It’s a question I hear almost every week.
Usually over coffee. Sometimes while standing on a balcony looking at the Ionian Sea.
“Is Albania actually tax-friendly, or is that just something people say online?”
The honest answer is… it depends on what you’re comparing it to. But after living and working in Saranda for years, watching investors arrive from Italy, Germany, Scandinavia, and lately even further away, I can say this with confidence — Albania feels simple. And simplicity, especially in real estate, often translates into opportunity.
Let me explain.
Why This Question Comes Up So Often
Most people don’t start by asking about taxes. They come for the coastline.
They see the Albanian Riviera on social media, spend a summer here, and somewhere between a swim in Ksamil and a sunset dinner above the bay, the idea appears: what if we owned something here?
I remember showing a couple from Belgium an apartment not long ago. We finished the viewing, sat down for espresso nearby — as we always do here — and suddenly the conversation shifted from views and finishes to numbers. Taxes. Rental income. Long-term costs.
That moment happens often. Because once people realize how affordable properties still are compared to the rest of the Mediterranean, the next logical question is whether the financial side makes sense too.
The Albanian Approach to Property and Taxes
Albania isn’t complicated when it comes to property ownership. And honestly, that’s part of the appeal.
There isn’t the same level of layered taxation you see in some Western countries. Buyers are often surprised by how straightforward the process feels. Especially when purchasing new constructions, where certain costs that exist elsewhere simply don’t apply in the same way.
I won’t turn this into a legal explanation — that’s not how real conversations happen here anyway. What matters more is the experience investors have once they own something.
Low ongoing costs. Manageable maintenance. And a system that, while still developing, doesn’t feel designed to punish ownership.
That’s one of the reasons why demand for Saranda apartments for sale has grown steadily in recent years. Not just because of tourism, but because ownership remains relatively accessible.
Affordable Properties Still Exist — For Now
I say this often, maybe too often, but I truly believe Saranda offers the best value on the entire Mediterranean coast.
You can still find seaview apartments at prices that would be impossible just a few hours away in Greece or Italy. And when property prices are lower to begin with, taxes naturally feel lighter too. The overall investment equation simply works better.
A good example is something like this 1-bedroom apartment in Ksamil. It’s a new 2025 building, finished recently, in one of those quieter neighborhoods just outside the busy summer streets. Private swimming pool for residents, about seven minutes walking to the beach. Nothing exaggerated. Just clean design and calm surroundings.
For many buyers, the appeal isn’t only lifestyle — it’s the realization that owning here doesn’t come with heavy yearly pressure.
A Small Tangent — Because It Matters
Sometimes people think taxes alone define whether a country is investment-friendly. I don’t fully agree.
I’ve seen investors pay higher taxes elsewhere but still struggle because maintenance costs, bureaucracy, or rental restrictions made ownership stressful. Here, things move differently. More personal.
You’ll notice it quickly. The neighbor who helps you find a local electrician. The café owner who keeps your keys during winter without asking for anything. It sounds small, but these details reduce costs in ways spreadsheets never show.
Anyway — back to taxes.
Rental Income and the Reality on the Ground
Short-term rentals are one of the main reasons foreign buyers look at Albania today. Tourism has grown fast, especially along the Albanian Riviera, and properties close to the sea naturally benefit from that.
I’ve seen investors buy apartments initially as holiday homes, only to realize later that rental income covers most of their annual expenses.
Properties like this seaview apartment on Skënderbeu Street show why. Quiet area, new residence, private pool, fully open sea views without obstruction. It works equally well for living year-round or renting during the season. And because operating costs remain relatively low, the returns feel stronger compared to many European cities.
Luxury, Privacy, and a Different Kind of Investment
Another shift I’ve noticed recently is the demand for privacy. Not everyone wants to be in the center anymore.
Some families prefer villas slightly outside the busy areas — more space, more calm. A place where you hear cicadas at night instead of traffic.
Developments like this private villa in the Surra area of Saranda reflect that change. Spacious layout, private pool, quiet surroundings. These types of properties attract buyers who aren’t just thinking about tax efficiency but about long-term lifestyle value. And often, those two things end up connected.
Ksamil and the New Investor Profile
Ksamil has changed a lot in the last few years. Social media played a role, of course, but so did better construction standards.
Buyers today are more informed. They look at quality, privacy, and potential returns together. That’s why newer developments — like these luxury duplexes in Ksamil — attract attention. Two private pools, underground parking, only a few hundred meters from the beach and center, but still secure and quiet. For investors, projected returns around 16% annually are not unrealistic when managed properly.
And again, when taxes and ongoing costs remain reasonable, those returns actually stay in your pocket.
Land, Business, and Long-Term Thinking
Some investors think beyond apartments. They look at land.
Along the coast, especially in places like Porto Palermo or Borsh, there are still opportunities to build boutique hotels or private villas. I recently walked a client through a first-line seaview land in Porto Palermo, literally steps from the water. Ten meters from the beach. No second row. The kind of location that becomes impossible to find once development accelerates.
Borsh is similar, just quieter. Land there still feels connected to nature. If someone wants to build slowly and think long-term, it makes sense.
Even commercial spaces are becoming interesting again. A first-line commercial shop near the beach in Saranda, for example, works because tourism keeps growing year after year. Business and real estate here move together.
The Cultural Side Nobody Calculates
In Albania, property ownership still carries emotional value. Families gather, meals last longer than planned, neighbors talk across balconies.
It’s not unusual for a client to come for investment reasons and end up spending half their summer here instead.
I’ve had meetings that turned into long lunches with fresh fish and raki, discussing life more than numbers. That’s part of the culture. And strangely, it makes investment decisions easier. People feel connected to the place.
So… Is Albania Tax-Friendly?
In my experience — yes. But not only because of tax rates.
It’s tax-friendly because entry prices are still reasonable. Because ownership costs remain manageable. Because bureaucracy, while imperfect, is still less restrictive than in many Mediterranean countries.
And because the market is still growing.
Taxes matter. Of course they do. But what really matters is the overall balance between cost, income potential, and lifestyle. And right now, South Albania offers a balance that’s becoming harder to find elsewhere.
Final Thoughts
Sometimes in the evening, when the promenade quiets down and the cruise ships leave, Saranda feels like it did years ago. Calm. Authentic. Still discovering itself.
I think that’s why investors feel comfortable here. They sense that the story isn’t finished yet.
If you’re looking at affordable properties, beachfront property, or simply trying to understand whether Albania makes financial sense long-term, the best thing you can do is come and see it yourself. Walk the streets. Talk to locals. Sit down for coffee without rushing.
The numbers will make more sense after that.
