Can foreigners get a mortgage in Albania?

Foreign buyers exploring Albania’s property market often wonder whether they can access local financing to purchase real estate. While mortgages are available in Albania, obtaining a loan as a foreigner can be challenging under current banking practices.

Mortgage Availability for Foreign Buyers

Albanian banks primarily issue mortgages to Albanian citizens or permanent residents with stable income in Albania.

Most banks require applicants to have:

• Proof of long-term residence in Albania

• Stable employment or income documented within Albania

• A valid Tax Identification Number (NIPT or TIN)

For non-residents or foreigners without ties to Albania, mortgages are generally not offered by Albanian banks. The domestic lending market is focused on local borrowers, and foreign income or foreign credit histories are typically not considered in lending decisions.

Alternatives to Local Mortgages

Since direct mortgage financing from Albanian banks is limited for foreign nationals, buyers may explore alternative options:

International financing from a home-country bank
Some buyers secure financing from banks in their home country and use the funds for an international property purchase. This option depends on the buyer’s creditworthiness and financial profile.

Cash purchases
Many foreign buyers in Albania purchase properties without financing, using savings or funds transferred from abroad.

Private lending or seller financing
In rare cases, private agreements with property developers or sellers may offer installment payment plans or vendor financing options. These arrangements should be carefully reviewed by a legal advisor.

Why Mortgages Are Limited for Foreigners

Albania’s banking regulations, limited mortgage insurance options, and the local risk assessment framework contribute to the cautious approach banks take toward lending to foreign nationals.

Lenders prioritize borrowers with documented ties to Albania, including income verification within the country and property guarantees.

Currently, most foreigners buying property in Albania purchase without a local mortgage, relying on cash or international financing sources. Buyers interested in long-term residence or establishing local income may improve their eligibility for financing over time.