Albania Capital Gains Tax Guide: 15% Real Estate, 0% Shares 2026
Albania imposes capital gains tax (CGT) primarily on real estate transactions. Gains from the sale of real estate are taxed at 15% if sold within 3 years of acquisition. After 3 years, the gain is tax-free. Capital gains on shares, securities, and financial instruments are generally taxed at 0%. Here is how Albanian capital gains tax works in 2026.
Capital gains taxation in Albania is governed by the Income Tax Law and administered by the DPT. The system is designed to discourage short-term property speculation while encouraging long-term investment. Albania's CGT regime is favorable compared to regional peers — Greece taxes real estate gains at 15% with no time-based exemption, Italy at 26%, and Croatia at approximately 25% for short-term holdings. Property tax guide →
Real-world example: An individual buys an apartment in Tirana for ALL 8,000,000 and sells it 2 years later for ALL 10,000,000. Gain: ALL 2,000,000. CGT at 15% = ALL 300,000. If sold after 3 years, CGT = ALL 0. For a company selling the same property, the gain is treated as ordinary income and taxed at the standard CIT rate of 15%. Compare to Greece: even after 3 years, CGT at 15% would apply. Corporate tax rates →
Capital Gains Tax Rates
- Real estate (within 3 years): 15% on the gain (sale price minus purchase price and allowable costs)
- Real estate (after 3 years): 0% — gain is fully exempt from CGT
- Shares and securities: 0% — gains on sale of shares, bonds, and other financial instruments are tax-free
- Cryptocurrency: Treated as either CGT or business income depending on trading frequency and intent
- Business assets: Gains on disposal of business assets are treated as ordinary income and taxed at CIT rates
The 3-year holding period for real estate is calculated from the date of notarial acquisition to the date of notarial sale. Both individuals and legal entities follow the same holding period rules, though companies treat gains as business income.
Calculating the Gain
The taxable gain on real estate is calculated as:
- Sale price: The price stated in the notarial sale contract
- Minus purchase price: The price paid at acquisition (as per notarial deed)
- Minus allowable costs: Notary fees, registration fees, agent commissions, and capital improvements
- Equals taxable gain: Subject to 15% CGT (if within 3 years)
If the sale price is lower than the purchase price (a loss), no CGT is due. Capital losses cannot be offset against other income or carried forward. The reference value used by the DPT for tax purposes is the higher of the contract price or the property tax reference value.
Exemptions and Reliefs
- Primary residence: Gains from the sale of a primary residence may be exempt if conditions are met (holding period, reinvestment in another primary residence)
- Inheritance and gift: No CGT on property received through inheritance or gift (no inheritance/gift tax applies)
- Agricultural land: Certain agricultural land transactions may qualify for reduced rates or exemptions
- Reinvestment relief: If the proceeds from a property sale are reinvested in another property within a specified period, CGT may be deferred
Exemptions require documentation and may need prior approval from the DPT. The primary residence exemption is particularly valuable for homeowners looking to upsize or downsize.
Do non-residents pay CGT in Albania?
Yes. Non-residents selling Albanian real estate are subject to the same CGT rules as residents. The 15% rate applies if the property is sold within 3 years. After 3 years, 0%. The buyer's notary typically withholds the CGT and remits it to the DPT at the time of sale.
Is CGT on shares really 0%?
Yes. Albania does not tax capital gains on the sale of shares, bonds, or other securities for either residents or non-residents. This applies to both listed and unlisted securities. This makes Albania an attractive jurisdiction for holding and trading investments.
How is CGT collected?
For real estate transactions, the CGT is typically withheld by the notary public at the time of sale and remitted to the DPT. The buyer and seller declare the transaction details, and the tax is calculated based on the gain. The notary must confirm the tax has been paid before registering the transfer.