Albania’s growing tourism industry is catching international attention, with foreign investors increasingly snatching up attractive properties along its glistening Mediterranean coast.

Real estate prices along the country’s glitziest locales have already gone up as more and more investors and tourists discover this formerly-forgotten Balkan gem. In nearby Dhërmi, for example, a nightly stay in the summer season can easily fetch €150 a night for a basic room that can sleep two adults.

The interest in upscale properties along the Albanian Riviera is only growing, with more and more high-income tourists visiting the country as its tourism scene gains steam. Folie Village, the country’s most exclusive real estate development, is leading the way with its Folie Marine 5-star hotel and private villas for sale. Owning a home in the beautiful Jalë bay here guarantees long-term rental income, made all the easier with our concierge management services that take care of managing your rental for you.

So it’s clear: the potential for short-term rentals in Albania has exploded as the country gears towards tourism. But as a foreign investor discovering the country for perhaps the first time, you may wonder: is it legal to rent out my property in Albania on AirBnB or Booking? Is it easy to rent out real estate in Albania as a foreigner? What are my options – after purchasing a coastal property along the Ionian – for renting out a beachfront villa to tourists?

In this guide, we’ll explain the ins and outs of renting out your property in Albania and why it’s such an attractive option for many foreign investors discovering Albania for the first time.

Is It Legal for Foreigners to Rent Out Property in Albania?

Absolutely, yes!

Foreigners and locals enjoy the same rights when it comes to renting out property in Albania. Whether you’re looking to rent out the unit for a short-term stay (like on AirBnB or Booking) or a long-term contract such as an annual rental agreement, the Albanian legal framework permits foreigners to rent out their properties just like Albanian citizens.

You can do this as an individual or through a locally-created company. Many opt to just rent out their properties directly in their own names to simplify the process. If you plan on owning multiple units, it may be beneficial to open a local business, as that’ll simplify the tax reporting, invoicing and compliance. 

Otherwise, the legal framework here is very welcoming towards foreigners – foreigners can rent out their properties easily in Albania. (If you’re curious about how easy it is to purchase property in Albania, check out our previous blog post about the topic.)

Short-Term vs. Long-Term Rentals in Albania

When renting out your property in Albania, it’s important to think about short-term vs long-term rentals. While both approaches can be profitable, they serve different goals and cater to the needs of different types of clients.

Generally, short-term rentals provide higher nightly rates and focus on tourists, digital nomads or seasonal travelers who are only staying for a short time. Especially in the peak summer season (May-September), your property, such as a beachfront villa in Folie Village next to Jalë Beach, will fetch premium prices and high demand. This also gives you the flexibility to enjoy the property when it’s not in use.

This strategy is popular in the Albanian Riviera, when the summer season sees a high influx of tourists. The only issue with this strategy is that it requires more management, entails higher wear and tear and will provide fluctuating revenue.

Long-term rentals, on the other hand, will target locals and expats who live in the country year-round. These contracts are generally more stable and provide regular revenue throughout the year at a lower per-night rate. You’ll experience less turnover this way and will need to be less hands-on with the property management, but will require signing a contract and won’t be able to use the property as you wish.

How Much Can You Earn from Rental Income in Albania?

Rental income potential in Albania varies widely depending on location, property quality, and target market – but in popular coastal cities like Vlorë, Saranda and Durrës, short-term rentals during the summer season can generate €80–€150 per night for standard apartments, and €200–€400+ per night for well-appointed villas.

However, properties within exclusive gated communities like Folie Village stand in a class of their own.

Thanks to its prime beachfront location, private security, resort-style amenities and carefully curated architecture, Folie Village caters specifically to luxury travelers – a fast-growing segment in Albanian tourism. As a result, owners here can charge significantly higher nightly rates, often €500 – €1,000 per night during peak season for large villas with sea views and premium finishes.

And our property management services make the process extremely easy – with an established presence at Folie Marine, our five-star hotel, we take care of check-in, cleaning and property management for you when you want to rent out your property in Albania.

Albanian Property Rental Compliance, Registration and Taxes

What about compliance and taxes in Albania?

Even as an individual investor, you’ll need to register as a provider of rental services with the Albanian tax authorities and obtain a Tax Identification Number (NIPT). Businesses need to register with the National Business Register (QKB), which handles both business and fiscal registration. 

You may also need to register with the local municipality – check in with local authorities or consult a legal professional. Some municipalities may charge a small tourist tax (typically between €1–€1.50 per person per night).

Taxes are relatively straightforward, though it’s always advisable to consult an accountant. Property owners must declare earnings and pay income tax, which is a flat 15% on gross earnings minus deductible expenses. You must also issue invoices and maintain records for local tax authorities as proof of income and expenses. 

Double-taxation treaties between Albania and multiple Western European countries do exist, helping prevent foreign investors from being taxed twice on the same rental income. If you reside in a country that has such a treaty with Albania – such as Germany, Italy, or the UK – you may be eligible to offset or avoid double taxation through proper reporting and documentation.

For high-value properties in exclusive communities like Folie Village, working with a local tax advisor or property manager is highly recommended to ensure full compliance and maximize returns.

Folie Village: The Smart Choice for High-End Rental Returns in Albania

Albania is one of the few remaining destinations in Europe where rental ROI is still strong and shows plenty of potential growth in the coming years. With so many new visitors discovering this country every year and international interest in the Albanian Riviera growing at a dizzying pace, investing in a premium rental property now means getting in ahead of the curve.

For those seeking both steady rental income and an elegant residence along the sea, Folie Village offers a rare combination of exclusivity, beachfront access and high nightly rates from luxury travelers. Whether you’re a first-time buyer or seasoned investor, now is the time to secure your place in Albania’s most desirable gated community – get in touch, today!