Authored by the expert who managed and guided the team behind the Albania Property Pack
Everything you need to know before buying real estate is included in our Albania Property Pack
Albania offers straightforward property ownership opportunities for foreigners, with minimal restrictions on residential and commercial real estate purchases. While foreigners can freely buy apartments and houses as individuals, certain types of property like agricultural land require setting up a local company, which is a simple two-week process.
If you want to go deeper, you can check our pack of documents related to the real estate market in Albania, based on reliable facts and data, not opinions or rumors.
Foreigners can legally purchase residential and commercial property in Albania without citizenship requirements, though agricultural and certain coastal land ownership requires establishing a local company.
Property prices range from €1,200-€2,500 per square meter in major cities, with total closing costs typically 4-5% of property value including transfer taxes, notary fees, and registration costs.
| Property Type | Foreign Ownership | Requirements |
|---|---|---|
| Residential Property (apartments, houses) | Fully allowed | None - direct individual ownership |
| Commercial Property | Fully allowed | None - direct individual ownership |
| Agricultural Land | Restricted | Must establish Albanian company |
| Coastal Land (within 200m of shore) | Restricted | Must establish Albanian company |
| Urban Development Land | Generally allowed | Case-by-case basis |
Can foreigners legally buy residential property in Albania without restrictions?
Yes, foreigners can legally purchase residential property in Albania with virtually no restrictions as of September 2025.
The Albanian legal framework allows non-residents to buy apartments, houses, and condominiums directly in their own name without requiring Albanian citizenship or residency status. You can register the property title at the National Cadastral Agency under your individual ownership.
This applies to all residential properties including new constructions, resale apartments, villas, and townhouses in urban areas. The process is straightforward and follows the same legal procedures as for Albanian citizens, with identical ownership rights and protections.
There are no nationality restrictions, minimum investment thresholds for residential purchases, or caps on the number of properties a foreigner can own. The only requirement is proper documentation and following standard purchase procedures through licensed notaries.
It's something we develop in our Albania property pack.
Are there any types of property that foreigners are not allowed to own, like agricultural land or coastal land?
Foreigners face restrictions on owning agricultural land and certain coastal properties, but these can be circumvented through company formation.
Direct individual ownership of agricultural land, bare land plots, and territory within 200 meters of the coastline is prohibited for non-Albanian citizens. This restriction stems from Albanian law designed to protect strategic national assets and agricultural resources.
However, foreigners can acquire these restricted property types by establishing an Albanian company, which acts as the legal owner. The company formation process takes approximately two weeks and costs around €500-€1,000 including legal fees and registration costs.
Some coastal developments and beachfront properties may fall under these restrictions depending on their exact location and zoning classification. Urban coastal properties like seaside apartments in Saranda or Durres are typically exempt from these restrictions.
The company route provides full ownership control while complying with Albanian law, making it a practical solution for foreigners interested in agricultural investments or premium coastal land.
Do foreigners need to set up a company in Albania to own certain types of property?
Company formation is only required for foreigners wanting to own agricultural land or specific coastal properties, not for standard residential or commercial real estate.
For apartments, houses, offices, retail spaces, and most urban properties, foreigners can purchase directly as individuals without any corporate structure. The company requirement specifically applies to agricultural land, bare land plots, and properties within 200 meters of the shoreline.
Setting up an Albanian company is a straightforward process managed by local lawyers or business formation services. The typical timeline is 10-14 business days with costs ranging from €500-€1,500 depending on the service provider and complexity.
The company can be 100% foreign-owned with a single shareholder and director. Minimum share capital requirements are modest at around €100, and annual compliance costs are approximately €200-€400 for accounting and filing obligations.
This corporate route provides the same ownership security and transfer rights as individual ownership, making it an effective workaround for accessing restricted property categories.
What are the average property prices per square meter in popular places like Tirana, Durres, or Saranda?
| City | Price Range (€/sqm) | Premium Locations |
|---|---|---|
| Tirana - City Center | €1,800 - €2,300 | New developments near Skanderbeg Square |
| Tirana - Suburbs | €1,200 - €1,500 | Residential areas like Kombinat, Sauk |
| Durres - Waterfront | €1,500 - €2,000 | Sea view apartments near port area |
| Durres - Inland | €600 - €1,200 | Older buildings away from coast |
| Saranda - Seafront | €2,000 - €3,500 | Prime beachfront developments |
| Saranda - City Center | €1,500 - €2,000 | Walking distance to beach and amenities |
| Vlore - Coastal | €1,200 - €1,800 | Beach access properties |
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How much is the property transfer tax, notary fees, and other closing costs when buying as a foreigner?
Total closing costs for foreign buyers typically range from 4-5% of the property purchase price.
1. **Property Transfer Tax**: 2-3% of the declared property value, paid by the buyer to the Albanian tax authorities 2. **Notary Fees**: 0.23-0.35% of property value plus 20% VAT, calculated on a sliding scale based on transaction amount 3. **Registration Fees**: €85-€150 for title registration at the National Cadastral Agency 4. **Legal Due Diligence**: €500-€1,500 for comprehensive title checks and legal representation 5. **Agency Commission**: 1-3% split between buyer and seller, sometimes included in advertised priceFor a €150,000 apartment purchase, expect approximately €6,000-€7,500 in total closing costs. Property transfer tax represents the largest single expense, followed by notary fees which are mandatory for all real estate transactions.
Legal due diligence is strongly recommended given Albania's complex property history and potential title issues. Some buyers also budget for property surveys and technical inspections, adding another €300-€800 to costs.
It's something we develop in our Albania property pack.
Is financing available to foreigners from Albanian banks, and if so, what are the down payment and interest rate requirements?
Mortgage financing for foreign buyers in Albania is extremely limited and most transactions are completed with cash payments.
Albanian banks rarely offer mortgages to non-residents due to strict lending criteria, income verification requirements, and risk assessment policies. Most major banks including Raiffeisen Bank Albania and Intesa Sanpaolo Bank require local employment or significant ties to Albania.
When mortgages are available to foreigners, typical requirements include 30-40% down payment, proof of stable income from the home country, and Albanian bank account establishment. Interest rates for foreign borrowers range from 6-9% annually for Euro-denominated loans.
Alternative financing options include developer financing for new construction projects, where some builders offer 1-2 year payment plans with 20-30% down payment. Private lending through Albanian individuals or companies is also possible but requires careful legal structuring.
The cash-heavy market means foreign buyers should prepare for full payment at closing, making Albania more suitable for investors with available liquid capital.
Are there any annual property taxes or ongoing costs foreigners should expect to pay after buying?
Annual property ownership costs in Albania are remarkably low compared to other European countries.
Annual property tax rates are approximately 0.05% of the assessed property value, though some municipalities may charge slightly higher rates. For a €150,000 property, expect annual property taxes of around €75-€150.
Ground tax applies to the land portion and ranges from 0.14-0.56 Albanian Lek per square meter, which translates to negligible amounts in Euro terms - typically under €50 annually for most residential properties.
Apartment buildings with shared facilities charge monthly maintenance fees of €20-€50 covering common area cleaning, security, elevator maintenance, and building insurance. Utilities including electricity, water, heating, and internet average €80-€150 monthly for a standard two-bedroom apartment.
Property insurance is optional but recommended, costing approximately €150-€300 annually for comprehensive coverage. Some coastal properties may face higher insurance premiums due to weather exposure.
How secure are property rights in Albania, and how can a foreigner make sure the title deed is clean and registered?
Property rights in Albania are legally secure when properly registered, but thorough due diligence is essential due to historical ownership complexities.
Albania provides full legal protection for registered property owners through the National Cadastral Agency, which maintains comprehensive property records. Foreign owners have identical rights to Albanian citizens regarding ownership, transfer, and inheritance.
Due diligence should include verification at the Immovable Property Registration Office to confirm clean title, absence of liens or encumbrances, and proper registration status. Historical restitution claims from the communist era can affect some properties, making legal checks crucial.
Essential verification steps include checking property boundaries match cadastral records, confirming building permits for any constructions, and verifying the seller's legal right to transfer ownership. Professional legal representation is strongly advised given language barriers and complex documentation requirements.
The registration process at the National Cadastral Agency provides final legal security, ensuring the property title is recorded in the buyer's name with full legal standing. This registration is mandatory for complete ownership protection.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Albania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Can foreigners easily sell their property later, and are there restrictions on repatriating the money abroad?
Foreigners face no restrictions on selling their Albanian property and can freely repatriate sale proceeds abroad.
The resale process follows identical procedures for foreign and Albanian owners, with no government approval required for property transfers. Foreigners can sell to other foreigners, Albanian citizens, or companies without limitations.
Capital gains tax applies to profits from property sales, calculated as the difference between purchase and sale price. The tax rate is typically 15% on gains, though exemptions may apply for primary residences held over certain periods.
Money repatriation requires proper documentation including sale contracts, tax payment receipts, and bank transfer records. Albanian banks facilitate international transfers following standard anti-money laundering procedures and EU banking regulations.
The process typically takes 1-3 business days for wire transfers to European banks, with transfer fees ranging from €20-€50 depending on the amount and destination. There are no government restrictions on transfer amounts or destination countries.
Are there residency or visa benefits linked to buying property in Albania, like a golden visa or long-stay permit?
Property ownership in Albania provides a pathway to residency permits but does not automatically grant visa-free status.
Foreigners who own at least 50% of a property can apply for renewable residence permits through the Albanian immigration authorities. There is no minimum investment threshold, making even modest property purchases eligible for residency consideration.
The residence permit application process requires proof of property ownership, clean criminal background check, health insurance, and sufficient financial means. Processing typically takes 2-3 months with permits initially granted for one year and renewable thereafter.
Albania's citizenship by investment program requires a minimum €250,000 real estate investment, significantly higher than the basic residency threshold. This "golden visa" pathway leads to Albanian citizenship after maintaining investment and residency requirements.
Long-stay permits for property owners support visa applications for other European countries and provide legal basis for extended stays in Albania. However, these permits do not grant automatic EU access or Schengen zone benefits.
How long does the buying process usually take from signing a contract to getting the property registered?
The complete property purchase process in Albania typically takes 4-8 weeks from contract signing to final registration.
Initial contract signing and due diligence phase requires 1-2 weeks, including property verification, legal checks, and documentation review. This timeline assumes cooperation from sellers and availability of required documents.
Notarization and official contract execution takes 3-5 business days once all parties agree on terms and complete documentation. The notary public verifies all legal requirements and facilitates the formal property transfer.
Registration at the National Cadastral Agency requires an additional 1-2 weeks for processing and title transfer completion. This timeline can extend during peak periods or if additional documentation is required.
Faster completion is possible with experienced legal representation, complete documentation preparation, and cash payments. Complex transactions involving companies, agricultural land, or disputed titles may require additional time for resolution.
It's something we develop in our Albania property pack.
What are the main risks foreigners face when buying property in Albania, and how can they protect themselves?
The primary risks for foreign buyers include incomplete titles, informal sales practices, and construction permit issues.
**Key Risks:** 1. **Historical title disputes** from communist-era property restitution claims affecting ownership clarity 2. **Informal construction** where buildings lack proper permits or violate zoning regulations 3. **Off-plan purchase risks** with developers who may not complete projects or deliver as promised 4. **Documentation fraud** including falsified ownership papers or misrepresented property boundaries 5. **Hidden liens or encumbrances** not disclosed during initial property presentations **Protection Measures:** 1. **Engage qualified local lawyers** specializing in real estate transactions and foreign buyer representation 2. **Verify all documentation** at official registries including cadastral office and municipal permit departments 3. **Avoid cash-only transactions** and ensure all payments are properly documented and receipted 4. **Conduct thorough property inspections** including structural, legal, and zoning compliance checks 5. **Use licensed real estate agents** and reputable notaries with established track recordsProfessional due diligence typically costs €500-€1,500 but provides essential protection against these risks. The investment in proper legal checks far outweighs potential losses from problematic purchases.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Albania presents an attractive opportunity for foreign property buyers with straightforward legal frameworks, competitive pricing, and minimal ownership restrictions for residential real estate.
While certain property types require company formation and thorough due diligence is essential, the market offers solid investment potential with low ongoing costs and flexible exit strategies for international investors.
Sources
- Armenian Lawyer - Albania Investment Guide
- InvestRopa - Albania Real Estate for Foreigners
- Arab MLS - Foreigners Buy Property Albania
- Own Property Abroad - How to Buy Property Albania
- Arka Home - Buying Property Albania Guide
- Albanian Properties - Land Buying Laws
- Balfin Real Estate - Foreigners Property Guide
- InvestRopa - Tirana Real Estate Market
- Folie Village - Albania Property Taxes
- InvestRopa - Albania Buy Property Guide