New bill for the building tax: from reference prices to apartment area! How much will be paid

By 2026, all municipalities are expected to be integrated into the new Fiscal Cadastre IT system, which will automatically calculate the building tax liability for both individuals and businesses.

This system will be used by municipalities to generate building tax bills, which will include detailed information about the apartment area, the taxable base value, and the reference price per square meter. Detailed data on real estate properties will be uploaded by the municipalities and automatically processed in the system.

In the user manual for the Fiscal Cadastre IT system, prepared by the General Directorate of Property Tax, the new model of the building tax bill has also been published.

Unlike the current bill, the new bill will include more details on how the tax liability for individuals and businesses is calculated.

The new bill will display information such as the building unit number, the property number registered with the State Cadastre Agency, the reference price according to the cadastral zone of the property, the apartment area, the taxable value of the property (calculated from the reference price and area), as well as the building tax liability.

A concrete example from the Shëngjergj area in Tirana shows that for an apartment with a 76 m² area, a reference price of 23,000 Lek/m², and a tax rate of 0.05%, the taxpayer’s liability is calculated at 874 Lek for 2026.

The bill does not include fines or interest, and the payment deadlines are clearly specified.

The bill includes the municipality logo, taxpayer and building unit details, the bill number, account codes for payment, and the amount due.

Currently, the building tax for individuals appears on the water bill and is paid monthly. For businesses, the tax is paid in two installments: the first by June 30 and the second by October 31.

The system is not yet fully integrated with all municipalities, but it is expected to include all administrative units in the country by the end of 2026.

According to the manual, within the system, data is organized by building unit number, and users have the option to sort it according to various attributes such as: building unit number, property number in the State Cadastre Agency (ASHK), area, value category, ASHK use, municipality, administrative unit, street, cadastral zone, entrance, floor, door, and active status.

The user manual explains that the system allows for the registration of taxpayers for building units that do not yet have taxpayer data, using personal identification numbers for citizens, business numbers for commercial entities, as well as registering foreign taxpayers.

The methodology for calculating property value is based on the area, average reference price, category coefficient, and privatization coefficient for residential properties. For units used for housing that lack area data, an assumed area is used. The property value is determined as the highest among several different values, including the assessed value in mass appraisal, the value in the ZRPP (real estate registry), the sale price, the self-declared value, and the construction cost for unfinished buildings.

The tax base is multiplied by the tax rate approved by the local government units according to categories: 0.05% for residential properties; 0.2% for economic activities; 30% of the rate for unfinished properties with a construction permit.

Local units can approve zonal sub-rates to adjust the rate within a ±30% range.

In cases where a property has more than one taxpayer, the tax liability is divided proportionally among them.

The population and monitoring of the data will be carried out by the General Directorate of Property Tax, ensuring accurate and sustainable management of the tax collection process.

By 2026, approximately 2.5 million real estate properties are expected to be registered in the Fiscal Cadastre.

Meanwhile, the implementation of the new property tax, initially planned to take effect in 2026, will be postponed by two more years and is now expected to begin in 2028.

The Ministry of Finance has announced that a completely new draft law is being prepared, which will be approved in 2026 and will come into effect together with the Fiscal Cadastre in 2028. The delay follows consultations and necessary preparations to build a new taxation system based on the market value of real estate properties.

“KORÇA BOOM”