Albania 💰 ALL Last updated2026-05-28

Kredi për shtëpi Calculator Albania

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Quick answer (Albania)

A L 10,000,000 kredi për shtëpi at 5.8% over a 20-year term works out to a monthly payment of about 70 494 Lekë, with total interest of 6 918 583 Lekë over the full term.

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Mortgage Calculator

USD

Home Value

LTV 80% · No PMI ✓

Loan Amount

Interest Rate

Term

Total Monthly

$87,161

PITI

Principal + Interest

$70,494

41% goes to interest

Total Interest

$6,918,583

over 20 years

Monthly Breakdown

Principal & Interest$70,494

Property Tax (1.1%/yr)$11,458

Homeowner's Insurance (0.5%/yr)$5,208

Total Monthly$87,161

Principal vs Interest Split

59% principal

41% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Kredi për shtëpis in Albania

Typical loan

10 000 000 Lekë

in Albania

Typical rate

5.8% p.a.

prime borrower, 2026

Typical term

20 years

most common

Market overview

Albania's housing finance market is led by Banka Kombëtare Tregtare (BKT), Credins Bank, Raiffeisen Bank Albania, Intesa Sanpaolo Bank Albania, OTP Bank Albania, and Tirana Bank, with smaller players including Union Bank and Alpha Bank Albania. The Bank of Albania (Banka e Shqipërisë) held its policy rate at 2.75-3.00% through 2025, reflecting moderate inflation and continued EU-accession-driven macro convergence — Albania opened formal EU membership negotiations in 2022 and has been progressing through chapter screenings. A substantial share of Albanian mortgages remain euro-denominated despite domestic-currency lending growth, reflecting deep euroisation of household savings and remittance flows.

Why 5.8% is the typical rate

5.8% reflects a 20-year ALL-denominated mortgage from Credins or BKT to a salaried Tirana borrower at 75-80% LTV in early 2026; euro-denominated loans price 80-150 bps lower but carry FX risk against ALL income.

Tax & regulatory notes

Albania charges a property transfer tax of 2% on residential sales (with first-home exemptions under specific conditions) plus minor cadastral registration fees. Annual property tax is levied at 0.05% on apartment buildings (residential) and higher rates on commercial property. There is no broad first-time-buyer subsidy programme, though state-backed reconstruction loans (post-2019 Durrës earthquake) and selective municipal incentive schemes exist. Foreigners may freely buy apartments and built structures; agricultural land purchase by non-EU foreigners is restricted to reciprocity arrangements and requires Council of Ministers approval.

🧮 Worked example

A L 10,000,000 kredi për shtëpi at 5.8% over a 20-year term

Loan amount

10 000 000 Lekë

Annual interest rate

5.8%

Term

20 years (240 months)

Monthly payment

70 494 Lekë

Total interest paid

6 918 583 Lekë

Total paid (principal + interest)

16 918 583 Lekë

❓ FAQ (Albania)

Common questions in Albania.

Should I take a EUR or ALL mortgage in Albania?

EUR-denominated mortgages from Raiffeisen, Intesa, or Credins typically price 80-150 bps below ALL loans because of cheaper euro funding, but they carry FX risk if your income is in lek. The Bank of Albania has discouraged unhedged euro lending to retail borrowers since 2017 — banks now apply stricter affordability tests on FX mortgages. If your income is ALL, the ALL loan is generally safer despite the higher headline rate.

How does Albania's EU accession affect property and mortgages?

Albania opened formal EU membership negotiations in July 2022 and continues chapter screening through 2025-2026. EU accession progress has tightened banking supervision (Basel III implementation, AML alignment) and improved investor confidence in Tirana property. Pre-accession alignment of cadastral and property-registration law has also reduced title risk, although informal/unregistered construction remains a legacy issue in some areas.

Can a foreigner buy property in Tirana or on the coast?

Yes — non-Albanians can freely buy apartments and built structures (including villas) anywhere in Albania, including coastal Vlorë, Sarandë, and Durrës. Only agricultural land purchases by non-EU foreigners are restricted, typically requiring reciprocity arrangements or Council of Ministers approval. Mortgages to foreign buyers are available from Raiffeisen, Intesa, and Credins at 50-60% LTV, usually in EUR.

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