Local fees are not taxes but payments for services, and in practice the three most common are cleaning, landscaping, and public lighting. Together with the sign tax, the infrastructure impact tax, and the lodging tax, they make up the portion of local obligations that businesses encounter most often throughout the year.
This page explains what local fees are and how they are set, when the sign tax for advertisements comes into play, why the infrastructure impact fee should be budgeted at the start of a project rather than at the end, how the lodging tax for accommodation facilities works, and how the obligation to the municipality is verified. The specific rates are not published here, as they are approved by a municipal council decision.
Read also: What taxes are paid to the municipality?.
These three fees are paid for services provided by the municipality, so they are not tied to property value or business income. They are set by a municipal council decision, either as a flat rate or according to criteria approved by the municipality, and are billed together with other local obligations.
The differentiation criteria vary from one municipality to another. In some cases the fee depends on the type of activity, in others on the unit's area, and in others on the number of employees. For this reason, two identical businesses in different cities may have very different obligations.
The local obligations we see most often
| Obligation | Base of calculation | When I am born |
|---|---|---|
| Cleaning fee | Many fixed or approved criteria | Annual, according to the notice |
| Greening fee | Many fixed or approved criteria | Annual, according to the notice |
| Public lighting fee | Many fixed or approved criteria | Annual, according to the notice |
| License plate fee | Table surface and type | With the placement of the table |
| Infrastructure Impact Fee | Value of the investment | Before obtaining a building permit |
| Overnight fee | Night-persons | With the client's stay |
Tariff levels, differentiation criteria, and payment deadlines are not published on this page because they are approved by a municipal council resolution for the respective year and vary from municipality to municipality.
The municipality imposes a tax on outdoor signs and advertisements. The tax is based on the sign's surface area and type, so a small identifying sign above an entrance and a large advertising panel are not treated the same.
The obligation arises when the sign is posted and continues until the sign is removed and its removal is declared. This is an expense that businesses more easily overlook, because the sign remains even after operations change or relocate, and the obligation keeps appearing.
✔ Type of sign according to the municipal ordinance classification: informational or advertising.
✔ The exact area in square meters, according to the sign's design.
✔ Preliminary permit or approval, when the municipality requires it for the outdoor environment
✔ Payment deadline and billing method, along with any additional fees
✔ Procedure for declaring removal to stop the obligation
This tax is levied on new construction, additions, and interventions that require a building permit. The basis for calculation is the value of the investment, and the fee is applied as a percentage of that value. Payment is made before the permit is issued, so it is a cost of the project's first phase and is not deferred until the end.
For a business building a warehouse, production unit, or expanding its facilities, this is often the single largest local tax of the entire year. Budgeting for it at the start of the project is the difference between a plan that works and a surprise bill at the worst possible time.
Illustrative example, with hypothetical figures and not the official fees. The declared investment value is 20,000,000 lekë and the applied fee is 3%. The infrastructure impact fee amounts to 600,000 lekë, payable before the permit. If the applied rate is 1%, the same investment value yields 200,000 lek. The 400,000-lek difference between the two hypothetical rates is why the rate is verified in the municipality's decision before the project is budgeted.
The lodging tax is paid by the guest staying at an accommodation facility, while the facility collects it and then remits it to the municipality. The base is the number of nights stayed per person, and the rate is set by a municipal council decision, often differentiated by the category of the facility.
For hotels and guesthouses, this tax is not a business expense but is collected on behalf of the municipality. Proper treatment on the invoice and in accounting is important, because the amount is not revenue of the establishment and does not enter into the business turnover.
Illustrative example, with hypothetical figures and not the official rates. A guesthouse records 1,200 night-person stays per season and the tax rate is 100 lekë per person per night. The amount collected and remitted is 120,000 lek. This amount is not the inn's revenue, so it does not count toward its turnover and does not affect the VAT threshold. The actual rate is specified in the municipal council's decision.
Read also: VAT rate of 61% for accommodation and the categorization of establishments.
The answer to how much you pay isn't found in a single law, but in your municipality's annual fiscal package. For this reason, the review follows a specific sequence, beginning with the municipal council's decision and ending with the official notice you receive.
✔ Request the municipal council's decision for the relevant year, as published by the municipality.
✔ Find your activity's voice in the decision tables, because differentiation is done by category.
✔ Check the current tax liability at the local tax office, including NIPT and address.
✔ Compare the notice you received with the text of the decision, and ask for clarification when they don't match.
✔ Archive the notice and the payment order, because they prove payment when proof is required.
Local obligations paid for the activity are treated under the general rule for deductible expenses, meaning they must be related to the activity and documented. Without a payment voucher and a filed notice, the deduction remains unsupported.
Read also: How is the building tax calculated?.
Illustrative example of the total local burden on a business unit, with hypothetical figures. Building tax 24,000 lek, cleaning fee 20,000 lek, greening fee 5,000 lek, lighting fee 3,000 lek, and sign tax 15,000 lek. The annual total comes to 67,000 lek. The only purpose of this example is to show that the obligation comes as a package, not as a single item, so budgeting is done for the entire package.
The infrastructure impact fee is not budgeted at the start of the project and appears as an unexpected cost before permitting.
The accommodation provider treats the lodging tax as its own revenue, even though it is collected on behalf of the municipality.
The sign is removed or the address is changed, but the removal isn't reported to the municipality, so the obligation continues.
The business requires a national figure for the fees, while the level is approved by a municipal council decision.
Municipal notices are not archived, and the unpaid obligation is only revealed when a certificate is requested.
Mandatory payments of local fees are not related to accounting, so the expense deduction remains unsupported.
Last year's decision is applied to the new year, while the local fiscal package is reapproved every year.
Fees for services provided by the municipality, mainly cleaning, landscaping, and public lighting. They are not taxes and are not tied to property value or income.
There is no single national figure. The rate is approved by a municipal council decision and varies according to the criteria the municipality chooses, so please check with your municipality.
Before obtaining a building permit, it is calculated based on the value of the investment, with the fee approved by the municipality.
Yes, outdoor signs and advertisements are subject to the sign tax, based on the sign's surface area and type.
No. The removal is declared to the municipality, because without a declaration the obligation continues to appear in the local tax registers.
The rate is set by a municipal council decision, often differentiated by the category of the structure. The basis is the number of nights stayed per person.
No. It is collected on behalf of the municipality, so it is not part of the structure's revenue and is handled separately on the invoice and in accounting.
When they are paid for activities, they are treated under the general rule for deductible expenses, meaning they must be related to the activity and documented.
It is published by the respective municipality for the corresponding fiscal year. It is the only reliable source for the levels and deadlines of local obligations.
Law No. 9632, dated 30.10.2006 “For the local tax system,” as amended, for the sign tax, the infrastructure impact tax, the lodging tax, temporary taxes and local fees, where Chapter III has been repealed by Article 71 of Law No. 29/2023.
Joint instruction No. 17, dated June 20, 2022, for the administration of local taxes
Ministry of Finance Directive No. 1/2007 on ambulant activities
The municipal council's decision for the relevant year, which establishes the levels, criteria, and deadlines, and which is reviewed for each municipality separately.
Law No. 29/2023 “For the income tax,” as amended, section 48 on the general rule for deductible expenses.