Property investment in Albania and tax related issues

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 <a href=”http://www.propertyuncovered.com/albania.htm”> property in Albania</a>.

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.

The Terranova Residence allows you to profit from the fast developing residential real estate market in Tirana.

This development is designed for the growing mid-market sector of the residential market. The developing economy has creating a rapidly emerging middle class. This emerging middle class is looking to improve their status' including moving to new higher standing apartment buildings.

Situated next to the new Tirana ring, the development is aimed at young upwardly mobile professionals. The urbanization also brings more and more new comers to Tirana giving excellent growth prospects as Tirana's economy is flourishing.

Location
The Terranova Residence is built on a plot situated at 400m from the new Tirana ring and the Kavaja Street one of the two main access road of Tirana (see map).

Transport
The Terranova Residence has excellent access to the public transportation of the Kavaja Street and the New ring road.

Services
The supply of the area with services is exceptionally good, all basic and trade services are accessible on foot.



Building
The Terranova Residence is a contemporary scheme of 1, 2 and 3 bedroom apartment's part of the UNAZA new quarter which has been designed to be an affordable, yet practical development, providing a perfectly balanced lifestyle for its residents and an unbeatable opportunity for investors. The Terranova Residence is a freehold mixed use building comprising commercial ground and lower ground and residential upper parts with a total of 10'000m2.

The commercial areas comprise mini-market, laundry services, restaurant and some bars on the ground floor. 50 parkings are located on the underground floor. There are eight residential floors comprising more than 100 self contained flats, a mixture of one, two and three beds, with balcony and/or veranda.

The spacious residential lots to be deliver 1st quarter 2008 are built by the subdivision of a publicly listed Greek company with million square meters of reference.