The increase in fiscal prices for the 32 cadastral areas and 5 administrative units of Tirana makes the level of the building tax more expensive for businesses as well.
Annual payments of businesses for the building tax will increase from 5 to 91%. Compared in value, the annual building tax that businesses pay with the fiscal prices of 2023 is almost 9 times more than the payments of family members for the apartment tax.
The formula for calculating the tax value of the building where the economic activity takes place, provides that the tax is 0.2% of the value of the store, while the value of the store in Tirana is calculated as twice the fiscal price per square meter of the apartments.
For other cities, the value price of shops is 1.5 times the price per square meter of apartments.
For district businesses, the building tax level does not change, as the reference prices, on the basis of which the value of the building is calculated, have not changed.
Specifically, if a store owner with an area of ??100 square meters located in the cadastral zone 1/1 where the reference price with the decision of 2018 was 97,700 lek per square meter paid annual tax for the building 39,080 lek (97,700x2x100 m2 the value of the store is 19,540,000 Lek.
The tax that is paid is 0.2% of the value of the shop calculated according to twice the fiscal price of the apartments for the cadastral zone 1/1 where the business building is also located).
With the increase in fiscal prices, specifically in the cadastral area 1/1, the reference price for 2023 is 102,800 ALL per square meter, the business will pay 41,120 ALL per year in tax. Compared to before, the tax has increased to the value of 2,040 ALL per year or 5% more.
While a family that owns an apartment with an area of ??90 square meters in the cadastral zone 1/1 (includes the areas from the "Ali Demi" Cinema, Sports Field, Shkozë village to the Water Reservoir) from 4,396 lek per year that paid tax for the building will pay 4,626 ALL per year. So the value tax is added 230 ALL per year or 5%. Compared to business payments, they are 9 times lower.
As for business buildings, the highest increase in the annual tax payment will be in the cadastral area 7/4, where the reference prices of apartments also increased by 76% compared to the levels of 2028. According to Monitor's calculations, if a business owns a store in this area with an area of ??100 square meters, the annual payments will increase to 23,800 lek per year or 91%.
According to the data of the Ministry of Finance, the annual collections of the building tax in Tirana are in the amount of 30 million euros per year, where 7 million euros are collected from households and 23 million euros from businesses.
With the new taxation in 2018, the government also included closed garages and basements. The tax for garages and basements is 0.2% of the value, but for garages and basements the tax is calculated as 70% of the fiscal price, for open parking as 30% of the fiscal price of apartments and processing warehouses for 50% of the price of the surfaces of housing in the respective area by city.
(For the calculation of the reference price per square meter of construction area for non-residential buildings, refer to Annex 2, of decision no. 132, dated 7.3.2018 "On the methodology for determining the taxable value of real estate "buildings", of the tax base for specific categories, the nature and priority of information and data for determining the tax base, as well as the criteria and rules for the alternative assessment of tax liability".)
The owner of a garage or basement with an area of ??50 m2 in the cadastral zone 1/2 (includes the areas from Poligrafik, Shkoza, Autotraktorët, Shkozë village, LanaBregas, Linzë, Sauk) used to pay 5,460 Lek per year. With the increase in the fiscal price of the area, the owner of the garage will pay 6,804 ALL in tax per year. The payments are added to the value of 1,344 ALL per year or about 25%.
AVERAGE PRICES PER SQUARE METER OF BUILDING SURFACE FOR NON-RESIDENTIAL BUILDINGS
a) The price per square meter of construction area for trade and service activities is 1.5 (one point five) times higher than the price of residential areas by city. In this category will also be included commercial buildings, where at the same time mixed processes of production, trading and/or retail services are realized. 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) The price per square meter of building surface for open parking is 30 (thirty) percent of the price of residential apartment surfaces by city.
ç) The price per square meter of building surface intended for industrial activity, such as: production, processing or storage of industrial goods, including factories, warehouses, warehouses and other similar facilities, is 50 (fifty) percent of the price of the surfaces of housing in the respective area by city.
d) The price per square meter of building surface 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 relevant area, excluding processing food.
dh) 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, 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.
e) For buildings privatized by law no. 7652, dated 23.12.1992, "On the privatization of state housing", 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./ Monitor