Attention rental managers in Albania! New rules have arrived that make it easier than ever to rent out your property on platforms like Airbnb or Booking. You no longer need a business tax ID to host short-term guests, but you do need to declare your earnings and pay a 15% tax through the DIVA system.
1. A New Rule That Makes Hosting Easier
If you’re renting out your apartment in Albania through platforms like Airbnb or Booking, here’s some good news: you no longer need to open a business tax ID (NIPT) to do so. The Albanian Tax Directorate has clarified that individuals who rent out immovable property without engaging in any other business activity are not required to register a business.
Instead, they’ll simply need to declare their income through the DIVA system and pay a 15% tax on their earnings by March 31, 2026.
2. What This Means for Hosts and Expats
This change significantly simplifies the process for locals and foreigners alike who want to earn passive income from short-term rentals. Whether you’ve invested in a property in Tirana, Saranda, or the Albanian Riviera, you can now host guests legally without the administrative burden of registering a business.
However, the obligation to report and pay tax remains. Income from short-term rentals will be subject to a 15% personal income tax, payable annually through DIVA (Annual Individual Tax Declaration).
3. Short-Term Rentals Are Booming
Short-term rentals in Albania are booming. Recent data suggests there were about 21,450 active listings on Airbnb and Booking by mid-2025, generating roughly €85 million in yearly revenue.
That’s nearly 40% more than in 2023 and over 70% higher than in 2022, showing how quickly this market is growing.
4. How to Declare and Pay via DIVA
Declaring your rental income is relatively straightforward:
- Log into the DIVA online portal with your personal ID.
- Report your total rental income from the previous year.
- Submit and pay the 15% tax owed by March 31, 2026.
Note that failure to declare income on time could result in penalties and interest charges.
5. Why This Matters for Foreign Investors
For expats and foreign investors exploring Albania’s real estate market, this simplified system makes it even more attractive. With no need for a business registration, you can generate rental income legally and manage your tax obligations with minimal paperwork, making Albania one of the more accessible property markets in Europe.
✅ Need help registering on DIVA or declaring your rental income? Our team at Expatax can guide you step-by-step to stay compliant and avoid penalties. Contact us here »
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