Albanian tax legislation governs the taxation framework concerning inheritances, gifts, and gambling profits, including regulations applicable to both residents and non-residents. This article aims to provide information about inheritance, estate, and gift tax in Albania.

The application of Inheritance, Estate and Gift Tax in Albania

The Republic of Albania imposes taxes on its residents who receive gifts, inheritances of assets from within or outside Albania, or profits from gambling within or outside the country. Non-residents in Albania are also taxed if they receive gifts or inheritances from within Albania or if they earn profits from gambling within the country.

Albanian law defines gifts as movable or immovable property, or money received without any payment in return; while as inheritance is defined as movable or immovable property or money received through the transfer of assets from a deceased person to their heirs, excluding any debts. Assets from gifts and inheritances are valued at their nominal value or market value, whichever is greater.

Estate taxes in Albania are applied to immovable property. Before the registration of such property, individuals transferring or donating ownership must pay these taxes in accordance with relevant laws. These taxes are treated as income and are levied at a flat rate of 15%.

Tax Rates and Exemptions

Exemptions:

• Donations and inheritance received from or between first and second-degree legal heirs, as well as donations and inheritance within sibling relationships.
• Donations and inheritances up to 5,000,000 ALL per taxpayer for immovable assets and up to 1,000,000 ALL for movable assets per taxpayer.
• The transfer of ownership rights to legal heirs through donation or relinquishment of property when the property derives from co-ownership.

Tax Rates:

The tax rate for inheritances, gifts, and gambling income is 15%, without deducting any costs.

To read more about taxation in Albania, click here.

The law on personal income tax in Albania ensures that the tax system is fair and consistent, maintaining clarity and compliance for all subjects involved. For more information on personal income tax and other tax categories applied in Albania, click here to visit the official page of the Albanian Tax Authority.

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