FAQ

Ok, so why is Albania a good place to invest in NOW?

Well, we have a number of reasons, starting with a little bit of history.

For 50 years following the end of World War II the country was led by a communist dictator, Enver Hoxha, you may have heard of him. Hoxha was during this time preoccupied with securing the country's defences rather than rebuilding its economic position, so whilst vast quantities of money were being poured into concrete bunkers along the entire coastline of Albania, economically the country hit rock bottom. With the doors firmly shut against the outside world and with little investment going into the country's infrastructure, this country was given a wide berth. By 1992 when the regime collapsed there was, some would say, an inevitable period of chaos, however the political situation settled by 2002/2003. So our first reason is as the saying goes, when you hit rock bottom the only way is up.

Our second reason would be that in a paradoxical twist the lack of investment during the communist regime meant that the natural beauty of the country remained untouched. To a large extent this still remains the case today.

Thirdly investment is coming into the country from large foreign corperations and when the big players are interested it is definitely time to take a look.

Fourthly the government is committed to improving the country's infrastructure, which is currently still lacking, however progress is staggering . The speedy progression of the new motorway/autostrada (running from Albania's capital, Tirane to Vlore and branching off from Fier - a district to the north of Vlore - towards Gjirokaster and Saranda) together with the go ahead for a new airport in Saranda, (Albania's most southern port), are all significant improvements.

Albania is hoping to join the EU in 2013 and is making a concerted effort to achieve this goal. Whether or not they manage to join the EU in 2013 is debatable, however learning from example we can certainly anticipate the effect on real estate prices in Albania upon accession. We say it is better to be ahead of the crowd than to follow it.

Finally statistics count. 2 years ago apartments in Saranda were selling for approximately 450 Euros per m², now front line apartments are selling in excess of 850 Euros per m². Prime coastal land was selling 2 years ago for slightly over 100 Euros per m² and is now selling for as much as 300 Euros per m2.

What other costs will I need to pay when purchasing a property in Albania?

Costs?

When purchasing a newly built apartment, the cost of the apartment should include registration of that apartment with the Land Registry in your name. At present there is no purchase tax (stamp duty land tax) payable by the buyer.

You will however be responsible for your solicitor's fees as well as notary costs. On a standard purchase, solicitors costs range from 1,000 Euros to in excess of 3,000 Euros, so it is advisable to agree a total fee upfront, rather than on an hourly rate basis . A notary is used for witnessing signatures and they charge approx 50 Euros for transactions up to 200,000 Euros. (This is however dependant on region, so instructing a solicitor in Tirana, means that your solicitor will probably recommend a notary in Tirana). As solicitors here work closely with notaries, it would be a good idea to obtain a quote on notary costs at the same time as obtaining your quote on solicitors fees.

Depending on the tax legislation in your country, foreign citizens may be subject to income tax here as well as in your country, where income is received from the property following purchase, i.e rental income.

When selling a property, a buyer will be subject to capital gains tax in Albania, which is currently 10% of the gain made on the sale. This applies even if you are selling your main property i.e. not an investment property.