Albania, with its affordable real estate market, has become an increasingly popular destination for foreign property buyers. Whether you’re looking for a vacation home on the Albanian Riviera or a long-term investment in the capital, buying property in Albania can be a straightforward process if you follow the right steps. In this guide, we’ll walk you through everything you need to know about purchasing property in Albania as a foreigner.

1. Familiarize yourself with the legal requirements for foreign buyers

Foreign nationals are allowed to buy property in Albania, but there are a few important legal considerations to keep in mind:

  • EU and EEA citizens: Citizens of the European Union (EU) and European Economic Area (EEA) countries can buy property in Albania with the same rights as Albanian nationals. They can purchase residential, commercial, and agricultural land.
  • Non-EU and Non-EEA citizens: Foreigners from outside the EU/EEA can buy property, but there are some restrictions, particularly when it comes to purchasing land. Non-EU citizens must set up a legal entity (a company) in Albania if they want to purchase land, but this rule does not apply to residential properties like apartments or houses.

2. Choose the right property

Once you’ve determined your eligibility to buy, the next step is to decide what type of property suits your needs. In Albania, you can find various property types, from apartments in bustling cities like Tirana and Durrës to villas along the scenic Albanian Riviera or rural estates.

Consider the following:

  • Urban properties: Apartments in cities like Tirana, Durrës, and Vlora are ideal for those looking for investment opportunities or easy access to amenities, shops, and services.
  • Vacation homes: If you’re looking for a second home or a vacation property, villas along the coast, in areas like Ksamil or Dhërmi, are popular choices.

3. Open a bank account in Albania

Before proceeding with the purchase, you will need to open a local bank account in Albania. This is required for transferring funds and paying for the property. You’ll need to provide identification documents and proof of your address, as well as any additional paperwork requested by the bank.

4. Negotiate the price and sign a preliminary agreement

Once you’ve found the right property, it’s time to negotiate the price with the seller. After agreeing on the price, both parties will typically sign a preliminary sales agreement. This agreement outlines the terms and conditions of the sale, including the price, payment terms, and the timeline for the final transfer of ownership.

5. Due diligence

Your lawyer will conduct due diligence on the property, which typically includes:

  • Verifying that the seller is the legitimate proprietor.
  • Ensuring there are no debts, mortgages, or legal disputes associated with the property.
  • Verifying the property’s registration status and any potential planning or zoning issues.

6. Final sale agreement

Once due diligence is complete, the final step is to sign the Notary Deed in front of a notary public. The buyer and seller will both sign the final sale agreement, and the notary will certify the transfer of ownership.

At this point, you’ll need to pay the agreed-upon price and any taxes or fees related to the transaction. The notary will then officially register the property in your name with the Albanian Land Registry.

7. Pay taxes and fees

As a property buyer in Albania, you will be responsible for a few taxes and fees:

  • Transfer Tax: This is typically 3% of the property’s value and is paid by the buyer.
  • Notary Fees: These are usually between 0.5% to 1% of the property’s sale price.
  • Registration Fees: There are fees for registering the property with the Land Registry.
  • Annual Property Tax: After purchase, you will also be responsible for an annual property tax, which varies depending on the property’s location and size.

8. Enjoy your new property

Once the property is registered in your name, you officially own it! You can now start using it for personal enjoyment, rent it out for extra income, or even sell it if you choose to. For those looking for a more comprehensive experience, searching for an Albanian house for sale might give you more options for long-term investment or relocation.

Buying property in Albania as a foreigner is an achievable process with the right preparation. Whether you’re looking for a vacation home, a rental property, or a long-term investment, Albania offers a wealth of opportunities for foreign buyers seeking affordable Albanian real estate.