Property rental is a growing market in our country, as many people are rushing to leave their homes for days, or for longer periods.
Official data from the Ministry of Finance shows that TAP's revenue from rental income reached 5.8 billion lek in 2025 from 5.3 billion lek in 2024, an increase of 8.5%.
In parallel with the value of tax collected, the official value of taxed rents has also marked the same upward trend.
The value base on which this tax is calculated was 38.6 billion lek in 2025, with an expansion of over 3 billion lek within a year, compared to the value of 35.6 billion lek in 2024. This increase indicates not only the expansion of the number of contracts declared, but also a reflection of the increase in rental prices in the domestic market and the increase in the value of references.
The rental tax is a withholding tax of 15%. The process varies depending on the status of the parties involved. In the case where an individual rents to a business, the lessee has a legal obligation to withhold 15% of the gross rental value and pay it to the Tax Office by the 20th of the following month.
Whereas in the case where an individual rents a property to another individual, the property owner (the landlord) must declare the income and pay a 15% tax. Often this process involves registering the lease contract with a notary and then with the Cadastre or Tax offices.
Taxes apply reference prices per square meter for the rental tax. Given that apartment prices, especially in Tirana and the coast, have increased significantly, many individuals find it impossible to buy and resort to renting, increasing demand and consequently prices.
A large portion of the housing stock has shifted from long-term rentals to short-term rentals for tourists.
According to previous data from AirDNA , the analytical unit of the rental platform Airbnb and Expedia (and in some cases Booking.com), across the country, on average, in 2025, 26.3 thousand apartments were rented through the rental platform, Airbnb, up from 21 thousand the previous year, with an increase of 25.3%. This figure represents almost 3% of the total housing units in the country (about 1.08 million) according to INSTAT, or 6.1% of apartments in buildings (432 thousand).
The number of those who have chosen to let their homes available to strangers for days has increased significantly. In January 2021, when the earliest data available from AirDNA is, about 6.2 thousand apartments or other residential units were rented through Airbnb, or 4 times less than today.
According to data from AirDNA and Expedia, in 2025, a total of 134 million euros were generated from these measured apartments alone, a record level ever recorded in the country. Compared to the previous year, revenues have increased by 23.4%.
The rush of many individuals to rent out their homes on a daily basis has resulted in fewer apartments and houses on the market that are available for long-term rental, especially in the capital and coastal areas (generally in the summer). This has led to higher monthly payments , especially in the capital.
The growth has been so strong that in December it affected almost half of the inflation (0.96 percentage points out of the 2.2% that the Consumer Price Index resulted in in the last month of the year). The cheapest rent you can find in the capital today is 250 – 300 euros in the suburban areas, while near and in the center, prices range from 500 – 1000 euros per month. For villas, the costs reach 300 – 5000 euros per month.
Also, the continuous migration of the population towards Tirana for employment and education keeps demand at maximum levels, despite new construction.
For the state budget and landlords, rising rents mean more income, but for tenants, young people and young families, it translates into an increased cost that often exceeds wage increases, making renting unaffordable./Monitor
