Albania is no longer a well-kept secret: luxury real estate investors from all over Europe and the United States have discovered this Balkan gem as a top luxury real estate investment destination, and with good reason!

With gorgeous coastlines, historical towns and ever-improving infrastructure and access to the rest of the continent, Albania’s tourism scene is booming, drawing in visitors from all around the world.

The charm of the country is indisputable. Friendly locals, attractive prices and unique vistas are leaving a lasting impression on visitors and investors alike, making the country a valuable player in the luxury real estate market.

And the legal and regulatory framework in Albania has been revamped in recent years, making it an attractive investment destination for those seeking a developing market that hasn’t yet reached maturity. For high-net-worth investors, this combination of beauty, opportunity and profitability makes Albania a standout choice.

In 2025, the Albanian government is further streamlining the real estate investment process, offering tax incentives that rival or even surpass those in well-known luxury destinations. Whether your goal is to own a vacation home, generate rental income or build long-term equity, these tax benefits make it easier than ever to turn your vision into reality.

In this blog post, we’ll outline the 2025 Albania tax benefits for luxury real estate investors looking to buy property in Albania.

How Albania is Competing with the Best Luxury Villas in Europe

When thinking about luxury villas in Europe, many investors think of Amalfi Coast or the French Riviera. While these destinations are indisputably gorgeous and elegant locales, properties there now have premium baked into their price tags that elongates the payback period. 

Albania, by contrast, is still in its early days of luxury real estate development and tourism. Properties along the Albanian Riviera sport stunning views and beaches that rival those found in Italy and Greece, but at a fraction of the cost. And infrastructure upgrades – including new highways and airport expansions – are making Albania more accessible than ever.

But what truly sets Albania apart in 2025 is its tax regime. Competitive acquisition costs, paired with lower property-related taxes, mean investors can allocate more of their budget toward the property itself, maximizing both lifestyle enjoyment and potential returns.

2025 Tax Benefits for Real Estate Investors in Albania

Albania’s 2025 tax policy is designed to attract foreign capital while encouraging property development. Here are the key benefits for investors this year:

• Low Property Transfer Tax – Unlike many European countries that charge up to 10% of a property’s value at purchase, Albania’s rates are significantly lower, helping investors save tens of thousands at the outset.
• Reduced Annual Property Tax – Luxury property owners pay a fraction of the recurring costs seen in countries like France or Spain.
• Favorable Capital Gains Treatment – Profits from the sale of real estate are taxed at competitive rates, with exemptions in certain cases for long-term ownership or reinvestment into local projects.
• Investor-Friendly Rental Income Tax – For those renting their villas, Albania’s rental income taxation remains one of the most appealing in the region, especially for short-term vacation rentals.
  

These incentives apply to both Albanian citizens and foreign investors. The combination of lower upfront costs, manageable annual expenses and investor-friendly profit structures makes Albania one of the most cost-effective entry points into European luxury real estate.

Why Now is the Time to Buy Luxury Villas in Albania

The market for luxury villas in Albania is heating up. Over the last five years, coastal towns like Jalë, Saranda and Dhërmi have seen significant growth in both property prices and rental demand. This trend shows no signs of slowing down in 2025, driven by increased tourism, international exposure and continued infrastructure development.

Buying a luxury villa in Albania now means locking in a property at a lower price point while still benefiting from the strong potential for appreciation. At Folie Village, we are proud to offer the country’s most high-end turnkey villas featuring infinity pools, private access to the iconic Jalë Beach and a gated community that matches the luxury investor’s elegant lifestyle.

With tourism numbers breaking records each year, short-term rental income potential is only growing, helping offset property ownership costs. In addition, the government’s continued efforts to simplify the legal process for foreign buyers remove barriers that once deterred international investors.

Albania: The Smart Move for European Luxury Real Estate

Albania’s 2025 tax benefits give investors a unique opportunity to secure luxury property in a country on the rise. With competitive acquisition costs, low ongoing taxes and strong appreciation potential, the financial case is clear. Combine that with pristine natural beauty, rich culture and growing tourism, and you have a recipe for both personal enjoyment and lasting wealth.

For those ready to explore the market, now is the time to act – get in touch with Folie Village today to discover your next home in the Albanian Riviera. The most desirable villas won’t stay available for long – and the sooner you buy, the sooner you can enjoy both the lifestyle and the financial rewards of owning luxury real estate in Albania.