How much tax on rents do Albanians pay? - In 2025, 4 million euros more than in 2024. Impact, AirBNB and Booking
Albanians paid more tax on rentals during 2025, including long-term and daily rentals for apartments rented through AirBnB or Booking platforms.
Official data from the General Directorate of Taxes shows that the tax collected from rents in 2025 is 5.8 billion lek or 58 million euros, while in 2024 it was 53 million euros. The increase is recorded at around 4 million euros or 8.5%. While in relation to 2023, the overshoot is around 10 million euros.
The increase in the number of tourists from year to year has led to more properties being put on the market by citizens, being rented out for short-term. Also, the prices of long-term monthly rentals have increased significantly during the past year, especially in the capital, bringing more benefits to citizens but also to the state budget.
During 2025, anti-informality reform was also undertaken in the accommodation sector, especially focused on short-term rentals with AirBnB and Booking, which seems to have had an impact.
This reform is continuing this year, where citizens and businesses have been asked to declare their income through DIVA 2025, otherwise they will be penalized.
The growth is significant, despite the fact that the rental market has problems with informality and not everyone declares it.
But what is the tax rate paid on rent? According to the current law "on income tax", income from real estate rentals is treated as income from investments and the tax applied at source is 15 percent of the monthly rent value. So if the rent is worth 50 thousand lek per month, the tax that must be paid is 7500 lek per month.
In the case where an individual has leased property to a registered entity, the latter is responsible for withholding, declaring, and paying the withholding tax on behalf of the tax authority.
When the tenant is an unregistered person, as in the case of domestic or foreign tourists, the individual landlord as the beneficiary of the income is obliged to declare and pay the withholding tax to the tax authority no later than the 20th of the month following the month in which the payment was made. While for short-term rentals, the declaration is made through DIVA and on the income, the tax is applied at the rate of 15%.
The Albanian tax administration has started a collaboration with the Irish tax administration to investigate individuals who benefit from income from the Booking and AirBnB platforms and do not declare them. A few days ago, it sent a notice to individuals who benefit from income from AirBnB, asking them to make the relevant declarations through DIVA.
Data from the short-term rental accommodation market shows that there are currently over 18,000 active short-term rental units on various booking platforms.
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