For the first time, the government includes villages in the reference price map. They are equated with district references

2026-01-16 08:41:45Biznes SHKRUAR NGA REDAKSIA VOX

The government is reviewing the draft decision on the reference prices of residential buildings in districts. For the first time, the reference price map will include all rural areas of Albania, according to the country's territorial division into urban/rural.

According to the draft decision, the reference prices for rural areas are proposed to be the same as the current unchanged reference prices that apply today to cities.

Monitor publishes maps and tables with the government's proposals for reference prices for residential buildings, according to the territorial division in the Republic of Albania (Cities/villages).

To clarify for individuals the changes in the reference prices of residential buildings, the Council of Ministers Decision No. 132, adopted in 2018, which divides the districts into 67 reference price zones, is currently still in force.

The proposed changes in July 2025 envisaged the addition of 59 new zones, bringing the total number of zones to 116. The proposed increase included only the country's urban areas and has not yet been approved by the government. With the latest review that a working group is making of the draft decision, the reference prices are divided into a total of 176 zones. The new zones being added are rural areas where the government proposes to have fiscal prices at values ??equal to the current district prices. Currently, for rural areas in the country, municipalities use the reduced price of up to 35% of urban areas.

Specifically, VKM no. 132 dated 7.3.2018, (amended in July 2023 only for Tirana prices), for districts determines that the price per square meter of residential construction area in 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 by up to 35% compared to the price of the nearest area, excluding residential areas. While in Tirana for rural areas, the reference price is reduced by 30%.

With the new proposed changes, municipalities will no longer have the right to reduce reference prices for rural areas, but will be forced to implement the new prices that the government proposes. The amended draft decision is expected to be approved by the government.

What prices are proposed for rural areas?

The working group that is drafting the new reference prices explained to Monitor that based on the territorial division of the country into urban and rural areas, it has been proposed that the reference price map be divided into price values ??for urban and rural areas. However, since the reference prices are based on the sale value of properties on the ground, some coastal areas of the country that are experiencing development for residential buildings have been divided into several cadastral zones with different reference prices also included in urban and rural areas.

For example, currently the reference price for the city of Durrës is 67,500 lek per square meter. In the new draft decision published for public consultation in July 2025, it is proposed that Durrës be divided into 13 cadastral zones for reference prices, with values ????ranging from 45 thousand lek to 200 thousand lek per square meter (the price of 200 thousand lek is for the Port area where the “Durrës Yachts Marina” project is being built). Within the total areas of the Municipality of Durrës, Lalzit Bay and Hamallaj will also be included, which will be divided into 4 zones for reference prices.

The map of Lalzi Bay and Hamallaj divides the area into 4 cadastral zones with different reference prices per square meter of residential construction, located in strips from the sea towards the interior. Zone 6 (the first coastline in Lalzi Bay) has the highest reference price, 190 thousand lekë per square meter, reflecting the intensive tourist development and the highest market value. Zone 7, immediately after the first coastline, has a reference price of 90 thousand lekë per square meter. While zones 8 and 9, which are more inland areas, the proposed prices will be 45 thousand lekë and 50 thousand lekë per square meter.

Based on the territorial division of the country into urban and rural areas, it is proposed that all rural areas of Durrës, i.e. villages, have a different reference price than urban areas. For rural areas, a reference price of 67,500 lek per square meter has been proposed, i.e. the same as the current reference price for the city of Durrës. This reference price that the government has proposed for the rural area of ??Durrës also includes the area behind the coastline and the area of ??Lalzi or Hamallaj.

The same logic for setting reference prices has been followed for other coastal areas where many residential areas are being developed.

Several coastal areas of the country that are experiencing development for residential buildings have been divided into several cadastral zones with different reference prices, including urban and rural areas.

The reference price for buildings on the Radhima coastline is proposed to be 90 thousand lek per square meter, which in the revised tables is included in the reference prices of the Radhima and Orikum urban areas (see maps).

While the rural area of ??Vlora, which is added as new area no. 8, including that of Radhima (without the first coastline), will have a reference price of 61,800 lek per square meter, equal to the current price of the city area for the Municipality of Vlora.

The reference urban price map for Saranda also includes the Ksamil coastline with reference prices that will range from 60 thousand lek to 100 thousand lek per square meter.

With the proposed changes, a new area is added to Saranda that includes villages with a reference price of 56 thousand lek per square meter, equal to the current price of the city of Saranda.

Building tax obligations will also increase for rural areas

The new reference prices will be used to calculate the liabilities of individuals and businesses for the building tax, the infrastructure impact tax, and the asset revaluation process will be carried out.

As happened in Tirana with the entry into force of new reference prices in August 2023, the changes brought an increase in the building tax liability for individuals and businesses and an increase in the infrastructure impact tax liability.

With the entry into force of the reference prices, the obligation for the building tax will increase not only in districts, but also for rural areas. The changes in the reference prices will increase the obligation for the building and infrastructure tax to the same extent as the increase in the reference prices, since the basis for calculating the tax, which is the value of the property, is calculated according to the reference prices.

According to the draft decision that was published in July 2025 in Public Consultations, from the increase in reference prices in the districts, the Ministry of Finance expects to collect 2.6 billion lek or about 27 million euros in revenue from the increase in the obligation of both taxes.

The infrastructure impact tax is expected to generate around 1.8 billion lek, while the building tax is estimated to contribute around 868 million lek.

After the references come into force, how much will the building and infrastructure tax liability increase?

The building tax liability for individuals will automatically increase to the extent of the increase in reference prices.

In Durrës, for example, a citizen who owns a residential house with an area of ??60 m2 in cadastral zone no. 11 currently pays a liability of 2,025 lek per year or 168 lek per month through the drinking water bill for the building tax. After the entry into force of the reference prices, the liability for the house tax will reach 6,000 lek per year or 500 lek per month.

The tax liability automatically increases by the increase in references to the extent of 196% for this area.

At the same level, the obligation for the building tax for the business, that is, for the environment used for the purpose of commercial activity, will also change. If a business has a shop with an area of ??90 m2, it will pay 36,000 lek per year from 12,150 lek.

Even for the calculation of the infrastructure impact tax, the tax base is the value in lek per square meter of the sales price of the construction, whether for residential or service purposes. The sales price per square meter is based on the reference values ??determined in the methodology approved by the government. For the city of Durrës, the rate of this tax for residential constructions that are not intended for tourism, industry or public services is 8%, according to the decision on the system of local taxes and fees, approved in December 2022.

In a concrete example, for a residential building with an area of ??100 thousand square meters, located near the port of Durrës, the infrastructure impact tax liability, calculated at the current reference price, is around 540 million lek. With the entry into force of the new reference price from January 1, 2026, the liability for the same building will reach around 1 billion lek, reflecting the proportional increase in reference prices.

Significant increases in reference prices are also predicted for other coastal areas, such as Himara, Saranda and Vlora. With the new map, Himara is divided into 5 cadastral zones, where the highest increase, of 141%, is predicted for zone no. 1, bringing the price from 58 thousand to 140 thousand lek per square meter. Saranda is also divided into 5 zones, where for zones no. 1 and no. 3 the reference price reaches 100 thousand lek per square meter, or 78.6% more than the previous price.

Vlora will also be divided into 7 cadastral zones, four of which are within the city, while the other zones include Radhima, Orikum and the island of Sazan. The highest increase in reference prices in this municipality is predicted precisely for the island of Sazan.

Sazani, a reference area for the first time

Sazan Island, which has not been a residential area until now, is included for the first time as a cadastral area in the map of the methodology for calculating the building tax. This comes after the presentation of the residential project developed by the company “Affinity Partners”, owned by entrepreneur Jared Kushner. For Sazan Island, the reference price is set at 200 thousand lek per square meter, or about 233% higher compared to the previous reference price for the city of Vlora.

The revaluation of assets in the districts will be done according to the new reference prices.

The process of revaluation of real estate in the districts, both for individuals and businesses, will be carried out using the new reference prices.

This applies to both forms of property valuation. Market value, conducted by licensed experts, where the prices used cannot be lower than the reference prices.

With reference price, carried out by application at the offices of the State Cadastre Agency (ASHK), where the new reference prices are also used.

This means that all entities carrying out the revaluation, whether individuals or businesses, will use the new reference price base to determine the value of their assets.

The Law on the Revaluation of Real Estate has been published in the Official Gazette, but its implementation is awaiting the approval of sub-legal acts. 

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