Albania Tax Free Real Estate Donation to Family Members

On 18.12.2019 the Parliament adopted the Law 84/2019 “For some additions and amendments to Law 8438, dated 28.12.1998 “On Income Tax”. The new amendment, provides that the transfer of property rights to family members under a Donation/Gift Contract will be considered as tax-free transaction. As of January 2020, the 15 % tax exemption on property transfer will be applied only in cases when a property is donated between the family line: husband, wife, children’s and only once to one beneficiary.
Published in the official gazette no. 184 dated December 31st 2019 “Mandatory Classification of Tourist Facilities”
On 24.07.2019 The Ministry of Tourism and Environment adopted the ordinance no 267 “On the approval of the regulation on the way, criteria, and the procedure for the categorization of accommodation facilities”.
The Ordinance no. 267 provides obligatory classification for accommodation facilities such as: guesthouses, hostels, campsites, hotels, motels, resorts, curative stay, and Bed & Breakfast facilities.
Under the provisions of the above mentioned Ordinance, any owner or administrator of accommodation facilities must apply for Classification Certificate and any NEW accommodation facility that will operate in the hospitality sector in Albania, shall apply for the Classification Certificate within 30 days from the registration of its activity with National Business Center in Albania.
Before applying the classification certificate, the accommodation facilities must check if they comply with the defined criteria’s set forth for each category in the provisions of Ordinance 267.
Published in the official gazette no. 154 dated 15.11.2019 and came into force immediately after publication

When purchasing an Immovable Property, Decennial Liability Insurance Mandatory by Law “
On 2/10/2019 the Council of Ministers adopted the Decision No. 650 for the “Construction Insurance”, which came into force immediately after publication in the Official Gazette.
According to this decision, the Constructor, Developer or Investor shall provide to the Buyer in the quality of beneficiary, a decennial liability insurance along with the Immovable Property Sale Purchase Agreement, which enters into force with the completion of the construction works. Such Insurance,  is a building defect insurance, imposed upon the constructor, developer or investor, which makes them liable to cover costs for the partial or total collapse of the building or due to land or building defects or poses collapse risks any defect that affects the stability and safety of the building.
According to DCM 650, the liability insurance limit cannot be lower than the total sale purchase price determined in the Immovable Property Sale Purchase Contract. Meanwhile, the yearly insurance premium cannot be less than 0.1 percent of the liability limit set in the insurance contract.
Published in the Official Gazette No. 137, dated October 7th 2019

Hoxholli, O. 2020, Albania Tax Free Real Estate Donation to Family Members, LPA LEGAL ALBANIA , Albania.


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