TIRANA, December 23 – Finance Minister Petrit Malaj said the 5% rate set in the law on real estate revaluation reflects the depreciation of residential properties.

He addressed the issue during a meeting with the business community on the Fiscal Package and the Fiscal Peace policy.

Malaj explained that the effective revaluation rate changes depending on the age of the property. Based on Ministry of Finance calculations, a 10-year-old apartment carries an effective rate of about 2.4%, while a five-year-old apartment reaches roughly 3.2%.

By contrast, he clarified that the full 5% rate applies only to newly built housing. In such cases, revaluation does not apply, as new properties are assumed to already reflect real market value.

Turning to taxation, Malaj responded to questions on whether profit tax rates from real estate transactions could be reduced. He said the Ministry of Finance is not currently considering such a move.

Instead, the ministry is reviewing the entire fiscal framework to ensure alignment with European Union requirements and directives. This process, he added, aims to unify fiscal legislation and bring it fully in line with EU standards.

Malaj stressed that if the European Union framework provides for lower tax rates on real estate transactions, Albania will move in the same direction.

/a.p./