“Protax Albania” Advances Fair and Efficient Property Taxation

Today, Albania introduced its property and real estate tax reform. This is a significant step toward establishing a modern property tax system in our country. Thanks to this system, which is based on the market value of real estate and increases the role of municipalities in collecting this significant tax, Albania will move closer to the European Union.
As part of this reform, the Ministry of Finance’s “Protax Albania” project, developed in cooperation with the Swedish Development Agency, has been successfully completed. The project was presented at a special event attended by Minister of Finance Petrit Malaj, Minister of State for Local Government Ervin Demo, and leaders of financial institutions in the country. The project was also attended by international partners who collaborated on it.
Ervin Demo, Minister of State for Local Government, stressed that the tax reform sets a new standard of justice and openness in its commitment to citizens. “All mayors were highly motivated to implement this proposal. The process that followed was difficult, with many moving parts and numerous institutions collaborating to create a sustainable system that enables communities to maximize their potential for local property tax revenue,” he said.
Property tax reform will begin in 2026. Municipalities will administer revenues to improve local services and provide better services to citizens.
Petrit Malaj, the Minister of Finance, said that completing the “Protax Albania” project with Swedish partners is the next step in reforming the taxation of real estate based on market value. This will make market value the primary source of revenue for municipalities. “This project is particularly important and entirely linked with the changes that the Albanian government is implementing as part of its EU membership process. Our main goal is to ensure fair and efficient property taxation in Albania and strengthen the role of municipalities in collecting one of the most important taxes in the region and beyond,” stated Minister Malaj, noting that this tax will provide municipalities with financial independence.
“Property taxes should be the most significant source of revenue for local governments. Rather than viewing its collection solely as a source of money for municipal budgets, it should be viewed as a means of providing greater services for residents and more public investments, which in turn improve well-being in the areas where you operate. He stated, “This tax will ensure financial independence for municipalities.”
With a new statute and full implementation of the Fiscal Cadastre, a fair property and land taxation system will be in place by 2030, in line with current European standards.