Acquisition of property rights
Acquisition of the right of ownership of immovable property in Albania can be realized in several legal forms, in accordance with the provisions of the Civil Code or through special laws. In any case, the acquisition of property rights goes through two stages:
- Acquisition of property rights or limited rights over property, through an act of a public authority or through contracts.
- Completion of the transfer of the property right through the registration of the documents of the title of ownership in the Register of Immovable Properties
Sale and purchase of real estate
The contract of sale is one of the main ways of gaining ownership in Albania. The transfer of ownership over the immovable property and the real rights over them, must be done with a notary deed and registered.
- Sale and purchase of land
Albanian private natural and legal persons have the right to freely buy and sell land between them without any restrictions.
Foreign natural or legal persons who make or have made investments in the territory of the Republic of Albania, have the right to purchase land after having achieved the investment in accordance with the construction permit, up to a value of not less than three times the value of the land or who have purchased or constructed objects worth over three times the price of their land.
- Agricultural land, forests, meadows and pastures
Foreign natural and legal persons are not recognized the transfer of ownership of agricultural land, forests, meadows and pastures, but they enjoy the right to lease it for up to 99 years. Leasing is done according to the provisions of the Civil Code.
The above restrictions do not apply when a new Albanian company is created, even with 100% ownership by a foreign investor or through the purchase of shares in existing Albanian companies.
OWNERSHIP ON IMMOVABLE PROPERTY IN ALBANIA MAY BE STATE OR PRIVATE.
State assets can be offered to private businesses in the following three ways:
- Sale through privatization;
In the emphyteusis contract, the subject, in addition to gaining the right of use, must also improve the object of the contract. Also with emphyteusis can be leased only real estate while renting both real estate and movable.
State assets are leased or emphyteusis to third parties through the competition procedure, except for the specific cases defined according to which, state assets are given without competition.
For leased or emphyteusis facilities, with an area over 200 m2, the value of the monthly obligation is recalculated with a deduction, when the lessee / emphyteusis entity certifies through the approved accounting expert that it has made investments in the leased property / emphyteusis for improvement as well as for the purchase and installation of lines, machinery and equipment in the following values:
- investments over ALL 50 million, the discount is 10%;
- investments over ALL 80 million, the discount is 20%;
- investments over ALL 100 million, the discount is 30%;
- investments over ALL 150 million, the discount is 40%.
The reduction of the value of the monthly obligation from the realization of the investments is valid until the end of the contract term.
Contract with symbolic fee 1 Euro
State assets with an area of over 500 m2 can be given to third parties with lease / emphyteusis contracts for a symbolic price of 1 euro / contract by decision of the Council of Ministers, when the winning entity proposes to develop activities in the property acquired by an approved list of activities that are considered strategic for the development of the country.