A proposed decision by the Municipality of Tirana aims to expand the categories of businesses subject to local taxes and fees, including the education infrastructure tax and the cleaning fee, to also include daily rental accommodation structures such as Bed & Breakfasts (B&Bs) and guesthouses.
Until now, these charges applied only to hotels and motels, calculated on a yearly basis depending on the number of rooms and the annual turnover. The new proposal suggests that B&Bs and guesthouses — typically smaller, family-run operations — should also be included under the same tax regime.
New Inclusions Under Local Tax System
The proposed amendment to the local tax and fee system in Tirana, titled "On Some Additions and Changes to the System of Local Taxes and Fees in the City of Tirana", suggests that the label “B&Bs, guesthouses” be added to the category of “Hotels, Motels,” which previously encompassed only large-scale hospitality businesses.
This means that B&Bs and guesthouses operating on a daily rental basis will now have to pay both the Cleaning Fee and the Education Infrastructure Tax, calculated based on their annual turnover.
How Will the Cleaning Fee Be Calculated?
Under Decision No. 158, dated 26.12.2019, the cleaning fee is a fixed annual obligation, but it varies according to the business turnover:
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Turnover from 0 to 2 million ALL:
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Cleaning fee: 5,750 ALL/year
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Turnover from 2 to 8 million ALL:
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Fixed fee: 11,500 ALL/year
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Plus: 1,150 ALL per room
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Example: A business with 5 rooms would pay 11,500 + (5 × 1,150) = 17,250 ALL/year
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Turnover above 8 million ALL:
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Fixed fee: 34,500 ALL/year
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Plus: 1,725 ALL per room
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VIP Businesses:
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Fixed fee: 69,000 ALL/year
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Plus: 2,900 ALL per room
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Education Infrastructure Tax for Service Units
This tax is also based on the annual turnover:
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Turnover from 0 to 2 million ALL: 2,500 ALL/year
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Turnover from 2 to 8 million ALL: 4,000 ALL/year
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Turnover above 8 million ALL: 17,000 ALL/year
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VIP Businesses: 32,000 ALL/year
These taxes, once applicable only to traditional hospitality businesses, will now impact a much broader segment of the accommodation industry, including smaller and often informal operators.
Additional Proposed Changes
The proposal also includes updates to other business categories:
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Pharmaceutical Warehouses:
The phrase “pharmaceutical depots registered as small businesses” will be removed from the “retail sales” category. These depots will instead be reclassified under “wholesale businesses,” such as warehouses and bulk sales outlets, due to the nature and scale of their operations. -
Artisan and Repair Services:
Clarification is added for categories like carpenters, tailors, cobblers, hairdressers, and watch repairers, now also including painters and plumbing-related services, which cannot be considered part of the construction sector. -
Private Education and Medical Services:
For private educational institutions (schools, kindergartens, nurseries), medical specialty clinics, and diagnostic laboratories, it is proposed to remove the clause that exempts them from certain taxes based on VAT registration thresholds, as it creates inconsistencies with the VIP turnover classification.
Conclusion
If adopted, this project decision will mark a significant change for the local taxation landscape in Tirana, especially for small and medium-sized accommodation providers. It reflects the municipality’s intent to broaden the tax base and increase fairness across different types of businesses, ensuring that all entities benefiting from municipal services contribute accordingly.