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Buying process
Knowing the Albanian Property market just as like any other market can be daunting and stressful. Through our site we try to give as much as possible information needed for all visitors.
Below you will read some of the most common questions.
The buying process in Albania follows this format:
• Once the reservation agreement has been signed, which will place the property on hold; there is usually a period of 4 weeks in which to carry out checks before the investor signs the main 'undertaking' contract. At the same time you will get in touch with our broker to apply for a mortgage allowing you enough time to prepare plus that you can get a Yes or No answer before paying any deposit down.
• After all the necessary details are provided, the contract will be drawn up by the solicitor and will set out timescales, payment terms, prices and the terms and conditions agreed.
The undertaking contract is signed in front of Notary Public by all parties in which they effectively promise to enter into a final contract to buy and sell the property.
• When the preliminary contract is signed the investor will usually pay a deposit of 30-40% of the price for off plan property (subject to each developer requirements). The remaining balance is then due prior to construction completion and payable in stage payments as set by the developers.
• Once the skeleton of the building has been completed the developers will normally register their property to the ZRPP (Registry office) for a pre-title that allows recognising the building/property and allowing clients to obtain finance for the value of that stage of the building. Otherwise finance can only be given if developer will have bank guarantees so be very careful and thoroughly check with your solicitor all the necessary guarantees are in place as well as get a confirmation from Bank before putting any deposit down.
• The Notary Public plays a major part in the process of buying and selling real estate in Albania. The notary is a public officer who is there to witness the signing of the contracts. Once the property has been completed the final purchase contract is signed transferring the right of ownership to the buyer. At this point it can be put on the public record which will show the official transfer of title to the buyer. Without notary stamp documents are not valid therefore is not legally recognised.
• The costs for the property title transfer by law should be paid by the developer.
• Once the final sales contracts are completed / exchanged, the buyer will transfer the remainder of the funds and obtain the title deeds in his/her/their name. At this point the property is legally completed and the buyer becomes the owner!
• Lawyer / Legal fees are around 800 Euro which include Notary fees, taxes and transfer fees.
NOTE: Always use an independent lawyer!
COMMON QUESTIONS ABOUT ALBANIA REAL ESTATE PURCHASE:
Do I need to create a company if I want to buy property in Albania?
Not if you buy an apartment or a house. Only if you intent to purchase a land or to have a commercial activity. The fees for creating a company are around 100-300 Euros (including creation, Registration, status, decision of court, notary fees etc). Then local & licensee taxes need to be paid aprox (€1000/year).
Who can own property in Albania?
Anyone can own a property in Albania. Personal ownership is the most common case for a foreigner purchasing in Albania. There is no need of creating a local company like neighbouring countries Montenegro, Romania,...
Any restrictions for foreign Investors?
There are NO restrictions for foreigners to invest in Albanian property (except for agricultural lands)
Is Co-Ownership allowed in Albania?
YES. There is an agreement to be signed by both co-owners (for more detailed information please email us).
Do local bank offer mortgage loans?
YES non-resident mortgage financing is available. Most of these banks are offering very competitive rates from as little as 5.5% for locals and from 7% (in Euros) for non residents with terms from 1 to 30 years with options of interest payment only. Many of these banks are offering 100% mortgages loan to local buyers. For foreigners specific favourable terms are applicable and some banks do not request client to come over to Albania so the process can be done online or through our Broker (Broker is recommended as it is hassle free).
Do I need an Lawyer to buy a property in Albania?
(Independent legal advise is strongly recommended) Attorneys can provide valuable services to purchasers of Albania real estate such as document review, verification of title deeds, translation, drafting of contracts, tax tips, PoA, etc.
What is the cost of the Public Notary?
Normally the fees depend on the service, size of the property and total price. In most cases Independent lawyer do cover notary fees but the cost is around 40-70 euros for a transaction of €100’000. There is a notary fee t o be paid when the final sales contract does take place which is also around 40-70 euros.
Is there an Albanian official real estate property registration office?
YES this office called ZRPP (State office of registration of property) is properly run and manages a clear and fully acknowledged ownership history for each lot.
What are the other costs linked to a purchase?
There are no other costs invlolved by the buyer. There are some expenses to be paid to ZRPP, but in most cases aprox 500 Euros which should be paid by developer.
What are the commissions?
We do not charge clients any commission. We get paid through sellers/developers.
Do you offer Property management services?
YES. Through our three Albania offices that have been operating for over 10 years we offer for overseas as well as local owners rental, provide property maintenance services if required and re-sales.
Do I have to pay state or local taxes on my property?
From 1st of January 2008 was announced the flat fee rate 10% capital gains tax. Albania is one of the countries with the lowest fiscal burden.
Do I have to pay a tax on rent?
A tax of 10% is due on the amount of the rent starting from January 2008.
What is the level of inheritance/gift taxes in Albania?
There is NO inheritance tax and gift tax is 3%! In case of personal ownership it is desirable to make a will in respect to your Albanian property as soon as you become the owner.
Cost to run an apartment?
Costs will depend on how large the property is. For apartments the cost is €3 to €5 per m2 per YEAR!
Certainly this page cannot cover everything, so please feel free to contact us if you need further information.
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Albania property, real estate investment and holiday destination.
A Mediterranean country with beautiful frontage on both the Adriatic and Ionian seas and its great landscape and long range mountains, Albania is a country that is attracting a lot of attention from international property investors, large corporate companies and holidaymakers.
Albania offers spectacular scenery and views, hundreds of kilometres of unspoiled and undeveloped pristine sandy coastlines, white sandy beaches, mountains, archaeological sites, ancient monuments and castles. Albania is a key holiday destination for Kosovans and Macedonians.
Albania is totally undiscovered by westerners and it is actually considered the last Emerging market in Europe to be developed. Albania offers a fascinating history that includes initial settlement by the Illyrians and eventual, Romans, Venetians, Byzantines and even Ottomans.
Another surprising factor is that Albanian people are very welcoming and friendly and offer a great hospitality.
The growing tourism industry, stable government and emerging property market are coming together to make Albania a land of interest for buyers. Albania Properties has outlined some of the best reasons why to invest in Albania.
Albania has a democratically elected government. Whilst reforms are ongoing, Albania and its government have made progress in recent years and showing signs of improvement, combating corruption, crime and bringing stability, foreign investments, joined NATO and expected EU membership in five years.
Albania is a member of NATO’s Partnership for Peace Programme and received the invitation to join a full membership within the alliance. Albania has even offered troops to support in Bosnia and Herzegovina, Afghanistan, Iraq and other regions. Albania is a member of the Council of Europe, the World Trade Organisation, the United Nations and the South East Europe Cooperation Process and other organisations.
Albania’s goals and desire to take part in the international community, cross Atlantic and the EU, shows stable political environment which is very appealing to investors who want to invest into all sectors in Albania, such as Albania property-Real Estate, energy, commercial, industrial, minerals etc. The European Union has invested over a billion Euro so fare for Albania’s improvement of infrastructure and services.
Albania is undergoing huge improvements in infrastructure and developments, which is attracting foreign industries and companies to invest in Albania. The newly opened (in 2006) Tirana international Airport is being approved to be extended again due to the increasing travel demands by visitors, tourists and investors. The largest highway which will link Durres with Kosovo is expected to complete end of 2009, full renovation and an extension of Durres Port (the largest in the country). This will be the hub connection between Italy and the Black Sea region.
Property prices in Albania are the cheapest in all of Europe. Beachfront apartments starting from just £19,500 and capital city of Tirana, apartments cost from only £19,000. The key hotspots offer high capital growth and there are potentials for good rental yields. As the country continues to develop its tourism industry and infrastructure, the prices are not forecasted to remain low for long so this is the right time to buy property in Albania.
Prices for off-plan properties are ranging between EUR 500 to 800 per square metre. One and two bedroom apartments are starting at around GBP 19,000. These prices are very low and competitive compare to other developing hotspots such as Montenegro, Croatia and Morocco. Albanian Property prices are also the cheapest in Europe.
Albania’s natural attractions and nearly 400 kilometres of coastline along the Adriatic and Ionian seas offer a rare opportunity for investment or holiday breaks. The climate of Albanian is mostly Mediterranean and in some northern and eastern regions can be cold and snow in the winter which offers a great combination. This makes the Albanian property market very attractive for buy to let investors.
Albania also offers a strong local market demand buying and renting so for those looking for short-mid term investment can profit form the re-sale and the capital growth appreciated in Albania property and real estate offers good exit strategy.
None resident and commercial finances are widely available now offered by the largest European banks such us Societe Generale, Intesa Sanpaolo, Raiffeisen etc. Building costs and labour costs are cheap in Albania. Building permission can be obtained quickly and the process is straightforward. Albania lacks of resorts, golf courses, high end hotels is a great opportunity even for developers to invest in Albania.
Furthermore, due to the current market conditions in the Eastern and Western European markets, Albania has never been in a better position to offer safe and cheap property prices and is attracting huge numbers of investors as it is currently the only stable property market. Albania is benefitting from low property prices and stable economy growth.
Currently Albania Properties is offering a selection of beachfront apartments, capital city apartments, beachfront lands fit for any purpose such as golf resorts and houses.
The further benefits of investing in Albania are: No purchase tax, No VAT, only 10% capital gains tax on property when selling, 10% corporate tax for companies.
Some of the properties on the market include apartments and property in Tirana, property in Durres, property in Saranda, property in Vlore, beachfront Albanian Real Estate, beachfront lands in Albanian coast and Tirana lands, commercial property in Tirana, golf resort property in Durres and other coastal sites in Vlore and Sarande, Albanian estate agents looking after rentals and managements and many more.
Albania Properties being Albanian Agents based in London and local offices in the main cities of Albania and the coast can give valuable information and support to all property buyers, investors and holidaymakers.
Contact Albania Properties for more information on: www.albania-properties.co.uk or www.holiday-property.net.
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