Revaluation of properties, how much will Albanians pay? What are the reference prices according to areas in Tirana

2024-05-25 10:59:40Biznes SHKRUAR NGA REDAKSIA VOX

Socialists have returned after two years the revaluation of properties. The initiative has been filed in the form of a draft law in the Assembly by the socialist deputy Blerina Gjylameti and is expected to be examined in the parliamentary committees. But what does the draft provide?

From the moment it is approved, the revaluation will be valid until June 31, 2025. The tax to be paid is expected to be 3% from the current 15%. All properties can be revalued, including those in the process of legalization, and what is aimed at is the formalization of the real estate market.

Let's see this initiative translated into a concrete case.

An apartment bought a few years ago at a price of 7 million ALL, today costs 11 million ALL with the market value. So, 4 million ALL more. In order to do the revaluation, the owner must pay today 15% of this difference, which is calculated at 600 thousand ALL. With the 3% tax that is proposed to be reassessed, the cost that this citizen will pay is 120,000 Lek or 480,000 Lek less.

But the whole process also has an impact on the property tax, which is paid every month on the water bill. The tax is paid on the value of the apartment and the revaluation leads to an increase in the value of the property and therefore, also the tax. Let's see it concretely in an example.

We have an apartment that costs 10 million ALL. The tax we pay today for this property is 0.5% of its value or 50 thousand ALL per year, which is calculated as 4,166 ALL per month.

After the revaluation, this apartment will cost about 15 million ALL. The tax will be 0.5% of this value or 75 thousand ALL per year, calculated at 6,250 ALL per month. So, after the revaluation, the tax of this property increased by over 2,000 Lek every month or over 25,000 Lek per year.

The proposed reassessment is an initiative undertaken several times in the past.

In the last 13 years there have been 5 property revaluations and all have taken place before local or general parliamentary elections, with rates ranging from 1% in 2011 to 3% the last two revaluations. The initiative is proposed again before the general elections, scheduled for next year.

But have the citizens benefited from these revaluations? Let's see what happened with the latest initiative.

The revaluation took place from January 2020 to August 2022, with a 3% tax. Over 162,000 properties were reassessed, as the government benefited from ALL 12.7 billion in revenue from the entire process. / A2