After almost two months of delay, the Ministry of Finance has finally issued the instruction that paves the way for the entry into force of the property revaluation. The instruction, signed by the Minister of Finance Petrit Malaj and the Director of the Cadastre Lorena Goxhobelli, states that the right to carry out the revaluation is granted to all individuals who own registered real estate (land and/or building) or who acquire ownership and register it by December 31, 2026.
According to him, the revaluation can also be carried out for those assets that have already gone through this process. In cases where an individual owns more than one asset, the revaluation will be carried out for each one individually. The instruction specifies that the entire process will be carried out online, with two procedures, with a licensed expert or at the State Cadastral Agency.
When an individual chooses to have the revaluation done at the ASHK, the value of his property is brought closer to the minimum fiscal prices in force. “If the individual chooses to have the revaluation of the property done by the ASHK, it is done at the minimum fiscal prices in force at the time of the revaluation process and in accordance with the provisions of joint instruction no. 34, dated 29.12.2023, “On the tax on the transfer of ownership of immovable property”. In this case, the taxable base is calculated as the difference between the value resulting from the revaluation (according to the minimum fiscal prices in force) and the deductible value determined in point 3 of this chapter,” the instruction states.
While when the revaluation is done by a licensed expert, the value of the property may be even higher. "If the individual chooses the revaluation of the property by a licensed expert, the taxable base is calculated as the difference between the value reflected in the property valuation act and the deductible value. In any case, the value reflected in the property valuation act by the licensed expert cannot be less than the minimum fiscal price," the instruction continues. For the first time in this process that aims to bring the value of the property closer to real market prices, the depreciation of the property will also be recognized, 1% for each year of age.
"In the case of buildings, the reference prices will be reduced by 1% of the value for each additional full year of use, starting from the date of obtaining the title of ownership for the first time. The 1% discount will be applied to all types of real estate buildings. This discount must not be greater than 30% of the reference price determined in the VKM 2 in implementation of articles 21, point 2, 22, point 5, 22/1, 22/3 and 22/4 of law no. 9632, date 30.10.2006, "On the local tax system", as amended", the instruction states.
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