Investing in Albanian Real Estate for Expats

Published on October 3, 2025 and written by Cyril Jarnias

Albania, a Balkan country experiencing economic growth, is attracting more and more foreign investors, particularly in the real estate sector. For expatriates looking to invest in this promising market, it is crucial to understand the local specifics and the challenges related to such an investment. This detailed guide will help you navigate the complexities of real estate investment in Albania, covering essential legal, financial, and practical aspects.

The Albanian real estate market: attractive potential for expatriates

Albania has experienced sustained economic growth for several years, which is reflected in its dynamic real estate market. The capital Tirana, as well as coastal cities like Saranda or Vlorë, are particularly popular with foreign investors. Real estate prices, although rising, remain competitive compared to other European destinations, thus offering interesting opportunities for expatriates.

The Albanian real estate market offers several advantages:

• Attractive prices, especially in coastal areas
• Significant capital gains potential in the medium and long term
• Favorable taxation for foreign investors
• A regulatory framework increasingly favorable to foreign investment

However, it is important to note that the Albanian real estate market can be complex for foreigners to grasp, due to local specifics and an ever-evolving legal framework. Therefore, it is essential to research thoroughly and surround yourself with competent professionals before embarking on an investment.

Legal and regulatory framework for real estate purchase in Albania

Albania has significantly relaxed its legislation regarding the acquisition of real estate by foreigners in recent years. Since 2012, foreign nationals can purchase real estate in their own name, with the exception of agricultural land. This development has greatly facilitated real estate investment for expatriates.

Here are the main legal provisions to know:

• Foreigners can purchase apartments, houses, and buildable land without restrictions
• The purchase of agricultural land remains reserved for Albanian citizens or companies majority-owned by Albanians
• Real estate transactions must be registered with the Real Estate Registration Office
• A notary must necessarily intervene to authenticate the sales deed

It is important to emphasize that the Albanian cadastral system is still undergoing modernization. Therefore, it is crucial to meticulously check the legal status of the property before any purchase, particularly regarding property titles and any ongoing disputes.

To secure your investment, it is highly recommended to hire a lawyer specialized in Albanian real estate law. This professional can guide you through the administrative procedures and ensure the legality of the transaction.

Financing and banking aspects for expatriates

Financing a property in Albania can prove complex for expatriates. Albanian banks are generally reluctant to grant real estate loans to non-residents, due to difficulties in assessing their creditworthiness and recovering debts in case of default.

Nevertheless, several options are available to expatriates to finance their investment:

• Financing in the home country: Some international banks offer loans for purchasing real estate abroad
• Cash payment: Many expatriates opt for this solution, given the attractive prices in the Albanian market
• Creating an Albanian company: This option can facilitate obtaining a loan from a local bank
• Seller financing: Some real estate developers offer payment facilities to foreign buyers

It is important to note that interest rates in Albania are generally higher than in Western countries. In 2025, rates for real estate loans range between 3.5% and 5% for loans in euros, and between 5% and 7% for loans in Albanian lek.

For real estate transactions, it is recommended to open a bank account in Albania. The country’s main banks, such as Raiffeisen Bank, Intesa Sanpaolo Bank, or Tirana Bank, offer services tailored to expatriates.

Real estate taxation for expatriates in Albania

Real estate taxation in Albania is relatively advantageous for foreign investors. Here are the main taxes and fees to consider:

• Real estate transaction tax: 0.5% to 3% of the sale price, depending on the property’s location
• Rental income tax: 15% of gross income for individuals
• Annual property tax: varies by location and surface area of the property, generally between 0.05% and 0.2% of the property’s value
• Real estate capital gains: 15% on the capital gain realized upon resale of the property

It is important to note that Albania has signed tax treaties with many countries, including France, to avoid double taxation. These agreements allow expatriates not to be taxed twice on their real estate income.

To optimize your taxation, several strategies can be considered:

• Creating an Albanian company to hold the real estate property
• Investing in areas benefiting from tax advantages
• Estate planning to minimize inheritance taxes

It is highly recommended to consult an Albanian accountant or tax lawyer to develop a tax strategy suited to your personal situation.

Purchase process and administrative procedures

Purchasing a property in Albania involves several steps and administrative procedures. Here is an overview of the process:

1. Property search: It is recommended to use a local real estate agency to assist in your search.

2. Legal verification: Before making any offer, have the legal status of the property checked by a specialized lawyer.

3. Negotiation and preliminary sales agreement: Once the property is chosen, negotiate the price and sign a preliminary sales agreement.

4. Obtaining a tax number: Foreigners must obtain a tax number from the Albanian authorities to complete the transaction.

5. Signing the sales deed: The sale is finalized before a notary, who authenticates the deed.

6. Property registration: The property must be registered with the Real Estate Registration Office.

7. Tax payment: Taxes related to the transaction must be paid within the specified deadlines.

It is crucial to ensure that all necessary documents are in order and that all procedures are carried out in compliance with Albanian legislation. The use of local professionals (lawyer, notary, real estate agent) is highly recommended to secure the transaction.

Rental management and rental yield in Albania

Rental investment in Albania can be particularly interesting for expatriates, especially in tourist areas. Gross rental yields can reach 6% to 8% in the best locations, which is significantly higher than in many European countries.

Here are some key points to consider for rental management:

• Seasonal rental: Very popular in coastal areas, it can generate high income during the summer season
• Long-term rental: More stable, it is favored in large cities like Tirana
• Remote management: Many agencies offer rental management services for non-resident owners
• Regulation: Rental contracts must be registered with the tax authorities

It is important to note that the Albanian rental market is still developing and may present certain particularities. A good knowledge of the local market and tenant expectations is essential to maximize the return on your investment.

To optimize your rental investment, consider the following strategies:

• Target areas with high tourist or economic potential
• Invest in renovation to attract quality tenants
• Diversify your portfolio between seasonal and long-term rentals
• Hire a professional rental management agency

Risks and precautions for real estate investment in Albania

Although real estate investment in Albania presents many opportunities, it also involves certain risks that should be taken into account:

• Legal instability: The legal framework is evolving rapidly, which can create uncertainties
• Property disputes: Property title issues can arise, especially for older properties
• Construction quality: Some recent constructions may have defects
• Market fluctuations: The Albanian real estate market can be volatile
• Exchange rate risk: For investors using foreign currency

To minimize these risks, it is essential to take certain precautions:

• Conduct thorough due diligence before any purchase
• Surround yourself with trusted local professionals (lawyer, notary, real estate agent)
• Meticulously check all documents related to the property
• Consider title insurance if available
• Diversify your investments to spread risks

It is also recommended to stay informed about the country’s legislative and economic developments to anticipate potential changes that could affect your investment.

Future prospects of the Albanian real estate market

The Albanian real estate market presents encouraging prospects for the coming years. Several factors contribute to its growth potential:

• Tourism development: Albania is attracting more and more visitors, stimulating real estate demand in tourist areas
• Infrastructure modernization: Significant investments are being made in transportation and public services
• European integration: Albania’s efforts to move closer to the European Union promote economic stability
• Growing local demand: The improvement in Albanians’ standard of living stimulates the residential real estate market

Experts predict continued growth of the Albanian real estate market in the coming years, with particularly interesting opportunities in coastal cities and the capital Tirana. However, it is important to remain vigilant about potential market fluctuations and regulatory developments.

For expatriate investors, it may be wise to:

• Focus on areas with high development potential
• Invest in quality properties to attract an international clientele
• Consider long-term investments to fully benefit from market growth
• Stay informed about market developments and emerging opportunities

In conclusion, real estate investment in Albania represents an interesting opportunity for expatriates, offering potentially high returns in a growing market. However, it is crucial to approach this market with caution, by surrounding yourself with competent professionals and conducting thorough due diligence. With a good understanding of local specifics and a well-thought-out investment strategy, expatriates can take advantage of the promising potential of the Albanian real estate market.