15% tax on property donated within the family removed in Albania, here are the conditions

 

 The Albanian majority decides to abolish the 15% tax on cases of property donation within the family but in a different way. At the parliamentary committee on Economy, the two Socialist MPs Evis Kushi and Sadi Vorpsi proposed the amendment that stipulates the non-application of a tax on cases when a house or property is donated. Presenting the proposal, the Socialist Kushi said that "the proposal comes only when a single apartment is donated, and the land when the cadastral value is up to ALL 30 million".

But MP Kushi said this tax exemption is limited, as it applies only when the parent donates the child, or when the husband donates to the wife (or vice versa). “We made this proposal only for the first apartment, that it could be a builder that has 10 apartments. There may be a builder who owns 10 apartments and may want to give to a child or a spouse, but this cannot be applied with this amendment,” Kushi points out.

In the proposal of the Socialists in the original variant was put a limit, when the value of the apartment amounts to ALL 30 million. If the cadastral value is above this value we propose that the contribution be 3% for the value above 30 million.

At the meeting of the Parliamentary Committee on Economy, there were proposals by the opposition MP, Artur Roshi, that this exclusion should not focus on dwellings and land, but also on real estate objects that are business buildings. "That would be a criminalization and demoralization for the business, I say, to extend it. I also think that should be studied if those owners do not have first or second heirs, what will be done?" Roshi stressed. But the opposition MP's proposal was rejected by the majority as well as representatives of the finance ministry.

After much discussion, it was decided together with the understanding of the Ministry of Finance to abolish the ALL 30 million limit and leave it without limits. Whereas the act of donation is only for one dwelling from parent to child, as well as from husband to wife (as well as vice versa), as well as a piece of the plot. The proposal is expected to be approved at the next parliamentary session.

The 15% tax levied by the government on cases of acts of donation not only to the sale of real estate had created problems, as many family members did not perform the acts of transfer of inheritance ownership because they had to pay significant amounts of values in cash. This intervention is expected to unblock the process of transferring ownership to first-degree heirs.

We remind that this move comes some weeks after Switzerland removed the anonymity for bank accounts from Albania.