Investing in real estate can be an exciting venture, but understanding the laws governing this process is crucial, especially when purchasing property in a foreign country. If you are considering buying property in Albania—be it an apartment, a seaside villa, or a countryside estate—it is essential to be aware of the legal procedures in place. This article provides an overview of the legal framework to ensure a smooth property purchase in Albania.

Constitutional Right

Property rights are considered one of the fundamental human rights and are extensively regulated within Albania’s legal system. According to the Constitution of the Republic of Albania, property rights are guaranteed, offering protection for all aspects of property ownership.

Who Can Buy Property in Albania?

Any individual with the legal capacity to act can purchase real estate in Albania, regardless of nationality. Additionally, foreign investments are treated the same as domestic investments, ensuring equal and impartial treatment, full protection, and security. The only exception is for agricultural land, which foreigners can lease for a maximum of 99 years.

Contract Forms

Legal transactions involving the transfer of ownership of real estate and related rights must follow a specific legal format known as formal legal transactions (ad solemnitatem). According to the Civil Code, these transactions must be conducted through a notarial act; failure to comply renders the transaction null and void. Furthermore, transactions related to Albania property for sale are consensual acts that acquire full legal effect once the contracting parties reach an agreement.

Registration

All legal transactions that alter the status of real estate—such as sales, mortgages, inheritances, usufructs, easements, and other actions defined in the Civil Code—must be registered with the real estate registry at the State Cadaster Agency, within the respective Local Directorate. Registering the legal transaction in the property registry is crucial to inform third parties about the property’s status.

Taxes and Fees

When purchasing real estate in Albania, it is important to consider the applicable taxes and fees. These include notary fees for every legal transaction executed before a notary and property registration fees at the Cadaster Agency (ASHK). Additionally, be aware of annual property taxes, which vary depending on the property’s location and value.

Understanding the Market

Albania’s real estate market is growing but still developing. The value of real estate is influenced by both the type and location of the property.

Protecting Your Investment

Under current legal provisions, the Developer or Builder of real estate is required to ensure the property for 10 years from the completion date of construction. This insurance policy covers structural damages to the building, including damages to third parties resulting from land issues or construction defects, especially in cases where the building collapses, either completely or partially, or presents visible risks of collapse or other serious defects. After this period, it is crucial to continue protecting your investment by maintaining property insurance and performing regular property maintenance, which is key to preserving the value and condition of your new home.

Purchasing property in Albania can be a great investment. Understanding the legal aspects of buying real estate is essential for ensuring a smooth transaction. By collaborating with experienced professionals in real estate mediation, you can confidently embark on the purchasing process and secure the property you have dreamed of in Albania.