Housing Finance Policy

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    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)Civil LawCivil LawCivil Law
    CIA World Factbook
    		A.1.1
    Are there specific laws that deal with mortgages? YesYesYesA.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYesA.1.3.1
     Are property rights easily transferable?NoNoNoA.1.3.2
    Identify barriers to the registration/ transfer of property title.The procedures are cumbersome and registrants have complained of corruption in the process. Recent changes to legislation allow a notary public to have access to real estate registers and confirm the legal ownership of property. The process of registering property remains cumbersome and difficult to navigate. For large transactions, it is advisable to hire an attorney to check documents and procedures for property registration. There are many challenges in the Albanian real estate market. During the 1990s, institutional and legal actions were taken by the authorities to implement land and property rights. However, the political, economic and demographic changes during this period created much confusion and difficulties. These difficulties still exist today, specifically in the administrative side of property rights. There are many challenges in the Albanian real estate market. During the 1990s, institutional and legal actions were taken by the authorities to implement land and property rights. However, the political, economic and demographic changes during this period created much confusion and difficulties. These difficulties still exist today, specifically in the administrative side of property rights.
    Friedrich Ebert Stiftung
    		A.1.3.3
    Typical number of days needed for the transfer of title192222
    WDI
    		A.1.3.4
    Is there specialized legislation covering:A.1.9
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    B.2 Subsidies to Households
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    Are there subsidies to households on housing finance?YesYesYes
    United Nations Development Programme
    		B.2.1
    Interest rate subsidies by special government fundsYesYesYes
    United Nations Development Programme
    		B.2.1.1
    OtherYesYesYes
    United Nations Development Programme
    		B.2.1.6
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) YesYes 
    Global Property Guide
    		C.1.1
    Property transaction taxes (purchase/selling)YesYes 
    Invest-In-Albania
    		C.1.2
    Mortgage transaction taxesYesYes 
    Global Property Guide
    		C.1.3
    Tax on capital gains on property YesYes 
    Global Property Guide
    		C.1.5
    OtherYesYes 
    Global Property Guide
    		C.1.6
    back to top | Country Data:
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    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: Data is derived from the State Department's Office of Investment Affairs' Investment Climate Statement.
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: IMF estimate
    Notes: low-cost housing, mortgage interest subsidy, social housing, housing allowance
    Notes: low-cost housing, mortgage interest subsidy, social housing, housing allowance
    Notes: Mortgage costs – can be around 2% of the property value
    Notes: Mortgage costs – can be around 2% of the property value
    Notes: Mortgage costs – can be around 2% of the property value
    Notes: Purchase tax (and notary fees) come to around 1% when purchasing property in Albania. VAT is applied at the rate of 0% on new build Albanian property.
    Notes: Purchase tax (and notary fees) come to around 1% when purchasing property in Albania. VAT is applied at the rate of 0% on new build Albanian property.
    Notes: Purchase tax (and notary fees) come to around 1% when purchasing property in Albania. VAT is applied at the rate of 0% on new build Albanian property.
    Notes: Rental income tax is levied at 15%
    Notes: Rental income tax is levied at 15%
    Notes: Rental income tax is levied at 15%
    Notes: Source: Bank of Albania Statistical Report - December '11 Household loans by purpose and currency. Real Estate (in millions ALL) = ALL (22238.3) + USD (1796.0) + EUR (64177.6)
    Notes: Source: Bank of Albania Statistical Report - July '13 Household loans by purpose and currency - Real Estate (in millions ALL) = ALL (27782.7) + USD (1756.7) + EUR (70107.7)
    Notes: Source: Bank of Albania Statistical Report - July '13 Household loans by purpose and currency - Real Estate (in millions ALL) = ALL (30285.5) + USD (1606.5) + EUR (68167.1)
    Notes: Source: Bank of Albania Statistical Report - July '13 Household loans by purpose and currency - Real Estate (in millions ALL) = ALL(33014.8) + USD (1354.1) + EUR (66055.3)
    Notes: Source: Bank of Albania Statistical Report - November '12 Household loans by purpose and currency. Real Estate (in millions ALL) = ALL(25591.3) + USD (1846.1) + EUR (70031.3)
    Notes: Source: Bank of Albania Statistical Report - September '10 Household loans by purpose and currency. Real Estate (in millions ALL) = ALL (17508.4) + USD (2141.8) + EUR (46223.3)
    Notes: Table 1.4.8 Private Households by tenure status, ownership of occupied dwelling and by urban area 2011-2011 Total Urban = 409309 Total Owner Occupied Units = 8493 + 362191
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Mortgage interest subsidy" (MIS) program provides loans with the interest subsidized. The loan is originated by private banks but the subsidy is provided by the state. This program is targeted for teachers, public employees, and those with medium income.
    Notes: The "Mortgage interest subsidy" (MIS) program provides loans with the interest subsidized. The loan is originated by private banks but the subsidy is provided by the state. This program is targeted for teachers, public employees, and those with medium income.
    Notes: The "Mortgage interest subsidy" (MIS) program provides loans with the interest subsidized. The loan is originated by private banks but the subsidy is provided by the state. This program is targeted for teachers, public employees, and those with medium income.
    Notes: The "Mortgage interest subsidy" (MIS) program provides loans with the interest subsidized. The loan is originated by private banks but the subsidy is provided by the state. This program is targeted for teachers, public employees, and those with medium income.
    Notes: The Capital Gains tax rate is 15% and that is levied on sales price minus acquisition cost and expenses.
    Notes: The Capital Gains tax rate is 15% and that is levied on sales price minus acquisition cost and expenses.
    Notes: The Capital Gains tax rate is 15% and that is levied on sales price minus acquisition cost and expenses.
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The Real Property tax is dependent on location, property type and value of the home.
    Notes: The Real Property Tax is dependent on location, property type and value.
    Notes: The Real Property Tax is dependent on location, property type and value.