Property tax, 49% of the total is collected only in Tirana - 79% is occupied by buildings, transactions "hold" only 8%
Municipalities collected approximately 8.1 billion lek or about 81 million euros from property taxes last year, constituting about 18% of the total local government revenues.
Compared to a year ago, about 474 million lek were collected, or 6.1% more.
Referring to the Local Finance report for 2025, of this amount, the Municipality of Tirana alone has secured around 3.9 billion lekë, or 49% of the income from this source at the national level, reflecting a significant concentration of the property tax base in the capital. While the other half is divided among 60 municipalities, making the weight of this tax in their budgets very low despite the constructions that these territories have.
The wealth tax has increased by 146% compared to 2015, however, its share remains relatively modest compared to the potential.
According to the report, the building tax accounts for about 79% of total property tax revenues, 9% is accounted for by agricultural land taxes, 8% by taxes on transactions carried out with real estate, and 4% by land taxes.
Starting from 2027, the Fiscal Cadastre is expected to be fully operational, consolidating all information on housing according to ASHK data. This consolidation will bring more revenue, which according to the Ministry of Finance, is projected to increase by at least 20%. Meanwhile, a draft law on the taxation of real estate in Albania, at market value, has been submitted for public consultation, which will bring a significant increase in revenue from this item in local budgets.
During this year, local government has collected about 44.8 billion lek in its own revenues, of which about 40.9 billion lek or 91% are revenues from local taxes and fees and the remaining 3.9 billion lek or 9% are non-tax revenues.
This ratio is stable compared to the previous year. In annual terms, local own revenues in 2025 increased by about 368 million lek, or 0.8%, compared to 2024. The source with the largest share in the composition of local own revenues is the infrastructure impact tax, which accounts for 37% of the total of these revenues.
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