Capital Gain Tax Impact on Affordable Housing. The Case of Albania
Capital Gain Tax Impact on Affordable Housing. The Case of Albania

Author(s): Olta Milova, Reinaldo Pipiria
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Affordable housing; Capital gain tax; Housing market
Summary/Abstract: Housing plays an important role in our lives. Access to shelter is a basic human right and a key determinant of individual welfare. Different factors such as high prices, level of income, construction costs, and supply shortages can restrict the ability to afford a house. Except for private sector development, affordable housing can often rely on public policies such as tax incentives or low-interest loans to developers. The authors focus on capital gain tax as an important instrument that can affect the supply of housing, especially when it comes to investment properties. If capital gains taxes are high, real estate investors may be less inclined to buy or sell properties, potentially limiting the availability of homes on the market and driving up prices.

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