Albanian government revises social housing tax regulations

The government has revised the draft law ‘On Social Housing,’ introducing new regulations for the private construction sector. Under the updated proposal, developers applying for building permits for residential projects with a functional area exceeding 2,000 square meters will be required to pay the 3% housing tax exclusively in monetary value.

This new mechanism replaces previous options where developers could fulfill their obligation by transferring 3% of the functional housing area to the state. The proposed contribution will be equivalent to the market value of 3% of the functional area and will be paid into the Public Social Housing Fund (FSKS).

The draft law also outlines the formalization of relationships between private entities and the relevant authorities, establishing deadlines, payment methods—including the possibility of installments—and the consequences for failing to meet these obligations. The goal of this reform is to create a sustainable additional source of funding for national housing policies.