the Republic of Albania", is reduced up to 35 (thirty-five) percent, compared to the price of the nearest area, excluding residential areas. 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.

c) For buildings privatized by law no. 7652, dated 23.12.1992, "On the privatization of state housing", as amended, the price per square meter is 70 (seventy) percent of the price according to the areas of the table, only in the case of the first sale

Average reference prices per square meter of construction area for assessing the taxable value for buildings and non-residential premises

a) The price per square meter of construction area for economic activity, trade and service is 1.5 (one point five) times higher than the price of residential areas by city. This category also includes commercial units, where mixed processes of production, trade or retail service are also carried out at the same time. In the areas included in the Municipality of Tirana, this coefficient is 2 (two) times higher.

b) The price per square meter of construction area for covered parking and basements is 70 (seventy) percent of the price of residential apartment areas by city.

c) Price per square meter of construction area for open parking facilities, open swimming pool, open sports facilities, such as: football fields, mini-football, basketball, volleyball, tennis, golf, tracks for various athletics, motor sports competitions , horse races and others similar to them; ports and airports of any category, for the entire surface they occupy, is 30 (thirty) % of the price of the surfaces of residential apartments according to cities, or according to administrative units for the Municipality of Tirana.

ç) Price per square meter of construction area intended for industrial activity, such as: production, processing or storage of raw materials, semi-products or finished industrial products, such as: factories, warehouses, warehouses, silos, refrigerated warehouses food products (excluding those of trading and service units), as well as other similar objects, is 50 (fifty) % of the price of the housing surfaces of the relevant area, according to cities or according to administrative units for the Municipality of Tirana.

This category also includes buildings that serve for non-public educational activities of any level, as well as closed sports facilities, including closed swimming pools.

d) The price per square meter of construction area used for agriculture and animal husbandry, or supporting activities, such as: collection, storage and preservation of agricultural and livestock products, is 30 (thirty) percent of the price of residential areas in the respective area, with exception of food processing.

dh) The price per square meter of construction area for new constructions registered according to the use permit in ASHK, after the entry into force of this decision, will be indexed with the coefficient 0.2 (zero point two) times higher than the price of the apartment area of housing according to the list defined in annex 1 attached to this decision, for the first 5 years after the registration of the use permit in the ASHK

Cadastral areas

AREA 1

1/1 "Ali Demi" Cinema, Sports Field, Shkozë village, Water Depot; 1/2 Poligrafiku, Shkoza, Autotraktorët, Shkoze village, LanaBregas, Linze, Sauk

ZONE 2

2/1 Pyramid, "Qemal Stafa" stadium; 2/2 Pazari i Ri, 9th floor, "Avni Rustemi" school; 2/3 Ministry of Foreign Affairs, Ambulance No. 1, Bërryli; 2/4 School of Ballet, American Embassy; 2/5 "Studenti" City, Faculty of Economics, Martyrs' Cemetery, Sauk, Selitë

ZONE 3

3/1 Xhamlleku, Profarma, "Bardhyl" street, "Kongresi i Manastir" street, "Zhan D'Ark" Boulevard; 3/2) Porcelani, IK V, Kinostudio, "Hoxha Tahsim" street, Old Lana, Linzë village

ZONE 4

4/1 Hospital complex, SHIK, Oxhaku, Allias i ri, Tufinë village; 4/2 Allias, "Njazi Meka" street, Riverside, Allias i Ri, "Myslym Keta" street "5 Maji"

ZONE 5

5/1 Ex–Block, University Library, Vodafone; 5/2 "Selman Stermasi" Stadium, Shushica, Artificial Lake; 5/3 Botanical Garden, street "Community of Paris" artificial lake; 5/4 "Diplomat" Hotel, "Vasil Shanto" block, Selitë e Vogël

AREA 6

Technological School, Kombinati, Vaqar, Selitë, Yzberisht, Sawrë

ZONE 7

7/1 St. District Court, Former "Albania Today" Exhibition; 7/2 Block of Embassies, Faculty of Civil Engineering; 7/3 NSHRAK, park of the Ministry of the Interior, Bread Factory; 7/4 New Ring, Flour Factory, former Aviation Field, Yzberisht

ZONE 8

8/1 Selvia, "Partizani" gymnasium, "Tafajt" street; 8/2 Madrasa, pharmacy no. 10, Tregu Industrial; 8/3 Industrial Market, "Ajka" factory, "Dinamo" plant, Riverside

AREA 9

9/1 Bar Piazza, Block along "Zogu I", Rruga e Barricadave, "Fortuzi" street, "Sulejman Pasha" to "Mine Peza"; 9/2 Train station, General Archives, Mortgage, Polytechnic; 9/3 "Don Bosco", Shoe Factory, Riverside, Polytechnic, "Siri Kodra" street

AREA 10

10/1 PTT, Telecom, former Union of Writers; 10/2 "Myslym Shyri" Street, Police Department, Catholic Church; 10/3 Embassy Block, Prosecutor's Office, Durrës Street

AREA 11

11/1 Black Bird, former Party School; 11/2 Ferluti, former Plant Tirana, FIAT, Descent towards Laprakka; 11/3 Laprakë, Customs Directorate, Military Hospital, Riverside, Fushë Mezes, Don Bosco.

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