Construction costs are a big issue, with confusion common about what items can be depreciated and what is a capital works deduction of 2.5 per cent a year.
Deductions can be claimed for the decline in value of some types of depreciating assets in residential rental properties, for example curtains, blinds, dishwashers, refrigerators, stoves, television sets and hot water systems.
*CONVEYANCING costs, which instead form part of the cost base.
*TRAVEL expenses where the main purpose of the trip is a holiday and the property inspection is incidental to that.
*EXPENSES relating to private use of the property.
*INTEREST on any private portion of a loan that is used for both investing and private purposes.
Depreciation schedules have been around for a while but not well advertised. It’s amazing what the quantity surveyors find that can be depreciated.
A depreciation schedule costs about $500 for a typical three-bedroom investment property in property in Albania.
People should keep records of their expenses with their tax return.
In Albania's growing economy, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors. Apart from the economic growth which is spurring growth in the real estate sector, the recognition of the need to invest heavily in infrastructure and of involving private participation therein, the recent legislation regarding creation of Special Economic Zones (Albania One Euro plan) and the growth of road concession contracts witness it.
The tax rules described above apply totally to the property market in Albania.