The Albanian government is considering a new property tax reform that could significantly increase tax obligations for individuals who own more than one residential property.
Under the proposed framework, primary residences would continue to benefit from tax relief measures, while second and additional homes could be subject to higher tax rates. The reform is part of broader efforts to modernize Albania’s property taxation system and align property valuations more closely with actual market prices.
According to reports, homeowners with multiple properties may face tax increases of up to 50 percent compared to current levels. The proposal aims to differentiate between primary residences used for living purposes and additional properties held as investments or left unoccupied.
The reform would also introduce changes to the way taxable property values are calculated. Instead of relying on outdated reference prices, authorities are expected to use valuations that better reflect current market conditions. As a result, property owners in areas where real estate prices have risen sharply could see a noticeable increase in their annual tax bills.
Real estate experts argue that the changes could have a significant impact on investors and families owning multiple homes, particularly in major cities and coastal areas where property values have increased substantially in recent years.
Supporters of the reform say the new system would create a fairer tax structure by providing greater relief for primary residences while ensuring that owners of additional properties contribute more to public revenues. Critics, however, warn that higher taxes could discourage investment in the real estate sector and place additional financial pressure on some property owners.
The proposed changes are expected to generate further debate as authorities move forward with discussions on the future of property taxation in Albania. If implemented, the reform would represent one of the most significant changes to the country’s property tax system in recent years.