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Citizens' income from rents reached 350 million euros in 2024

2025-03-19 07:27:00, Ekonomi CNA

The rental market is "exploding" from the influx of foreign tourists, but official rental income is growing at normal rates.

According to official data from the General Directorate of Taxes, Personal Income Tax (PIT) revenues reached 5.3 billion lek last year, increasing by 10.3% compared to 2023.

TAP is levied on the gross amount of payment for income from the rental of real estate, where a 15% withholding tax is applied. Based on the TAP law, the lessee deducts the tax amount from the monthly rent and passes it on to the competent tax authorities.

The amount of TAP's revenue of 5.3 billion lek is 15% of the value of 35.6 billion lek. According to the data comparison, the leasing market had an official value of 350 million euros across the country, up from about 320 million euros in 2023.

Developments in the real rental market have been more rapid during 2024. The housing stock has increased and so has the value of the rent, especially in Tirana and in cities with developed tourism.

Data from Air DNA, the analytics unit of the rental platform Air BNB, made available to Monitor shows that in 2024, around 21,000 apartments were available for rent. These units generated a value of 85 million euros, almost twice as high as in 2023.

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High tourist demand for daily rentals has created a cascading effect, driving up long-term rental prices. From September to December 2024, rental prices increased by up to 20% in Tirana.

Prices in the main areas of Tirana range from 500 to 800 euros for 1+1 apartments.

For 2+1 apartments, prices range from 800 to 2,500 euros. While for larger apartments, the rent is over 2,500 euros per month.

In the suburban areas of the capital, which are known for their quality stock, these prices can range from 4,000 to 10,000 euros per month for quality residential units, such as villas with large recreational areas and surrounding green spaces, according to data from "Colliers Albania".

Given these developments, the government and the Ministry of Finance have previously expressed concern about the high level of informality in this market. For tax purposes, official rents, especially long-term ones, are declared lower than the real market value, causing the state to not receive the tax it is due.

The housing rental market in Albania has undergone significant changes in recent years, especially in urban areas such as Tirana. The growth of the urban population, migration from rural areas and the increased demand for housing have contributed to the increase in rental prices./ Monitor Magazine