If you rent out a flat in your own name in Albania, you pay 15% of the rent in tax. Property costs are not deducted. Who pays depends on the tenant: a business withholds it for you every month, while with a private tenant you declare it yourself in March. For Airbnb and Booking, the tax office has started checks, but the rule for flats owned by individuals is not yet clear. Here is what is certain and what is not.
Work out the tax on your rent
Pick who rents it, enter the monthly rent and the months. The prefilled figures are this article's example.
How much tax on your rent?
For property you own as an individual.
- Annual rent
- 480,000 ALL
- Tax at 15%
- 72,000 ALL
- You keep
- 408,000 ALL
A private tenant does not withhold tax. As the rent passes ALL 50,000 a year, you declare and pay it yourself in the annual DIVA return, by 31 March of the following year.
For property you own as an individual. Property costs are not deducted. If the property is part of your business, the rent is business income and taxed differently.
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Official source: Albanian tax authority, taxable income of individualsWhy 15%, and why no costs
Law no. 29/2023 on income tax treats rent from real estate as "investment income" and taxes it at 15%. No costs are deducted from investment income. So the tax is on all the rent you receive, not on the profit after expenses.
Illustrative example: a two-bedroom flat is let at ALL 40,000 a month for 12 months. The annual rent is ALL 480,000 and the tax ALL 72,000 (15%). You keep ALL 408,000.
The ministry's instruction gives an example: an employee with ALL 240,000 a year in rent from an individual pays ALL 36,000 in rent tax through DIVA. Any tax overpaid through salary is set against the rent tax.
Airbnb and Booking: what is known and what is not
Care is needed here, because confident answers without sources circulate online. This is what the official documents we read say:
Rent from property outside Albania
If you are tax resident in Albania and let property abroad, the rent is declared here in DIVA as well. Tax paid abroad is credited, but only up to 15%. The instruction's example: EUR 12,000 of rent in Bari, EUR 2,400 of tax in Italy. In Albania EUR 1,800 is credited, equal to 15% of the rent, and nothing more is due here.
How Pivot helps
We tell you how much tax each lease carries and who must pay it. We prepare your DIVA return with the rent and any foreign tax credit. For Airbnb flats, we look at your case and tell you whether you need to register as a business, before the season starts.
Ask us to prepare your annual return. Related: DIVA documents by tax year.
Official sources and period
Sources: Law no. 29/2023 on income tax, as amended, articles 15, 24, 58, 59 and 61; Instruction no. 26 of 8.9.2023, points 4.5, 25, 58.4 and 67; Decision of the Council of Ministers no. 160 of 12.3.2025; Law no. 79/2025, article 6. Checked on 28 October 2026. The flat example is illustrative; the other examples come from the instruction.
