Tax of real estate transactions
16/06/2011 16:15
State nurse is paid without going to work, instead sells drugs from the pharmaceutical warehouse with the support of the director in Bushat 18/04 21:24
Three years ago, the Albanian Parliament passed a law proposed by the
government, which obliges the citizens who sell their real estates to
pay tax on profit for this transaction. According to the law, the tax
is 10% of the difference between the price of the apartment when it was
bought in the past and the price when it was resold.
Due to the real estate price increases, this formula is producing a heavy tax burden. Most affected are those who want to sell apartments that were bought more than five years ago.
The present value of an apartment that was bought for 40,000 USD in 2000, in 2011 is 120,000 USD. If the owner would try to sell the apartment today, he would pay a total of 8000 USD to the state. Since this tax blocked the real estate market, the government has approved an article in the fiscal amnesty law which gives individuals the right to reassess their apartments with the current price.
After the reassessment, the individuals will pay 1% of the difference, instead of 10. In the example given above, the 8000 USD tax becomes 800 USD. This benefit will be possible only if the individuals will reassess their real estates, otherwise they will pay the old tax of 10%.
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