Albania’s Tax Administration has intensified its fight against fiscal evasion, with a particular focus on the construction and real estate sector, where authorities say significant undeclared income continues to distort the market and reduce state revenues.
In the latest enforcement action, inspectors have finalized a second major case revealing approximately €5.4 million in undeclared income linked to commissions in real estate agencies, highlighting persistent tax evasion practices within the property market.
Fiscal Evasion at the Core of the Investigation
From the outset, the Tax Administration has framed its operations as a direct response to fiscal evasion, particularly in high-value sectors such as construction and real estate.
According to official findings, financial investigations, audits, and data analysis uncovered discrepancies between declared revenues and actual income flows within real estate brokerage activity. These gaps point to systematic underreporting of commissions and attempts to reduce taxable obligations.
Authorities argue that such practices not only undermine public finances but also distort fair competition in the property market.
Real Estate Agencies Under Pressure
The main focus of the investigation has been real estate agencies, which play a central role in property transactions across Albania’s rapidly expanding housing sector.
Inspectors identified undeclared income generated through commission-based transactions, suggesting that parts of the brokerage network may have operated with incomplete or intentionally reduced fiscal reporting.
The €5.4 million figure represents only the finalized case so far, with further investigations reportedly ongoing.
Construction and Property Market Link
Fiscal evasion concerns are not limited to real estate agencies alone. The Tax Administration has extended its scrutiny to the broader ecosystem, including:
- Construction companies
- Property developers
- Subcontractors
- Commission-based intermediaries
Given the close link between construction projects and property sales, authorities say the sector creates multiple points where income can be concealed if oversight is weak.
Continued Crackdown on Undeclared Income
The Tax Administration has confirmed that enforcement actions will continue across all entities suspected of fiscal evasion.
Control measures include:
- Targeted financial audits
- Cross-checking of transaction data
- Risk-based analysis of reported revenues
Officials emphasize that any attempt to hide income or avoid tax obligations will face administrative and legal consequences.
€5.4 Million in Undeclared Commissions
The finalized case uncovered approximately €5.4 million in undeclared commissions generated within the real estate sector.
According to authorities, the result reflects improved detection mechanisms and stronger coordination between financial analysis units and field inspections.
Further cases are expected to be processed as investigations continue.
Fiscal “Peace” Offer vs. Enforcement
Alongside strict enforcement, the Tax Administration has reiterated its willingness to offer a form of “fiscal peace”, encouraging taxpayers to voluntarily declare hidden income and regularize their financial activity.
However, officials stress that this approach does not replace enforcement. Instead, it operates in parallel with ongoing anti-evasion operations, ensuring that compliance is achieved either voluntarily or through control measures.
Real Estate Market Growth and Compliance Challenges
Albania’s real estate sector has experienced rapid expansion in recent years, driven by urban development, foreign investment, and rising property demand.
But this growth has also brought increased attention to fiscal compliance risks, particularly in commission-based transactions where income can be more difficult to track.
Authorities argue that without stronger enforcement, fiscal evasion could continue to undermine both market fairness and state revenue collection.
The discovery of €5.4 million in undeclared income reinforces the Tax Administration’s ongoing message: fiscal evasion in the real estate and construction sector is under active and expanding scrutiny.
As investigations continue, Albania’s property market remains at the center of a broader effort to tighten compliance, reduce informal activity, and ensure that rapid economic growth is matched by fiscal transparency.