Parties draft contract, validate title, refresh property card and obtain cadastral map
Agency : Public Notary’s Office
Seller and Buyer appear before the notary public to draft the contract for the transfer of property, have the certificate of title verified, refresh the property card and obtain a copy of the cadastral map.
- Verification of the certificate of title. The Seller brings the certificate of title to the public notary for verification. Public notaries have access to the records of the IPRO database and thus can verify the validity of the certificate of title.
- Refreshing the Property Card and obtaining the cadastral map: This can be done either by seller going in person to the IPRO or by the public notaries, and is necessary to check for any encumbrances on the property. Notary sends a request to the IPRO, to obtain an updated property extract. When the IPRO replies confirming the updated info on the property and provides an updated property card, the public notary alerts the parties that documents are ready. The property card is valid for 48 hours.
Time and cost: 8 days, ALL 4,850; (The total fee applicable for this procedure, according to the Instruction no. 5341/5, dated 09.07.2012 “On approval of the Real Estate Registration Offices services` fees” of the Ministry of Justice and Ministry of Finance and Order no. 995, dated 31.10.2014 of the Chief Registrar would be:
- 1500 ALL for certificate/attestation;
- 1000 ALL copy of the property records;
- 1000 ALL copy of the registration map fragment;
- 150 ALL mailing service;
- 200 ALL Bank commission;
- 100 ALL Service fee for obtaining the ownership certificate;
- 50 ALL service fee for the copy of the map and all property records.
- Total: 4,000 ALL.
Cadastral Map Fees:
- 700 ALL tariff
- 50 ALL service fee
- 100 ALL bank commission
- Total for map: 850 ALL
Comparison of property map with the real situation and position of the land
Agency : Private authorized expert (topographer)
While this procedure is not mandatory by law, it is done in practice by the buyer to avoid any dispute with third parties caused by border issues and/or land surface.
Verification is performed by a private authorized expert (topographer). The cost can be agreed upon by the buyer and seller upon which party will cover this expense. The law does not regulate the topographer fees and it is estimated between 15000 ALL – 20 000 ALL.
Time and cost: 2 days, ALL 17,500; (Estimated between 15,000 ALL – 20,000 ALL)
Notarization of sale and purchase contract by the notary public
Agency : Notary Office
In order to execute the sale-purchase contract and get it notarized, the seller submits to the notary public:
- Ownership Certificate or the Ownership Attestation;
- The updated Property Records
- Property Map
Order Nr. 279, dated 14.6.2012, “For the approval of tariffs for notary services”, repealed Minister of Justice’s Decree Nr. 96/1, dated 23.1.2001, and went into effect on 20.6.2012.
Time and cost: 1 day, ALL 79,462.5 (Pursuant to the Order Nr. 279, dated 14.6.2012, “For the approval of tariffs for notary services”, effective on 20.6.2012, the notary fees are calculated as follows:
For the property with the transaction value of … the respective notary tariff is:
- for 100.000 – 6.000.000 ALL the tariff is 0.35%;
- for 6.000.001 – 15.000.000 ALL the tariff is 0.3%;
- for 15.000.001 – 50.000.000 ALL the tariff is 0.28%;
- for 50.000.001 – 100.000.000 ALL the tariff is 0.25%;
- for above 100.000.001 ALL the tariff is 0.23 %.)
Payment of taxes (local and income tax) at a second-tier bank
Agency : Second-tier bank
Under the law no.9632, dated 30.10 2006 “On local taxes”, as amended, in case of transfer of ownership over a commercial area located in Tirana is applicable a tax rate of 2000 ALL per square meter. Whereas the tax rate for transfer of the ownership over the land is 2% of the sale price.
Additionally, under the Law No. 156/2014 “On certain amendments to law no. 8438”, Dated 28.12.1998, The section “Income tax” was amended in the article 3 specify that the transfer of the right of ownership on real estate, building land, are taxed at 15 percent of the profit.
On transactions with immovable property the VAT tax is not applied. Both, fee and tax are payable at any second-tier bank located in Albania.
Time and cost: 1 day, ALL 2,425,589.27; (Local Tax for Tirana municipality: 2000ALL per square meter
Income tax for a company: 15% as income tax (not included in calculation), Transfer tax: 2%)
Registration at the Real Estate Registry Office
Agency : Immovable Property Registration Office Tirana (in transition to National Cadastre Agency)
Pursuant to Law No. 10491, Date 01.03.2012, the notary public registers the transferred property at the Immovable Properties Registration Office.
The buyer files the original copy of the contract signed by both parties, accompanied by the
- Original copy of the Ownership Certificate or the Ownership Attestation;
- The updated Property Records issued no later than 72 hours before the contract is signed;
- Property Map, and;
- The receipt of the payment of the fee for transferring the ownership title.”
Time and cost: 7 days, ALL 7,350 (According to the INSTRUCTION No. 5341/5, dated 09.07.2012)
- 3,500 ALL registration fee;
- 1,500 ALL for the Ownership certificate;
- 1,000 ALL for the property records;
- 1,000 ALL for the map;
- 150 ALL for the mailing service;
- 200 ALL Bank commission.
