Property Sale Overseas: Albania Property Buyers Guide
Procedure 1*.
The
seller obtains an ownership title certificate
Time to complete: 10 days
Cost to complete: 3,000ALL
Comment: The seller files with the relevant Real Estate Registry
Office the required documents in order to obtain within 48 hours an
updated certificate of title with a layout or a record file,
containing the property number, land registry area, name and surname
of co-owner(s), the description surface of the property in square
meters, the site and/or building(s) data, if any, and a specific
section certifying that the real estate property is or is not
subject to any dispute, lien, encumbrance, mortgage or any other real
rights .
Procedure 2*.
Verification of property certificate and relevant map at the Real
estate property Registry
Time to complete: 2 days
Cost to complete: 550ALL - Filing with the relevant Real Estate
Registry Office for the issuance of a un updated record file; 950ALL
- Filing with the relevant Real Estate Registry Office for the
issuance of an updated certificate of title with a layout.
Comment: The legal status of the real estate property is checked by
means of prior filing of an application by the seller with the
relevant Real Estate Registry Office for the issuance of un updated
certificate of title with a layout or an updated record file to be
submitted to the Notary Public. Such proceeding is mandatory to be
followed by the seller in case of execution of a sale and purchase
contract on the real estate property.
Procedure 3*.
Comparison of indicative property map with the real situation and
position of the land
Time to complete: 1 day
Cost to complete: from 50 up to 100 ALL per square meter of the land
Comment: Such proceeding aims at preventing any dispute arising out
overlapping, borders misfit and land surface. It is not mandatory,
but it is advisable to be followed in case of a high-priced
transaction. The verification should be done by a licensed
topographer with the own buyer's expenses.
Official fee to be paid is 40ALL per square meter, but in reality
the fee is between 50 - 100 ALL per square meter of land.
Procedure 4.
To
obtain a certificate from the local authorities certifying that the
seller is the sole owner and is allowed to sell the land
Time to complete: 5 days
Cost to complete: 10 ALL per square meter, applied only for lands.
Comment: Such proceeding is applied only for real estate properties
situated in peri-urban areas, as a result of some disputes arisen
out by and between the (co)owner(s) and expropriated (co)owner(s).
Such (co)owner(s enjoy their rights in compliance with the law no.
7501, dated on 19 July 1991, "On the land".
This law states the right on lands to the entire rural families
organized under agricultural families during the years 1950 - 1990,
ignoring the title of ownership of the expropriated owners. Thus, a
certificate issued by the responsible local authority is required.
Procedure 5.
Notarization of the sale and purchase contract by a Notary Public
Time to complete: 1 day
Cost to complete: The fees applied are calculated according to the
following schedule: Value of real estate property Notary fees From
100,000ALL up to 3,000,000 ALL 3,500 to 7,000 ( fee is estimated
proportionally) From 3,000,000ALL up to 4,000,000ALL from 7,000ALL
up to 8,500ALL From 4,000,000ALL up to 6,000,000ALL from 8,500ALL up
to 10,000ALL From 6,000,000ALL up to 8,000,000ALL from 10,000ALL up
to 15,000ALL From 8,000,000ALL up to 10,000,000ALL from 15,000ALL up
to 18,000ALL From 10,000,000ALL up to 15,000,000ALL from 18,000ALL
up to 23,000ALL From 15,000,000ALL up to 25,000,000ALL from
23,000ALL up to 30,000ALL From 25,000,000ALL up to 40,000,000ALL
from 30,000ALL up to 35,000ALL From 40,000,000ALL up to
50,000,000ALL from 35,000ALL up to 40,000ALL From 50,000,000ALL up
to 70,000,000ALL from 40,000ALL up to 50,000ALL From 70,000,000ALL
up to 100,000,000ALL from 50,000ALL up to 100.000ALL Over
100,000,000ALL Up to 150,000 ALL
Comment: The sale and purchase contract must be notarized before a
Notary Public. Such a contract must be drafted by a Notary Public,
lawyer, attorney at law, legal consultant or the parties themselves.
The Albanian law does not put any restrictions regarding this issue.
In case the sale and the purchase contract is not drafted by a
lawyer, the Notary Public is held responsible for the terms and
conditions provided therein.
Updated certificate of title of the property with a layout or an
updated record file issued by the relevant Real Estate Registry
Office is attached to and is an integral part of the sale and
purchase contract.
Procedure 6.
Payment
of income tax at a second-tier bank
Time to complete: 1 day
Cost to complete: 3% of property value
Comment: The seller is subject to the income tax due the transfer of
the title of ownership on the real estate property. Such tax is paid
at a second-tier in the territory of the Republic of Albania, with
whom the relevant Real Estate Registry Office maintains a banking
account. Exceptionally, 0, 5% of the transaction value is paid in
case of transfer of title of ownership of a farming land.
Accordingly, the taxpayer is provided by the Bank with the banking
certificate for payment of income tax.
The alienation of a real estate property from a legal entity to
another one is also subject to profit tax. Such tax has been reduced
from 23% to 20% of the transaction's value.
Procedure 7.
Application for the registration of the real estate property with
the relevant Real Estate Registry Office under the name of the buyer
Time to complete: 30 days
Cost to complete: 4,500ALL
Comment: The original version of the sale and purchase contract and
the banking certificate for payment of income tax are submitted to
the relevant Real Estate Registry Office for the registration of the
real estate property under the name of the buyer. Such proceeding is
handled by the buyer.
Tirana Real Estate Registry proceeds with the registration of the
real estate properties mainly by means of a computerized system.
