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.