With its sun-drenched beaches and a booming property market, Albania has emerged as an attractive destination for international investors. Discover how a Latvian SIA can structure your coastal real estate investment.
Why Invest in Albanian Real Estate?
Investing in Albanian real estate offers several advantages. First, the country is enjoying sustained economic growth, driven by a dynamic tourism sector. Political stability further boosts the appeal of this destination for investors. Albania also offers a favourable legal framework, guaranteeing a safe and profitable investment.
Good to know
Albania is seeing annual property price growth of 5.5%, making it an interesting opportunity for investors looking to diversify their portfolio.
Coastal Property Prices by Region
Coastal property prices vary by region across Albania. Here are a few comparisons:
- Sarandë: 1-bedroom apartment, 108 m² at €235,600.
- Vlorë: 2-bedroom apartment, 116 m² at €370,000.
- Durrës: apartments available, generally at competitive prices.
Average residential prices per square metre range between €900 and €1,200, offering attractive value for foreign investors.
Rental Yields in Albania: Returns and Tourist Seasonality
Albania offers appealing rental yields, generally between 6% and 8%. This return is boosted by tourist seasonality, which draws large numbers of visitors every year, especially over the summer months.
- A coastal apartment in Sarandë, for example, can be let at competitive rates, maximising return on investment.
It's important to factor in rental management and the tourist season to optimise income.
Regulation and Taxation for Foreign Investors
As a foreign investor, it's essential to understand the Albanian regulatory framework. The country is broadly welcoming to foreign investors, with a relatively straightforward purchase process.
Good to know
Local property taxes are moderate, which can reduce the total cost of ownership for a foreign investor.
Using a Latvian SIA to Invest: Advantages and Process
Investing through a Latvian SIA can offer notable tax advantages. It allows you to structure the investment in a way that optimises taxation while benefiting from the European Union's regulatory framework.
Setting up an SIA is a relatively simple process that can be carried out entirely online, offering flexibility and speed. Once the company is set up, it can acquire property in Albania, making it easier to manage international assets.
For more details, see our guide on holding property through a company.