Renting out property in Albania can be a profitable way to generate income, especially in popular tourist and urban areas.
However, property owners—particularly foreign investors—must comply with legal requirements to avoid penalties and ensure valid rental agreements.
Albanian law regulates rental activities through tax obligations, property registration, and tenant protections.
Key Legal Requirements for Renting Property
1. Register as a taxpayer for rental income
Property owners earning rental income in Albania must register with the tax authorities as income earners. This applies whether you rent out short-term (holiday lets) or long-term.
Registration includes obtaining a Tax Identification Number (NIPT) if you don’t already have one.
2. Declare rental income and pay taxes
Rental income in Albania is subject to a flat 15% income tax on net rental income (gross income minus allowable expenses). Landlords must file periodic tax declarations and pay taxes on rental earnings.
Failing to declare rental income may result in fines or additional penalties.
3. Issue rental invoices and maintain records
Landlords are required to issue invoices for rental payments and maintain proper accounting records. For short-term rentals, especially to tourists, additional reporting obligations may apply.
4. Comply with local regulations for short-term rentals
If renting out property on a short-term basis (e.g., Airbnb, Booking.com), check whether municipal regulations require registration or specific permits for tourist accommodation.
Some municipalities may impose local taxes or reporting rules for tourist rentals.
5. Draft a written rental contract (for long-term rentals)
For long-term rentals, a written rental contract is strongly recommended to define rights and responsibilities of both landlord and tenant. The contract may be notarized for added legal enforceability but is not legally required for validity.
Tenant Rights and Landlord Obligations
Albanian law grants tenants certain protections, especially in long-term rental agreements. Landlords must respect notice periods, avoid unjustified evictions, and provide habitable conditions.
Any disputes between landlords and tenants fall under Albanian civil law and can be resolved through court proceedings if necessary.
Hiring a Property Manager
Foreign owners who are not based in Albania may choose to hire a property management company to handle rentals, maintenance, tenant screening, and compliance on their behalf.
This is especially useful for short-term rental operations or absentee landlords.
Renting out property in Albania legally involves tax registration, income declaration, and compliance with rental regulations. While the process is relatively straightforward, it is important to understand tax obligations and tenant rights to avoid legal complications.