Agricultural land and land plots have separate taxes from buildings, and their base is not the property value but the area. Agricultural land is measured in hectares, with rates varying by land category and county, while land plots are measured in square meters, with rates varying by use, i.e., residential or economic activity.
This page shows who pays each tax, how the base is measured, why the same owner may have two parallel obligations for the same property, and how exemption cases are handled. The specific rates are not published here, as they are approved by municipal council resolution within the limits set by law.
Read also: How is the building tax calculated?.
The obligation falls on the property holder—that is, the owner—and, in certain cases, on the holder of a real right or the user. For agricultural land worked by another, the person liable to the municipality remains the owner, while the agreement on who covers the cost regulates only the relationship between the parties.
For a jointly owned property, the obligation arises according to each co-owner's share. In practice, the municipality's notice often arrives at a single address, so the co-owners handle the division and safekeeping of the payment receipts themselves.
The basis for measuring each tax
| Taxes | Measuring unit | What changes the level? |
|---|---|---|
| Agricultural land tax | Hectare | Land category and district |
| Land tax | Square meter | Destination: residential or economic activity |
| Building tax | Taxable value | Destination and area, according to Government Decree 132/2018 |
The distinction between the unit has practical consequences. For land and real estate, the tax does not increase when the property's value rises, because the base is the area. For the building, the opposite applies, because the base is the taxable value.
Agricultural land is land designated for agricultural use, while building land is land intended for construction, whether occupied or vacant. The conversion of land from agricultural land to building land is carried out by an act of the competent authority, and once converted the applicable tax also changes.
A property owner whose building occupies a lot larger than its footprint often has two parallel obligations: the building tax on the structure and the land tax on the open area. This is the typical case of a manufacturing unit or warehouse with a yard, where the open yard area is much larger than the building's footprint.
Caution. The levels in lek per hectare and in lek per square meter, as well as the breakdown by land categories and by counties, are not published without being verified in the annexes of Law No. 9632/2006 and the municipality's decision.
Illustrative example, with hypothetical figures and not the official rates. A business has a 500-square-meter plot, on which the building occupies 120 square meters, so the free area is 380 square meters. At a hypothetical rate of 12 lek per square meter, the land tax amounts to 4,560 lek. The same business also has 2.5 hectares of agricultural land, and at a hypothetical rate of 1,400 lek per hectare, the land tax amounts to 3,500 lek. Together, the illustrative liability amounts to 8,060 lek, excluding the building tax and fees. The actual rates are specified in the municipal council's decision.
Caution. The rule that land tax applies only to the vacant area and not to the building footprint is a practical description. The correct treatment of the building footprint within the plot must be confirmed by law. No. 9632/2006 and the municipality's decision.
Read also: What taxes are paid to the municipality?.
The law provides for categories of properties and entities that are exempt from the tax, and the municipal council may grant relief within the authority granted by law. Exemption is not automatic; documentation proving the eligibility must be submitted to the municipality.
In our practice, we see three situations that require oversight. The first is land temporarily taken out of use, the second is land expropriated or held for public interest, and the third is property transferred to an entity with special legal treatment. In all three cases, the obligation remains on the books until the status is updated in the municipal records.
Caution. The exact list of exemptions and reliefs, both for agricultural land and for building plots, is not published until the current text of the law has been read. No. 9632/2006 and the municipal council's decision for the relevant year.
The check is done directly at the municipal local taxes counter, using the property number and the title deed. Proof of payment of local obligations is required anyway before the sale of the property, so conducting the check in advance saves time at the time of the transaction.
Read also: Local fees and infrastructure impact tax.
The vacant land around the building is not declared because the owner believes the building tax covers the entire property.
The undivided agricultural land held by co-owners is shown as unpaid because the notice was sent to only one of them.
The area is calculated based on the cadastral data rather than the title deed, and the obligation is therefore inaccurate.
The conversion of agricultural land to building lots is not reflected, so the wrong tax has been applied for years.
The exemption is assumed to be recognized automatically, without submitting documentation to the municipality.
Uncultivated land is considered taxable, whereas mere nonuse does not automatically extinguish the obligation.
The obligation only arises at the time of sale, when proof of payment is required.
The base is the area in hectares, and the rate varies by land category and by district, as determined by the municipal council within the limits of the law.
The base is the area in square meters, and the rate varies depending on the destination, i.e., residential or economic activity.
Usually yes: the building tax for construction and the land tax for the open area. The correct treatment of the building footprint is checked with the municipality.
Non-use does not automatically extinguish the obligation. Cases of exemption or relief are provided for by law and by municipal ordinance, and require documentation.
The addressee vis-à-vis the municipality remains the owner. The agreement with the user only regulates the relationship between the parties.
The obligation arises according to each co-owner's share. In practice, the division is arranged among the co-owners, while notices are often sent to a single address.
At the municipal level. Local taxes are administered by the municipality and are not declared on e-Filing.
There is no single national figure. The rate is approved by the municipal council's decision within the limits of the law, so check with your municipality.
Law No. 9632, dated 30.10.2006 “For the local tax system,” as amended, for agricultural land tax, plot tax, indicative levels and cases of exemption, where Chapter III has been repealed by Article 71 of Law No. 29/2023.
The Council of Ministers' Decision No. 132, dated March 7, 2018, The methodology for determining the taxable value of real estate for comparison with the building base.
Joint instruction No. 17, dated June 20, 2022, for the administration of local taxes
The municipal council's decision for the relevant year, which sets the levels, reliefs, and deadlines, and which is reviewed for each municipality separately.