Capital Gains Taxation in Albania
In Albania, capital gains are subject to taxation under the Law on Income Tax (Law No. 9914, dated 2008). The law defines capital gains as the profit realized from the sale or disposal of capital assets, including:
- Real estate properties
- Stocks and securities
- Bonds and debentures
- Business assets
The calculation of taxable capital gains involves determining the difference between the selling price of the asset and its acquisition cost. Expenses related to the sale, such as brokerage fees and legal fees, as well as any improvements made to the asset during ownership, can be deducted from the selling price to arrive at the taxable gain.
Albania's capital gains tax rates vary depending on the type of asset disposed of and the holding period. For individuals, capital gains from the sale of real estate are taxed at a flat rate of 15%, while capital gains from the sale of other assets are taxed at the progressive income tax rates ranging from 0% to 20%. For companies, capital gains are taxed at the corporate income tax rate of 15%.
The legal framework governing capital gains taxation in Albania aims to ensure that individuals and businesses contribute their fair share of tax on profits realized from investments and asset disposals. By applying varying tax rates based on the type of asset and holding period, the law seeks to balance revenue generation with investment incentives.
Relevant Legal Citations:
- Law on Income Tax (Law No. 9914, dated 2008)
- Article 2, Section 1: Definition of capital gains
- Article 10: Calculation of taxable capital gains
- Article 11: Tax rates applicable to capital gains
If delving into the depths of Albanian tax rules and regulations isn't your style, and you'd rather have experts take the reins, then Heavnn is here to help.
Let us simplify your tax planning journey. Access Heavnn's blend of professional expertise and cutting-edge technology by clicking the button below.
