Short-Term Rentals in Albania: New Tax Reporting Obligations from 2026

 

 

 

As of January 1, 2026, individuals in Albania who rent out residential properties for short-term stays will be subject to a new fiscal obligation, marking a significant step towards formalizing this rapidly growing segment of the housing and tourism market.

This development introduces a simplified yet structured process for non-professional landlords—particularly those offering apartments or homes for daily or short-term rental through platforms such as Airbnb, Booking.com, or direct agreements.

A Simpler Approach to Tax Compliance

One of the key advantages of the new framework is that individuals will not be required to open a business tax number (NIPT) in order to legally rent out their properties on a short-term basis. This removes a significant administrative burden that has previously discouraged many from entering the formal rental market.

Instead, income generated from short-term leases must be declared via the DIVA platform, the Albanian digital tax system designed for individuals. This platform streamlines tax declaration procedures and ensures that citizens remain compliant with national fiscal regulations.

The income from these rentals will be subject to a flat tax rate of 15%, calculated on the total amount earned. The simplicity of the rate—without additional deductions or complications—makes the process more accessible for those who may only occasionally rent out their homes or vacation properties.

Why This Change Matters

This move by the Albanian government aims to increase transparency in the short-term rental market, which has seen exponential growth in recent years, particularly in urban centers and coastal areas. Until now, much of this activity remained unregulated, leading to inconsistencies in tax compliance and a loss of revenue for public finances.

By formalizing the sector, the state not only seeks to expand its tax base but also to create a more level playing field between traditional hospitality providers and private renters.

Responsibilities and Potential Penalties

While the new framework is designed to be less burdensome, it does introduce clear responsibilities for individuals:

  • All income from daily or short-term rentals must be accurately declared within the deadlines set by the tax administration.

  • Non-compliance—such as failure to declare income, delayed submissions, or underreporting—can result in financial penalties, audits, or legal complications.

To avoid such risks, individuals are strongly advised to stay informed about the rules and deadlines. When in doubt, consulting with a tax advisor or accountant can help ensure that all legal obligations are met properly.

This regulatory shift signals Albania’s intent to modernize its tax system and bring informal economic activity under legal oversight—without overwhelming private citizens with complex bureaucracy. For many, it represents an opportunity to continue renting legally, transparently, and with minimal administrative hassle.

As tourism continues to grow and the demand for flexible accommodations increases, this new measure creates a clear and fair framework for short-term rental activity. It promotes responsible participation in the market and reinforces the principle that tax compliance doesn’t have to be complicated—only consistent and transparent.