Revaluation of Real Estate Assets in Albania

 

 

Legal Framework, Procedure, and Practical Implications

In 2026, the revaluation of real estate assets in Albania represents an important fiscal instrument aimed at aligning property values with current market prices and improving their tax treatment. This measure offers a significant opportunity for both individuals and businesses to optimize asset management and enhance financial transparency.

Legal Framework

The revaluation process is governed by a structured legal framework, including:

  • Law No. 85/2025 “On the Revaluation of Real Estate Assets”, which serves as the primary legal basis;
  • Law No. 8438/1998 “On Income Tax”, as amended;
  • Secondary implementing regulations that define the procedures and operational requirements.

This framework establishes the conditions, timelines, and methods for applying the revaluation.

Definition of Revaluation

Revaluation is the process of updating the recorded value of a real estate asset to reflect its current market value. This updated value is officially registered and directly impacts the tax treatment of the property, particularly in the event of a future sale.

Eligible Subjects

The revaluation procedure is available to:

  • Individuals who own real estate assets;
  • Companies holding real estate within their balance sheet;
  • Owners intending to transfer or sell their property.

Revaluation Procedure

The procedure consists of several key steps:

a. Documentation verification
The applicant must possess valid ownership documentation, such as property certificates and cadastral records.

b. Determination of the new value
The updated value is established based on prevailing market prices.

c. Application submission
The request is submitted through the official e-Albania platform or relevant competent authorities.

d. Payment of the tax
According to Law No. 85/2025, a reduced tax rate is applied to the difference between the old and the new value.

e. Registration of the new value
Upon completion, the updated value is officially recorded in the relevant registers.

Legal and Tax Implications

The revaluation process provides several benefits:

  • Reduction of capital gains tax upon sale;
  • Formal recognition of the property’s real market value;
  • Improved financial position for businesses;
  • Greater transparency in real estate transactions.

Key Considerations

When applying the provisions of Law No. 85/2025, attention should be given to:

  • Compliance with the established deadlines;
  • Accuracy of the declared value;
  • Completeness of documentation;
  • Adherence to applicable tax regulations.

The 2026 real estate revaluation in Albania, under Law No. 85/2025, represents a valuable opportunity to optimize tax positions and formalize asset values. Proper application of the procedure is essential to fully benefit from the advantages provided by the law.