- The property revaluation is carried out through December 31, 2026, with a 5.1% tax on the difference between the new value and the registered value, pursuant to Law No. 85/2025.
- The new value comes from a licensed expert, but it cannot be lower than the tax rates, nor from the Cadastre itself at the minimum tax rates.
- When the property is registered without a value, the purchase value is determined in accordance with Instruction No. 34, dated December 29, 2023.
- Claims paid through December 31, 2026, that have not been finalized by ASHK will be closed by March 31, 2027.
- Legal entities pay 51 TP3T and reflect the difference in their 2026 financial statements.
What the New Law Entails and Why It Matters
The new Law No. 85/2025 "On Real Estate Revaluation"”It gives all owners, individuals and legal entities, the opportunity to revalue their real estate (plots, land, or buildings) at their current market value during the period from January 1, 2026 to December 31, 2026. This law is important because it temporarily reduces the tax paid on the increase in property value: Instead of the standard 15% rate on capital gains (which is usually paid when a property is sold), during the revaluation a reduced rate of just 5% is applied to the difference between the registered value and the market value. In other words, owners can “buy” the new cost basis of the property at a discount, paying 5% now on the increase in value, instead of paying 15% on the gain when they sell the property in the future.
Read also: Instruction No. 5/2026, tax base formula, forms and fees
This preferential 5% tax makes revaluation financially attractive for many owners, as it saves approximately 2/3 of the tax liability compared to not revaluating.
For example, if a property has a realized gain of €20,000, without revaluation the capital gains tax would be about €3,000, whereas with advance revaluation only €1,000 would be paid. The €2,000 saving can be significant, especially for properties that have seen substantial value growth over the years. Furthermore, the law for the first time recognizes depreciation of the property over the years—about 1% for each year of age—which means that for long-established properties the taxable base is slightly reduced due to depreciation. This is expected to ease the tax on older buildings (e.g., a 30-year-old building will be taxed only on 70% of the value difference, reducing the liability).
Law 85/2025 is part of the fiscal package and policies aimed at formalizing the real estate market. It was decreed and announced in January 2026 by the President, with the goal of entering into force as early as possible within January. The intervention comes after a period of rapid growth in real estate market prices and a revision of fiscal reference prices by the government. Without this law, property sellers would face much higher capital gains taxes (due to the large gap between historical and current values), which could stifle transactions or push them toward informality. Therefore, revaluation serves both as fiscal relief for citizens and businesses, and as a tool to increase short-term budget revenue and update registries with real values.
This new law allows real estate owners to benefit from a partial tax "amnesty" by paying 5% on the property's value increase until the end of 2026, instead of paying 15% on the profit when the property is sold in the future. This is particularly important under current market conditions where property values have risen significantly, and the standard 15% tax would be a major burden. The 2026 revaluation aims to encourage the formalization of real values, bring immediate revenue to the budget, and provide owners with financial flexibility and legal certainty in their property management plans.
Who Benefits from Revaluation and How the Process Works
Beneficiaries
All real estate owners in Albania can benefit from this law. This includes individuals (natural persons) who own apartments, houses, plots of land or agricultural land, as well as legal entities (businesses) that hold real estate in their name. The law applies regardless of whether the property is used for residential purposes, rental, or business activities. Even Albanian citizens residing abroad (the diaspora) can benefit, provided the property is registered in their name (or in the name of legal heirs in the case of inherited properties). The only exception is properties that have not yet been registered (e.g., those in the legalization process); these currently cannot be re-evaluated without first being registered, although there have been discussions to include them as well. Therefore, if you have a property that does not yet have a mortgage or title deed, you must complete the registration first, then carry out the revaluation.
Read also: Local taxes and property tax
Revaluation Methods
The law provides two main ways to determine the new market value of your property during revaluation:
Revaluation by a Licensed Expert
This means hiring a professional real estate appraiser, licensed by the relevant authorities, who will conduct a market valuation of your property. The expert will inspect the property and issue a written appraisal report specifying the current market value in lek. This professional report must be attached to your application for revaluation at the Cadastre.
It is important to choose a qualified, registered appraiser, as you will also be required to provide a copy of his or her license in the application documents. The market value determined by the expert cannot be lower than the officially approved minimum tax rates for your property's area and type. This means the law sets a floor on appraisals to prevent artificial undervaluation; the appraisal will be accepted only if it is at least equal to the applicable minimum fiscal value (as referenced in the fiscal price map used for property transfer tax).
Revaluation by the State Cadastre Agency (ASHK)
Alternatively, you can choose to have the local Land Registry office (formerly the Mortgage/ZRPP office) itself re-evaluate your property, based on the official minimum fiscal values for the property's type and area. This option allows owners who do not wish to or are unable to hire a private appraiser to obtain the valuation from the state.
In this case, on the application form you will indicate that you choose revaluation by the ASHK using fiscal prices, and it is not necessary to submit an expert appraisal report. The Land Registry offices will calculate the property's value themselves based on the minimum price database (taking into account the cadastral area, property type, area, year of construction, etc.). and will calculate the difference between that value and the amount currently recorded on the property card. In this case as well, the same rule applies: the new value will not be lower than the minimum fiscal value for your property. Practically, the Cadastre will use the official price map (updated in 2023) as the basis for determining the market value of your property if you do not provide a private appraisal.
Application Procedure and Tax Calculation
Regardless of which of the above methods you choose, the following steps are the same: the standard application form for revaluation is completed and submitted (online or in person; see the step-by-step guide below). The Land Registry Office will then calculate the tax base, which is the difference between the new property value (as determined by the appraisal report or by the Registry's assessment) and the property's previously recorded value. The old registered value refers to either the purchase price (if you bought the property and have declared that price) or the most recent reassessed value (if the property has undergone a prior reassessment and you have paid the corresponding tax). The 5% tax is calculated on this net difference.
Example
Suppose you have an apartment with a registered value of 5 million lek and the current market value (according to the expert or the Cadastre) is 8 million lek. The difference (tax base) is 3 million lek; the revaluation tax will be 5% of that, i.e., 150,000 lek. The Cadastre prepares the calculation and issues the invoice or payment notice for the tax. Once you make the payment at the bank or online, the revaluation is officially recorded, your property file is updated with the new market value, and from that moment on that value will be treated as the “cost of acquisition” for tax purposes in the event of a future sale. With the new registration, you have effectively “reset” the value of your property in the eyes of the tax law.
Documentation and Administrative Guidelines
Within 30 days of the law's entry into force, a Joint Directive from the Ministry of Finance and the ASHK Directorate is expected to be issued, detailing the implementation procedures. This directive is expected to clarify the practical steps for application, the method of calculating the taxable base (including the 1% per year amortization formula), the method of payment of the tax and revenues to the budget, as well as the service fee that the Cadastre will apply for conducting the revaluation. According to previous practice, the ASHK fee is expected to be a modest flat amount (a few thousand lek) per application, payable separately from the tax.
Among the main documents required for application are: the title deed (or a copy of the property register), the valuation report (if you have used a private appraiser) together with the appraiser's license, the owner's identification document/of the applicant, as well as payment receipts confirming payment of the service fee (and tax, in the final phase). The guidance is also expected to clarify whether the application can be made entirely online or at physical service counters, but as described below, the e-Albania platform already offers the electronic service for the revaluation application.
In summary, the revaluation process is open to all owners during 2026 and is carried out by determining the new value of the property (by an expert or the Cadastre) and then paying a 5% tax on the value increase. The result is a property record with an updated value and an owner who has paid a reduced tax to save on a larger tax in the future. Below, we will explain the differences between individuals and businesses, cases where this revaluation is worth it or not, as well as the concrete steps to implement it.
Individuals vs. legal entities: fiscal and economic treatment
The law formally treats individuals and commercial entities (businesses) the same regarding the right to revaluate and the tax rate: 5% of the value difference for everyone, without exception. This is a novelty, as in the previous campaign (the 2020 law), individuals paid only 3% while businesses paid 5% tax for revaluation. This time, the revaluation tax burden is unified for both categories, which on one hand simplifies the scheme, but on the other hand increases the cost for individuals compared to previous times. Nevertheless, there are practical and economic differences in how individuals versus legal entities are affected by this process:
Payment Methods and Tax Deductibility
An individual who undergoes a revaluation must pay the 5% tax out of his own pocket, immediately (within the prescribed payment deadlines). This payment is considered final, and the individual has no right to deduct or offset it anywhere. Meanwhile, a business (legal entity), when paying the 5% tax, may treat it as a deductible expense for income tax purposes. In practice, a business will record this payment as an expense on its balance sheet, reducing its taxable profit base for that year.
Thus, the net revaluation cost for the business is somewhat lower: For example, a company that pays 100,000 lek in revaluation tax, if it is profitable, reduces its corporate income tax (15%) by 15,000 lek, so net it costs 85,000 lek. The individual, meanwhile, pays the full 100,000 lek because they have nowhere to deduct it. This will make the revaluation financially more affordable for businesses than for individuals with the same difference in property value.
Impact on Balance Sheets and Depreciation
For businesses, after revaluation the asset account balance changes. The value of real estate on the company's books increases to reflect market value. This can have several positive consequences: (a) The increase in assets strengthens the business's financial statements, improving capital ratios and potentially its ability to secure bank loans (since the property can be used as collateral at a higher value). (b) If the asset is a depreciable building or structure, the company can apply depreciation (amortization) against the higher new value.
This means higher depreciation expenses year after year, which reduce corporate income tax in the coming years. In other words, the company pays 51% tax once, but can then save on taxes by deducting the additional depreciation from its taxable profits over the asset's remaining life. This effect does not exist for individuals, who do not have balance sheets or tax-deductible depreciation for their private homes.
Impact at the Point of Sale
Both individuals and businesses will, after revaluation, have a new cost base equal to the property's new value. If they then decide to sell the property, the capital gain taxed at 15% is calculated from this new base. Thus, both categories will save 10 percentage points of tax on the revalued difference. However, for businesses there may be an additional impact: the sale of a revalued asset is also reflected in the equity accounts (the revaluation reserve). The business, having paid the preferential tax, has discharged its liability on that gain and can more freely distribute the gain from the sale (e.g., as a dividend) without paying additional tax on the revalued portion. The individual simply benefits from not paying tax at the time of sale on the portion of the gain covered by the revaluation, just like the business, but he has no other financial implications beyond the tax savings.
Financial Capacity and Decision-Making
For many individuals (especially families with modest incomes), even paying a 5% tax can be significant. If the property's value has increased significantly, the 5% on the difference can amount to substantial sums (several thousand or tens of thousands of euros), which the individual must pay by 2026. Not everyone has sufficient liquidity to make this payment immediately, especially when they don't plan to sell the property soon (i.e., they aren't expecting an income from which to cover this payment).
Businesses, on the other hand, typically have greater financial capacity or access to funds, and can plan for this cost as part of their annual financial management. This is why the Association of Brokers (NAREA) proposed that the tax on individuals“ homes be cut to 31 percent, arguing that otherwise many individuals would be deterred or unable to afford the revaluation, leaving their properties ”locked in" (with low recorded values). Although this proposal was not included in the final law, it highlights the difference in the situation between individuals and businesses.
It is true that an ordinary family might hesitate to pay, say, €5,000 in revaluation tax today on its own home if it doesn't have a concrete plan to sell, whereas a trading company might view paying 51 TP3T as an investment (to lower future taxes and improve its balance sheet).
Approach to Revaluation
For individuals, property ownership often has an emotional and long-term dimension (the family home, inherited property, etc.). The decision to revaluate for them is primarily linked to personal economic calculation: is it worth paying now for a future benefit? For many individuals, revaluation only makes sense if they plan to sell the property within a reasonable timeframe (or transfer it via gift/inheritance to someone who will then sell it). Businesses, however, view revaluation more from an asset management perspective: it is an opportunity to refresh asset values on the balance sheet according to the market and to optimize the fiscal burden in the medium term. Businesses may decide to revaluate even without the intention of selling the property immediately, because they are interested in a more realistic financial statement or avoiding a heavy one-time tax in the future when the property might be sold.
In summary, the main difference is that the real cost of revaluation for businesses ends up being lower (thanks to fiscal deductions and balance sheet effects) and their benefits can be twofold (lower capital gains tax + better balance sheet), while for individuals, it is a direct cost and they simply benefit from the tax savings on profit when they sell. This means the "is it worth it or not" analysis (see the next section) may result differently for an individual and a company, even if they have the same property with the same value growth. In the sections below, we will address precisely when it is valuable to carry out revaluation and when it might not be, with concrete examples illustrating various situations for individuals and businesses.
When it's worth doing a reevaluation, and when it's not
Not every owner should automatically rush to perform a revaluation. The value of this process depends on the specific circumstances of the property and your future plans. Below we elaborate on typical situations where revaluation is recommended and where it might not be useful, providing reasons and examples for each case:
When is Revaluation Recommended?
When planning to sell the property in the near future
This is the clearest case where revaluation makes sense. If you plan to put the property up for sale in 2026–2027 (or even a few years later), paying the 51% tax now will save you the 15% tax at the time of sale. The 10 percentage point difference can translate into thousands of euros in savings.
Example: Mr. A owns an apartment he bought for €50,000 and plans to sell it soon for around €100,000. Without revaluation, he would have to pay 15% tax on the €50,000 gain (about €7,500 in tax). With revaluation, he now pays 51% on that difference (€2,500), and then, when he sells, the capital gains tax will be zero (because the new cost will be recognized at €100,000). Net savings: €5,000. This saving can be even higher on properties with greater gains.
Therefore, if you have a concrete sales plan or are a business aiming to sell an asset, you're better off paying 51 TP3T now than 151 TP3T later.
When the registered value is significantly lower than the market value
Many Albanian citizens own properties purchased years (or decades) ago at very low prices compared to today's market, or acquired through privatization or inheritance with a nominal recorded value. This would imply a very large paper capital gain when the property is sold. A 15% tax on that large gain would be burdensome. Revaluation allows you to neutralize this accumulated “gain” by paying only 5%.
This is especially valuable for old family properties, plots of land that were once purchased very cheaply and now are worth a lot, as well as assets that have been passed down by inheritance or gift, where the recorded value has often been minimal or calculated using indirect methods. Even if you don't plan an immediate sale, chances are that sooner or later you'll transfer the property (to your children, grandchildren, or by selling it). Having it re-valued now protects you from a much higher tax that would be due in the future.
It is worth mentioning that, by law, inheritance within the immediate family is exempt from the 15% tax at the time of inheritance, but not from the capital gains tax when the heir sells the property later. Thus, if you have inherited a property with a low old value, revaluation will put you in a much better position if you decide to sell that property in the future (since your gain will be calculated from the new value).
When using the property for business purposes or as loan collateral
If you are a business or an entrepreneurial individual who uses the property for business activities (e.g., business premises, investment land, etc.), revaluation may make economic sense even without selling the property. By increasing the asset value on the balance sheet, you boost the company's capital and can increase its borrowing capacity. Banks and financial institutions favor assets being recorded at their fair market values, as this provides greater transparency and security for collateral.
Also, for businesses that have depreciable buildings, revaluation may imply a higher depreciation expense (i.e., lower income tax) in future years, as explained above. These benefits can indirectly justify the cost of revaluation even in the absence of an immediate sale. In this light, a business would do well to revalue if the asset represents a significant portion of its holdings and has not been revalued for a long time.
Even for individuals, if you intend to take out a bank loan and use property as collateral, an officially updated valuation can help you negotiate a higher loan amount. Banks usually send their own appraisers for collateral, but a property card showing the actual value ensures there are no procedural hurdles (for example, if the official valuation is too low, the bank may request additional clarification). Therefore, improving your financial statement is a valid reason to request a revaluation.
When seeking legal certainty and future flexibility for your property
Having a property with an up-to-date value eliminates uncertainty about hidden tax liabilities. You know which value you've “locked in” and can plan better. This can be important in family or business situations, for example, when dividing ownership among partners: a revaluation establishes a base value that can serve as a fair reference for division or for calculating capital.
Also, If you own property jointly with other family members, conducting a revaluation can avoid future disputes over value (especially when one co-owner wants to sell their share; the 51% tax paid can be included as a cost and reflected in the price). From a legal standpoint, revaluation brings you into full compliance with current tax legislation and reduces the chances of issues in the event of future inspections or verifications of the property's history. In the past, there have been cases where the tax administration has questioned the values declared in sales (when they were significantly below market). With the revaluation, your property now officially has a market-reflective value, so future transactions are expected to be smoother from a bureaucratic standpoint.
When Revaluation May Not Be Necessary?
When you don't intend to sell or transfer the property for a long time
If the property in question is your primary residence and you plan to hold it for many years (perhaps to pass on to your children), paying taxes now may not be necessary. The main reason for revaluation is to save on capital gains tax; but if there's unlikely to be a sale in the next 10–20 years, you can choose to pay nothing now and simply face the tax when (and if) the sale occurs. The value of cash in hand today is higher than in the future; economists would say that in current terms, 5% today may be equivalent to perhaps 8–10TP3T many years from now, due to inflation and alternative investment opportunities. Therefore, if you don't have a short-term use for the property on the market, you may decide it's not worth paying taxes now. Example: Ms. B owns an apartment she lives in, purchased 15 years ago. Its value has increased, but she doesn't plan to sell it for at least the next 15 years. A revaluation would cost her, for example, €2,000 now. If she doesn't carry out the revaluation, in 15 years when she sells she may have to pay more than €2,000 in taxes, but that payment is deferred. She may prefer not to pay this money today and instead invest it or use it for other family needs. Of course, this reasoning only holds if she is relatively certain that she will not sell or otherwise dispose of the property anytime soon. It should be emphasized that this decision carries little fiscal risk for the future: the 15% tax will still be owed to the state when the sale takes place, and if the property's value rises even further in 15 years, the liability will be even higher. But that is a matter for the future; failing to carry out the revaluation is essentially deferring the tax payment for those who do not have an immediate need to lower it.
When the value discrepancy is minimal
There are cases when the recorded value of your property is not far from the current market value. This can happen if: (a) you bought the property relatively recently at a price close to market value, (b) you had the property revalued in the past (e.g., in 2020) and the price hasn't changed much since then, or (c) it's a new property (e.g., a recently legalized apartment with the new reference prices). In these cases, the taxable “gain” is small, and the gain from revaluation is also small. Example: A plot of land bought for 9 million lek two years ago is now worth 10 million lek. The difference is only 1 million; revaluation would cost 50,000 lek, while the sales tax without revaluation would be 150,000 lek. The potential savings are 100,000 lek. Is it worth the hassle? If the owner isn't selling the land now, he can choose not to go through the revaluation procedures for a relatively modest saving. In fact, one must consider that the cost of the appraiser and application fees will eat into part of this savings. So, in cases of small gains, especially for individuals, revaluation may not be practically worthwhile. It may be simpler to simply pay the 15% tax on that small gain when the property is sold. Of course, this calculation changes if expectations are that the property's value will rise significantly, but in our case we assume a minimal difference.
When you lack the immediate financial capacity to pay the tax
Even though it may result in economic leverage, revaluation requires immediate payment within 2026. If you are a family with a limited budget or a business with liquidity issues, it might be difficult to find the funds to pay the 5% tax (and other costs) within the deadline. The government does not offer the option of installment payments; it must be paid in full once the invoice is issued. So if you realistically do not have the necessary cash, then you have no choice but to not perform the revaluation. Of course, this means you also won't sell the property until you can pay the full tax on the profit. Some owners find themselves in a situation where their property has great value but is illiquid (e.g., inherited land in a high-value area, but they themselves do not have high income). In such cases, revaluation may prove practically unachievable despite theoretical leverage. Warning: If you are in this situation but still plan to sell the property within 2026, you can coordinate with the potential buyer: sell after revaluation, agreeing that the buyer lends you or pays the revaluation tax as part of the price. This requires trust and formalization with a contract, but it has happened in practice (the buyer prefers a property with revalued value to avoid tax issues). However, if you have no financing possibility at all, then revaluation simply cannot be done.
When awaiting potentially more favorable policies in the future
Some owners might think: “If the government has carried out revaluations several times (1%, 2%, 3%, now 5%), maybe in a few years another revaluation will come, perhaps even at a rate lower than 5%.” Is it worth waiting? That's speculative and depends on your confidence in future fiscal policies. It's true that there have been several rounds of reassessments over the past 15 years (see the history below), and on some occasions the rates have been lower than 5%. In 2020 individuals paid 3%, and NAREA asked for 3% again this time. However, there is no guarantee that a new scheme will come soon. In fact, since this is already the fourth broad reassessment, the government may not offer this relief again for several years, or it may offer it on even less favorable terms (e.g., only 5% or more). Likewise, economic factors such as pressure to increase budget revenues could mean this may be the last chance for some time. Waiting also comes at a cost: during that time, you cannot sell the property (without paying 15% tax on the full amount). If, however, you can't sell the property now and you're in no hurry, you can choose not to carry out the revaluation now and hope for another opportunity. But that's gambling; our technical recommendation is: If you actually plan to sell the property within the next five years, take advantage of the current revaluation. If you're completely sure you won't sell it even after five years, you can wait, understanding that in five years the capital gains tax may still be in place and there may be no revaluation at all.
When the property qualifies for other legal exemptions
Currently, Albania taxes capital gains from real estate sales for all owners (exception is made only when an individual sells their sole residence after a certain period of habitation, although our legislation is not yet as clear as some EU countries on this exemption). There are rumors of possible reforms such as exempting the primary residence from capital gains tax, a common practice in many developed countries. If you believe the Albanian legislator might take such a step in the future (e.g., removing the 15% tax for the sale of a house where you have lived), then revaluating that property today might not be necessary (because perhaps its profit wouldn't be taxed at all tomorrow). So far there is nothing concrete, but for accuracy, we mention this point as part of the reasoning. Also, if your property is currently in the legalization process and you hope it might be included in the revaluation scheme by some government decision before it is registered, you can wait a bit. But the likelihood is that unlegalized properties must finish legalization to enter revaluation, so this is not a strong reason not to act.
In summary, the question "To revaluate or not?" depends on: a) The time horizon (how soon you will sell or transfer the property), b) The size of the undisclosed profit (the value difference and saved tax), c) Your current financial situation, and d) Trust in future policies. Below we have included some practical examples with figures, which can help you concretize your decision-making in different situations.
Links to Previous Revaluations and Why It’s Returning
Law 85/2025 did not emerge in a vacuum; on the contrary, it is a continuation of previous fiscal policies for property revaluation. Albania has organized several revaluation campaigns over the past decade, almost on a periodic basis. Nearly every 3–5 years, the authorities have offered a window during which property owners can update their property values with reduced tax. Specifically:
(1) The first law was implemented in 2011–2013, with a preferential tax rate of just 11%. It was a great success: over 95,000 properties were reassessed, and the state collected around €39.8 million from this process.
(2) The second campaign took place in 2016–2017, with the tax increased to 21 TP3T. Public interest fell somewhat compared to the first time (64,700 properties were reassessed), but over €56.9 million in revenue was still collected for the budget. The rate increase from 11% to 21% resulted in fewer applications but higher revenue than in the first round, as market prices had shifted and the tax nevertheless remained low.
(3) The third campaign was recently carried out from 2020 to 2022, with a 3% tax. It was preceded by a law in January 2020, but due to the pandemic the deadline was postponed and extended until August 2022. In this round there were almost as many applications as in the first: around 94,000 properties were re-evaluated. The revenue collected was significantly higher, a full €138.6 million, as not only was the 3% rate higher than before, but market prices had also surged, especially in recent years, increasing the taxable base. This latest campaign was well received by the public; around 110,000 families are said to have benefited, and the government extended the deadline twice to include as many applicants as possible (initially until the end of 2021, and then for a few months in 2022).
As can be seen, each round had somewhat different parameters. In general, the maximum tax reduction (11 percentage points in 2011) spurred the highest number of applications. The gradual increase in the rate to 2% and then 3% led to a slight drop in participation but boosted budget revenues (especially in the third round, due to higher prices). Now, the 5% rate in 2026 is the highest ever applied for a revaluation, which could negatively impact participation (some owners may be deterred by the higher cost), but the government seems to have assessed that the rise in property prices justifies even this higher rate. In fact, the Association NAREA and market experts warned that 5% could discourage some citizens compared to the success of the 3% rate, yet expectations remain that interest will be high as the need for revaluation still exists on a massive scale.
Why Is Revaluation Being Offered Again?From the official rationale (the explanatory report of the draft law) and expert analyses, several key motives emerge:
Significant increase in property prices in recent years
Especially in Tirana and other major cities, apartment and land prices have risen substantially (20–40% or more). This means that many owners, if they sell without revaluation, would be required to pay very high capital gains tax. The law aims to ease this burden by offering a reduced tax rate to align registered values more closely with market reality.A key factor here is the update of minimum fiscal reference prices by the government: at the end of 2023, new reference price maps for real estate were approved, bringing fiscal values closer to actual market prices. This move, while positive for tax administration (as it reduces under-declaration in sale contracts), creates the need to give owners an opportunity to “update” their property values without heavy penalties. Revaluation therefore acts as a form of compensation: the state increases reference prices but allows owners to pay a small tax now instead of facing a much higher burden later.
High interest from citizens and businesses
Experience has shown that Albanians welcome these opportunities. According to the data, from 2011 to 2022 a total of 254,665 applications for revaluation were filed and over 23.5 billion lekë in reduced tax was paid in total. These figures show that there is a real need in the market to correct property values. Many properties have changed hands, been improved (renovations, additions), or seen market development, and owners want to formalize these changes at an affordable cost. The government knows that every revaluation campaign is accompanied by a surge in applications at the Cadastre offices and an increase in subsequent transactions. This not only generates one-time revenue but also revitalizes the real estate market; people become more willing to sell and buy when they know the tax isn't stratospheric. Thus, the 2026 revaluation aims to give the real estate market a boost at a time when inflation and economic uncertainties may have slowed it down.
Large volume of properties still not revalued
Even after three campaigns, it is estimated that hundreds of thousands of properties still remain with historically low values. NAREA estimated that as of 2011 about 250,000 properties needed revaluation, while the census suggests there may be 500,000 homes that have not been revalued. From previous rounds, a total of ~250,000 properties have been covered, which means that a large number of properties still remain. Many owners either had limited awareness or were unable, for financial or timing reasons, to participate in the earlier schemes. These owners now have a new chance. In particular, the Albanian diaspora that couldn't apply (or owners abroad who couldn't return during the pandemic) can now plan for 2026. Pressure from interest groups has been strong; the Association of Brokers (real estate agents) lobbied heavily for the approval of this law, arguing that the market was eagerly awaiting it and that any delay was creating uncertainty. The President was also publicly pressured to immediately enact the law, precisely because it was considered important for the economy.
Need for additional budget revenue and economic formalization
Previous revaluations have brought billions of lek into the state's coffers without raising formal taxes; in fact, by lowering the rate, they paradoxically increase revenues (the Laffer effect). This happens because many people who otherwise wouldn't pay anything (if they don't sell) choose to pay when the rate is low. For 2026, the government has budgeted a contribution from the revaluation (a figure not publicly known, but which can be estimated based on past experiences, perhaps around 10–15 billion lek). These additional funds help finance public projects or cover the deficit. Also, each revaluation increases the long-term tax base: after 2026, when the revalued properties are sold, they will generate more revenue (15% on further increases). If there were no revaluation, many transactions would either not take place or would be done in the black market. Therefore, from the tax administration's perspective, revaluation is a win-win policy: Now it collects 51% from many entities, and later it collects another 15% on the new gains, while reducing informality (because people no longer have an incentive to hide the real value once it's already recorded).
Alignment with international practices
Although developed countries do not usually do so in this form, Albania has used revaluation as a transitional tool toward a system in which cadastral property values reflect the market. A property registered at its real value ensures that capital gains tax functions normally (just like business profit tax, where recognizing the actual cost is a prerequisite). In the 1990s and 2000s, many properties were registered at nominal values; now, after several rounds of revaluation, most have improved their base. It is worth noting that some countries also apply a periodic wealth tax on market value, and although Albania has a small annual property tax, a register with real values would also help with such policies (if they were introduced in the future). Thus, this law is also seen as a step toward modernizing property administration and related taxes.
Considering these factors, the 2026 revaluation is not a surprise but a recurring step with some changes: a slightly higher rate, a one-year timeframe, and innovations such as property depreciation. The reasons for doing it again are clear: market demand, price changes, budgetary needs, and all previous experience suggests it is likely to be a successful process. In the following section, we will briefly review what we have learned from these past revaluations to better understand the practical issues that need to be considered.
Past Revaluation Performance and Lessons Learned
The historical experience of property revaluations in Albania offers several key lessons for citizens, businesses, and policymakers.
High interest, fluctuating based on tax rates
As we saw, the first time with 1% saw high participation. The second time with 2% saw less (many had already re-evaluated, plus the slightly higher cost kept some away). The third time with 3% again saw an increase in the number of revaluations, perhaps because many new owners joined and the rise in prices made the 3% offer very attractive again. Lesson: The lower the tax, the more owners are encouraged to do so. 5% is still relatively low compared to 15%, but surely some owners (especially individuals) will be more hesitant in 2026 than they were in 2020 with 3%. This means that not everyone will take advantage of the opportunity, especially those with little savings or who don't feel an immediate need. For you as a reader, if you have understood the leverage for your case, try not to be influenced by this general hesitation; after all, the decision is personal, but history shows that waiting for a lower rate can take a long time (e.g. from 2013 it took 3 years for 2%, then 4 years for 3%, now 4-5 years for 5%, there is no certainty that 3% will be available again anytime soon).
Cadastre congestion and processing delays
In every previous campaign, especially toward the end of the deadline, the Cadastre offices have faced an application influx much higher than normal. The ASHK's capacities are limited; it is said they can process around 30,000 applications per year with current resources. This has meant that in 2020–2022, for example, deadline extensions were necessary. During that period, the initial one-year deadline was extended to the end of 2021 (making it two years), and then again by a few months in 2022 to complete applications. The lesson: many citizens wait until the last minute to apply, creating a rush and opportunities for extensions. For 2026, the law currently limits it to December 31, 2026, i.e., 12 months. If there are many unprocessed applications from the Cadastre, the government may extend the deadline (or at least allow processing after December 31 for those who applied within the year). But there is no guarantee. Therefore, it's in your interest not to leave your application until the last few months. Apply as early as possible (ideally by mid-2026) to avoid long lines, delays, or the risk that your request won't be accepted due to the high volume. The lesson here is: deadlines can shift, but don't count on extensions—it's better to act early.
Procedures streamlined over time (e.g., online applications)
In 2011 and 2016, the process was mostly manual: you had to physically submit the documents to the Registration Office (Land Registry) and wait. In the 2020 campaign, a major technological improvement was observed, enabling online application for revaluation through the e-Albania portal. This not only simplified the procedure for citizens (they could submit documents electronically), but also helped the Cadastre manage the influx (they could process requests digitally). It is expected that by 2026 the online application will be functional; the e-Albania portal already has the service ready for revaluation, which is expected to be updated in line with the new law. The lesson: Using electronic channels wherever possible makes life easier. Instead of going from office to office, use the online platform. Of course, you need to have the scanned documents (title deed, valuation report, etc.) and possibly an electronic signature (or you can apply with your e-Albania credentials and then send the hand-signed documents to the office). For businesses, it will likely be handled through the e-Albania accounts they use for other services. Learning from the past, the government aims to make this process as “seamless” as possible, with clear instructions, standard lists of documents, and unified procedures. Therefore, the expectation is for a more structured process than perhaps 10 years ago.
Most applicants genuinely benefited from the revaluation, although some may have seen little impact (e.g., for unsold properties)
Looking at the statistics, hundreds of thousands of properties were revalued. This means that just as many owners have paid a small tax and recorded new values. For many of them, it was a smart move: they sold the properties at a lower tax gain or held onto them without fear of a large hidden tax. But there are also cases where owners who revalued their properties couldn't sell them as they expected, or the market stalled, and in hindsight they may feel like they paid the tax for nothing. For example, someone who revalued an investment apartment in 2016 at 21% tax rate, expecting to sell it quickly, but then couldn't sell it until now, effectively paid an early tax when they could have waited until 2020 to do it at 31% or now at 51%. The same thing could happen: someone pays 5% now, but still can't sell for 10 years, and maybe after 10 years another more favorable law comes out or the tax on residences is abolished altogether. The lesson: revaluation is a deal with the state at the present time; it guarantees nothing for the future except what is known now. It's up to you to assess the risks and probabilities. In general, most of those who reassessed in 2011, 2016, or 2020 came out ahead because they either sold their properties with tax savings, or they still own them and will save when they sell. Only a small minority may have regretted it (usually those who paid when they didn't really need to). So the main lesson is: only revalue if you have a pretty good reason (as we discussed in the previous section). Don't do it just because “everyone's doing it”; do it because you personally benefit from a concrete plan. Then you'll most likely be happy with the decision.
Revaluation does not resolve underlying title or registration issues
Another lesson from the past is that some citizens confused the concepts and thought that revaluation would “fix” other issues. For example, anyone with mortgage issues (documentation problems or ownership disputes) thought they could apply for revaluation without resolving them, which is not possible. Or, some owners of still-unlegalized properties thought that by revaluation they could enter the system, which the law does not allow without legalization. Therefore, beware: revaluation cannot legalize a property that has no documents; it does not adjust property boundaries; it does not resolve family or court disputes. It is simply a change in monetary value on the register, nothing more. In the past, there were cases where requests were denied because applicants lacked proper property documentation or were not the legal owners themselves. These denials can be avoided by ensuring in advance that your property is registered, free of legal encumbrances, and with accurate information.
Taxes were successfully collected and there were no dditional penalties for those who did not revalue
Sometimes citizens ask, “What if I don't do the revaluation, will I get a fine or any problems?” The answer, based on past practice, is no—the revaluation is entirely voluntary. In past campaigns, those who didn't carry out the revaluation simply remained with the old values on paper. There was no penalty. Of course, the apparent “punishment” is that when they sell, they'll pay a full 151 TP3T. But the state doesn't impose any additional obligations. The revenue it wanted from the revaluation was collected from those who chose to carry it out. This is a lesson to reassure anyone thinking, “Will the taxman come after me for not doing it?” No, there is no legal obligation to do so. The law says “they have the right to revalue,” not “they are required to.”.
Conclusion Overall, past experience has been positive: revaluation has proven to be a practical and useful tool when used thoughtfully. The Albanian public is now familiar with the concept and knows what to expect, making the 2026 process more predictable. The main anticipated challenges are managing application volume (do not delay your application) and convincing individuals that the 5% rate is worthwhile in cases where it genuinely provides benefit (i.e., fiscal awareness and education). Information campaigns are expected to increase. Institutions and companies may publish guides (such as this one), online tax calculators (some have already been published), and explanatory materials. All of this experience should help you make an informed decision and complete the procedural steps as smoothly as possible.
Practical Examples: Tax Calculation and Benefits
In this section, we present several concrete numerical scenarios to illustrate how revaluation tax is calculated and what savings or financial effects may result. These examples will help you relate the concepts to your specific situation.
Example 1, Individual planning to sell the property (savings from revaluation)
Mr. X purchased an apartment in 2010 for €50,000 (this is the value recorded in the property register). In 2026, he plans to sell it for approximately €100,000. We compare two scenarios:
Example 2, Individual who does not plan a sale (the effect of the prepayment tax)
Mrs. Y inherited a private house from her parents, which in the documents is listed at 2,000,000 lek (the old construction value). The current market value of the house (based on area prices) is about 10,000,000 lek. The difference is therefore 8,000,000 lek. Mrs. Y does not want to sell the house; she lives there and plans to keep it as a long-term family asset. If she were to sell it, the 15% tax on that gain would be 1.2 million lek, a large sum. But since she doesn't intend to sell it, what should she do?
Example 3, Business with property on the balance sheet (effect on the company's profit)
Company “ABC Ltd.” owns land and an industrial building that it purchased and registered in 2015 for 50 million ALL. After several years of depreciation, the book value of this asset may now be 40 million ALL. The current market value in 2026 is, for example, 90 million ALL. The company is considering selling the property within 1–2 years due to relocation. The situation would be as follows:
Example 4, Case where the revaluation changes nothing (zero difference)
For the sake of illustration, imagine a simple case: Mr. D bought an apartment at the end of 2025 for €80,000 and in January 2026 the market value is still around €80,000 (no significant change). Revaluation wouldn't make any difference because the market value equals the purchase price. The cadastre wouldn't accept a value lower than the reference, but let's assume the reference is also at €80k. In this case it makes absolutely no sense, and no one would do it. This example just reminds us: revaluation makes sense when there's a value difference; if there's no accumulated gain, there's nothing to revalue.
The figures above are simplified and assume ideal scenarios to illustrate the concepts. Actual savings may vary slightly (for example, depreciation was assumed to be linear in the example). Additionally, the business examples assume the company is profitable and subject to corporate income tax, so that deductibility of the revaluation tax has an effect. If a company operates at a loss, the deductibility effect would be deferred.
From these practical examples, we can draw several conclusions:
(1) Individuals who sell quickly save significantly on revaluation (Example 1).
(2) Individuals who hold the asset for the long term should weigh the delayed benefit against the immediate cost (Example 2).
(3) Businesses with significantly increased assets benefit greatly, especially thanks to the tax deduction (Example 3).
(4) The revaluation has no effect when there is no increase in value (Example 4).
You may compare your own situation with these scenarios or use them as a calculation model by substituting your own figures as needed.
Step-by-Step Guide
In this final section, we present a practical, step-by-step guide to completing the revaluation of your property, together with advice, deadlines, potential costs, and mistakes to avoid. The aim is to equip you with a concrete action plan.
Step 1: Ensure property documentation is in order
Before considering revaluation, verify that your ownership certificate (or registration document) is correctly issued in your name and that the property has no legal issues (e.g., ownership disputes, unresolved mortgage liens, or incomplete legalization). Revaluation may only be carried out for registered properties and by lawful owners. If the property is still registered in the name of a deceased parent, you must first complete the inheritance procedure to transfer it into your name. If it is in the process of legalization, finalize the legalization process if possible (or wait for further government decisions if any special scheme is introduced). If there are co-owners, you will need their consent to submit the application (or apply jointly). Prepare a copy of the ownership certificate/property card, as you will need to submit it with the application.
Step 2: Choose the revaluation method: licensed appraiser or the Cadastre.
As explained earlier, you have two options for determining market value:
Option A: Appraisal by an independent expert
If you choose this, then find and hire a licensed real estate appraisal expert. You can ask real estate agencies or banks (many of them have lists of licensed appraisers) or professional networks. Make sure they are officially licensed—ask for a copy of their license. Negotiate the service fee (this is an additional cost for you; fees usually vary depending on the type of property and complexity, but for an average city apartment it can be a few hundred euros or less). The appraiser will conduct the inspection and deliver the Appraisal Report within a specified timeframe (a few days or a week). Once you receive the report, check that the determined value is realistic and at least equal to the area's minimum tax assessment. If the expert (surprisingly) has valued the property below the minimum tax price, you will need to ask them to revise it, because the Land Registry will not accept it below that threshold. In general, this doesn't happen—appraisers know the limits. Prepare physical and electronic copies of the appraisal report and the appraiser's license; these will be uploaded or submitted with the application.
Option B: Appraisal by ASHK (using fiscal reference prices)
If you do not want to deal with private experts, you can rely on the assessment by the Cadastre Office. In that case, on the application form you will declare that you are requesting an assessment from ASHK. You do not need to submit an appraisal report (no cost for the appraiser). The Cadastre office staff will take your property data (type, area, building/land, year of construction, etc.) and multiply it by the approved minimum fiscal rates. This will produce the new official value. You should be aware that this assessment can often be lower than the actual market value if your property is in an area where the market moves quickly (or if the property has special qualities that the price table doesn't capture). This may allow you to pay less tax now, but remember that if you later sell at a price higher than the reassessed value, you will pay 15% on the additional difference. In any case, for many properties the tax assessments are still somewhat lower than market prices, so this option can be favorable for those who want to minimize their payment now. The choice is yours; there's no bias from the authorities—it's a perfectly legal right. Just select the appropriate option on the application. (If you have doubts, you can do a quick check: see what the minimum tax price per square meter is in your area and multiply it by the property's square meters, then compare that to the actual value you believe it's worth. This will give you an idea of whether you're declaring it lower or higher than the market.)
Step 3: Complete the revaluation application
The standard application form is expected to be published soon through a joint implementation instruction, and the electronic application is expected to open on the e-Albania portal. You may apply in two ways:
Online application
Log into your account at e-albania.al (create one if needed). Search for the service “Revaluation of Immovable Property” (typically categorized under Cadastre services). You will be required to: Enter property identification details (as per the ownership certificate), Upload required documents (ownership certificate scan, ID document, valuation report + expert license if applicable), Declare if you choose Cadastre valuation instead of private appraisal, Upload any additional documents if relevant (e.g., power of attorney, inheritance certificate). Upon submission, the system will generate an application reference number and confirmation. Save this reference. The advantage of applying online is that you can track the status and receive electronic notifications.
In-person application at the service counter
If you prefer, you may apply at the local office of the Agjencia Shtetërore e Kadastrës (ASHK) where your property is located. Bring: The ownership certificate (original or certified copy), Your ID card, Physical copies of the valuation report (if applicable). Request to apply for revaluation under Law No. 85/2025. The officer will provide the appropriate form. After submission, you will receive a confirmation with a protocol number — keep this document.
In both cases, the application must be submitted by December 31, 2026 (or by any officially extended deadline). Specifically, the law states that by December 31, 2026, the application must be filed and the applicable tax paid. The initial draft provided for applications by September 30 and payments by December 31, but the enacted law pushed it back to the end of December, which means be careful: December 31, 2026 is likely to be the final day for payment (not just for application). In other words, don't postpone your application until December, because the Cadastre also needs time to calculate the tax and issue you the invoice for payment. A good tip is: apply by the end of October 2026 at the latest, so you have time for processing and payment without missing the deadline. (If e-Albania allows you to apply until December 31, don't forget that you must pay on the same day, which can be difficult since banks are closed on year-end holidays; online payments may be accepted, but it's best not to risk it.).
Step 4: Wait for the calculation and tax invoice
Once you have submitted the application, the ball is in the court of the Agjencia Shtetërore e Kadastrës (ASHK) and the Drejtoria e Përgjithshme e Tatimeve (DPT), which cooperate in carrying out this process. Based on past experience:
If you have submitted a private appraisal report, the Cadastre officer reviews it (especially to ensure that the value is ≥ the minimum fiscal price). Then he calculates the difference (new value, previously recorded value). If the old value is missing (e.g., a legalized property without a purchase price), the old value taken from the record will be used (or zero, in which case the tax will be calculated on the full value, although usually all legalized properties have some recorded reference value).
If you have not submitted a private valuation report (i.e., you chose valuation by the Cadastre), the officer will calculate the new value using the standard formulas set out in the implementing instruction (fiscal reference price × surface area, ± depreciation coefficient, etc.). They will determine the market value and calculate the difference from the previously registered value.
The 1% per year depreciation (if confirmed by the implementing instruction) will most likely apply only when the valuation is carried out using fiscal reference prices by the Cadastre. Its applicability to expert valuations has previously been unclear. If the Cadastre performs the valuation, it is expected to apply a reduction based on the age of the building (e.g., 1% multiplied by the number of years since construction, possibly subject to a cap). This will slightly reduce the taxable base for older properties. If you have submitted an expert report, the expert has likely already taken the building’s age into account in the valuation, but in any case the value cannot fall below the minimum fiscal threshold (which itself may already reflect depreciation).
After this, the Cadastre will calculate the 5% tax on the difference. The calculation is typically also reviewed by a tax officer (in previous revaluation processes there was coordination between regional tax directorates and property offices).
You will then be notified for payment. In online applications, the notification is sent electronically (for example, you may see in your e-Albania account or receive an email stating: “Your application has been approved, the revaluation tax amounts to X ALL, invoice ID … generated”). If you applied in person, you are usually contacted by phone or invited to appear at the office to collect the Tax Invoice. The invoice contains a payment reference number and the corresponding amount.
How long does this take? It depends on the workload. At the beginning of the year it might be just a few days or weeks; as applications increase, it could take several weeks. The law requires the guidance to provide for expedited procedures, but there are no written deadlines. In 2020, it officially stated up to 10 business days, but in reality some received responses only after 1–2 months due to the influx. This is where the importance of applying early comes into play: the first applications will receive a response quickly, while those at the end of the year, numbering in the thousands, may be delayed. In any case, once you've submitted your application, you're within the deadline even if the Cadastre is delayed; the important thing is to make the tax payment by 2026.
Step 5: Pay the 5% tax and the service fee
Once you receive the invoice, you must pay the revaluation tax. Payment options are usually:
(1) At a second-tier bank or the Post Office, with that invoice (or with the IBAN/reference details). You pay it like any other invoice to the state (it usually goes into the special Taxes account for income from revaluation).
(2) Preferably online: if the Tax Directorate or the Treasury has integrated an online system, possibly through e-Albania, you can pay by card or via internet banking (for example, some banks offer direct payments for taxes and state fees by entering the invoice reference number).
Important: Keep the payment receipt. You must be able to prove that payment has been made. In online applications, you may have the option to upload proof of payment; at the counter, you will submit or provide a copy to the officer.
In addition to the 5% tax, there is also expected to be a service fee for the Cadastre. So far we don't know exactly how much; the guidelines will set it. It could, for example, be a flat fee of around 1,000 or 2,000 lek per application (we assume). In the online application, you might pay this fee at the start of the process (as happens with some e-Albania services where you're asked to pay by card). At the counter, they will usually have given you the service fee payment slip (or attached it to the tax). Make sure to pay the fee as well if it hasn't been included automatically, because without it the Cadastre won't close the file.
Payment deadline: As a rule, it must be paid by December 31, 2026. It's best not to delay—pay as soon as you receive the invoice. If you applied online, you may have a “Pay” option within the platform. If not, within a few days go to your bank to make the payment.
Step 6: Submit proof of payment and finalize registration
After payment, you must notify the Cadastre that payment has been made so they can finalize the revaluation in the system. In online applications, once the system connects with the Treasury, payment may appear automatically as completed; however, to be safe, upload the payment receipt immediately after paying. In physical applications, return to the counter with the original bank receipt as proof of payment. Submit it, and they will verify and copy it. At that point, the Cadastre can update the property record.
The ASHK officer will record in the property register the new value of your property, the date of the revaluation, and the legal reference. Usually this registration is completed within a few days of payment confirmation (it can even be on the same day). You have the right to request (for a small fee) a new title deed upon completion, which will reflect the new value. This is not mandatory, but it is recommended as proof for you. In any case, the digital record at the ASHK is the primary source, and the notary will see the new value there if you decide to sell in the future.
Step 7: Keep your documents and benefit from the revaluation
Once the process is completed, make sure to keep:
(1) A copy of the property title certificate with the new value (or a printout of the online record if you have access).
(2) Proof of revaluation (if any specific document is issued for a property that has undergone revaluation under Law 85/2025; in 2020 a stamped “Revaluation Certificate” was issued, but under the new system it may simply be a note on the property's record).
(3) Original tax and fee payment vouchers.
(4) The expert's appraisal report, if you have one. You may need these for your records and for any future clarification (e.g., after five years when you sell the property; it's best to have the documents ready if the tax authorities ask anything, even though everything is electronically recorded).
Now your property's value has officially increased. You can sell it at market price without any issues (up to that recorded amount you won't owe capital gains tax). Or you can keep it and rest easy knowing there are no hidden taxes. For businesses, reflect the changes in your accounting in accordance with standards (consult your accountant for the technical details, e.g., transferring the revaluation reserve to capital, etc.).
Institutional Contacts and Official Information During the process, if you have questions or encounter issues, you may contact:
The State Cadastre Agency (ASHK) handles matters related to applications, documents, and application status. ASHK has an official website. ashk.gov.al provides announcements, local office contacts, and emails. Many offices also have information counters.
General Directorate of Taxes (GDT) , for questions about tax payment, calculation, or specific tax matters. DPT has set up a green Helpdesk number (e.g. 0800 00 02for assistance regarding the “property revaluation tax.”They can refer you to a specialist.
e-Albania, If you apply online and encounter technical issues, you can contact the portal's support (it offers chat and email support). You can also ask the ADISA Call Center about electronic services.
Notaries and local real estate agents. Although the revaluation is not carried out by the notary, they are often informed about the procedures. A notary can advise you on legal documents, especially in situations where the property has been transferred under non-standard contracts. Real estate agents (especially members of NAREA) have been involved in promoting revaluation and may provide practical guidance.
Ministry of Finance and Economy (MFE) , Once the Joint Directive is issued, MFE will publish a notice with the details (see the “Documents” or “Decisions” section on the MFE website). You can also consult the Official Gazette where the directive is published for details. In case of specific doubts (e.g., unique cases such as the reassessment of property legalized by a contract of commission, as mentioned that a separate decision may apply), the Ministry can guide you.
Common Mistakes to Avoid
Failure to submit complete documentation
One of the main reasons for delays or refusals may be incomplete or inaccurate documentation. Avoid mistakes such as forgetting the ID copy, failing to include the appraiser's license, missing any page of the appraisal report, etc. Carefully read the list of required documents (refer to the list provided above). Also, accurately complete the property details (property number, cadastral area, address) as shown on the certificate; errors there can cause confusion (someone else's property with a similar number might be reassessed by mistake!). So, work carefully on the form.
Delays and missing deadlines
As we emphasized, don't wait until the last day. It would be a mistake to think, “Ah, it'll be postponed like last time, no problem.” Even if it is postponed, you don't know until when or under what conditions. Plan to complete it earlier in the year when you have the opportunity. Also, after you apply, track the status. If you see it's taking longer than it should, contact the Cadastre office to make sure there's no issue with your application. One concern of NAREA has been that delays in enacting the law could also delay the issuance of the guidelines, which could in turn push the start of applications from January to a bit later (perhaps until January 15–20, 2026). But don't worry: the clock won't start ticking until the process officially opens. Just get ready and keep an eye on notifications. From January 1, 2026 onward, as soon as e-Albania opens the applications or the offices confirm acceptance, you can act.
Attempting to manipulate property value
Someone might think, “I'll convince the appraiser to value it lower so I pay a bit less.” That doesn't work, because the law has provided for that price floor. Also, ASHK itself will use official references. It's not in your interest to artificially lower the property's value: you might pay a bit less tax today, but you'll look bad when you sell it at a higher price and will be taxed again. Therefore, don't insist that the appraiser write things that are out of touch with reality; remember that his report is kept on file and they have legal responsibility for the valuation. Also, don't try any shady “shortcuts” (e.g., someone telling you “I'll fix it at the mortgage office without any deed”); you absolutely need either an expert's report or an official valuation. Anything else would legally compromise your property (and it's unlikely to actually happen with the digitized system).
Loss of payment proof or failure to obtain the new certificate
After the revaluation, make sure the Cadastre system has reflected the new value. You can check on e-Albania (the “View Property Card” service) to see if the new value appears (this may take a few days after payment). Obtain a new property certificate for your file. There are cases where people had a revaluation but didn't get a confirmation, and years later had difficulty proving to the tax authorities that they had done it, until they found the old payment receipts. Therefore, document everything and keep it carefully (scan and save it to your email or the cloud, just in case).
Requirement for co-owner or partner cooperation
If the property is held jointly (e.g., spouses, brothers, business partners), communicate clearly about the decision to reappraise. Agreement is required, especially within the family; don't act behind anyone's back, as you could cause resentment (“Why did you pay for nothing?!” or, conversely, “Why didn't you revalue our house?!”). In a company, make the decision by board or shareholder resolution to revalue the asset (the accountant will require it for documentation). So include all relevant parties in the decision-making to avoid surprises or objections.
Property revaluation is an important financial process, so approach it with seriousness. Take advantage of expert advice: if you have a friend who is a financier, lawyer, or accountant, consult them. Even NAREA itself (the Association of Intermediaries) will offer assistance to the public (they even set up an informational hotline when the decree was expected). In economic media (TV Scan, Monitor, etc.) you can find explanatory programs. The more informed you are, the better you'll handle it.
In conclusion, make your decision based on cold economic calculation and your personal or business goals. This law has no political agenda or other motive besides offering you a technical opportunity for fiscal optimization. If it suits your needs, take the opportunity. If not, you are free to ignore it. We hope this guide has been helpful in understanding what the 2026 revaluation is, how it works, what the advantages and costs are, and how to successfully complete it. For any points of confusion, refer to the sources cited above and do not hesitate to seek professional assistance.
If you have read this far, we wish you success in your revaluation process!
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsFrequently Asked Questions (FAQ)
All real estate owners in Albania, both individuals and legal entities (businesses), as long as the property is registered (with an ownership certificate/property card).
The revaluation may be carried out during the period from January 1, 2026 to December 31, 2026.
The tax rate is 5%. It is calculated based on the difference between the currently registered value of the property and the new (market) value determined during the revaluation (considering possible deductions according to depreciation rules).
Without revaluation, a 15% tax on capital gains is usually applied at the time of sale. With revaluation, the owner pays 5% now on the value increase, typically saving about 2/3 of the tax liability that would be owed in the future.
There are two primary methods:
(1) Independent Licensed Expert: An appraiser provides a market value report.
(2) ASHK (Cadastre): Based on the official minimum fiscal reference prices for the specific area and property type.
In principle, no. If the property is not registered and lacks proper ownership documentation, you must first complete the registration or resolve the relevant legal issues.
Yes, the revaluation tax rate is 5% for both. however, for businesses, the payment may have accounting and fiscal effects (e.g., as a deductible expense or balance sheet impact), whereas for individuals, it is a direct payment.
It is generally beneficial when:
(1) You plan to sell the property in the near or medium term.
(2) The registered value is significantly lower than the real market value.
(3) You want to avoid a high 15% tax in the future.
No. Revaluation is strictly voluntary. It is a legal opportunity to lower future tax burdens and update the registered value of your assets.
After revaluation, the new value becomes the cost basis for calculating capital gains. This means that when you sell, the 15% tax will only be calculated on the increase after the revaluation, not on the entire historical difference.
According to the law's framework, there is a concept of depreciation (e.g., approximately 1% for each year of age). This can lower the taxable base for older buildings (e.g., a 30-year-old building might be taxed on approximately 70% of the value difference).
Applications are processed through the State Cadastre Agency (ASHK). In practice, this is expected to be available both online (via e-Albania) and physically at service counters, following official implementation guidelines.
[Download the full law here]
Free Real Estate Reassessment Consultation
Are you ready to take advantage of the new law on real estate revaluation, applicable until December 31, 2026?
Revaluation can:
- Significantly reduce the tax you pay when selling a property;
- Improve financial statement balances for legal entities (businesses);
- Facilitate the transfer of ownership for inherited or gifted assets.
If you are a property owner, business administrator, or legal entity, an external economist can help you:
- Choose the most profitable form of revaluation;
- Accurately calculate the tax liability;
- Prepare the documentation and avoid potential penalties.
Or contact us directly at: +355 69 323 2349 or [email protected]
