The answer isn’t a straightforward yes or no—there are specific conditions. Citizens of EU member states or OECD countries are straight yes, while others may need to navigate the reciprocity law. It might sound complex, but don’t worry. In this article, we’ll break it down step by step, making it simple to understand how foreigners can buy property in Macedonia.
Table of Contents
EU & OECD
If you’re a citizen of an EU member state or one of the 38 OECD countries, you’re in luck—these are clear pathways to property ownership in Macedonia. Not sure if your country is part of the OECD? Check out the list of members on the official OECD website.
If your country is not on the list of countries, no worries, let’s check the next category.
Reciprocity Law Explained
What does reciprocity mean when it comes to buying property in Macedonia? It’s straightforward: if Macedonian citizens are allowed to purchase property in your country, then citizens of your country are allowed to own property in Macedonia.
For more details or specific questions about reciprocity, feel free to contact us at office@square.mk.
Additionally, foreign companies based in countries outside the EU and OECD lists can still purchase properties in Macedonia, although certain restrictions may apply.
What are the Restrictions?
Organizations or governments under sanctions or restrictive measures imposed by Macedonian authorities or international organizations are prohibited from purchasing property in Macedonia. Additionally, companies originating from countries classified as high-risk under Macedonia’s anti-money laundering regulations will be subject to enhanced scrutiny. In such cases, transactions may be rejected following thorough client assessments.
Taxes & Fees When Buying Property in Macedonia
When purchasing property in Macedonia, there are several taxes and fees to consider:
- Search and Title Review Fee: Approximately €4 for accessing public records via the Agency for Real Estate Cadastre (AREC).
- Ownership Registration Fee: A mandatory fee for registering ownership with the Agency for Real Estate Cadastre.
- Real Estate Sales Tax: Ranges from 2% to 4%, depending on the municipality and the property’s condition.
- Real Estate Agency Fees: These vary, with some agencies charging up to 3%, while our agency offers 0% fees.
- Lawyer Fees: For drafting the pre-contract and contract, fees depend on the property’s value, typically ranging from €65 to €500.
- Notary Fees: Required for notarizing legal documents.
- Property Tax: Annual tax on apartment ownership in Skopje ranges from 0.10% to 0.20% of the property’s estimated market value.
- Rental Income Tax: If you rent out the property, a flat tax rate of 10% applies to the rental income.
How Can Foreigners Buy Property in Macedonia?
Now that you’ve ensured you’re qualified to buy, found the right property, verified its ownership, and checked for any existing mortgages, it’s time to move forward with the actual purchase process. Let’s walk through how it’s done, step by step, ensuring everything is secure and straightforward.
Drafting a Pre-Contract Agreement
The pre-contract ensures security for both parties and includes key terms such as:
- Agreed price and payment terms.
- Upfront deposit (kapar) to show buyer intent.
- Items included in the sale (e.g., parking or furniture).
- Responsibility for taxes (Property Transfer Tax paid by Buyer), legal fees (Paid by Buyer), and utility payments (Paid by Seller).
This document is prepared by a lawyer (Paid by Buyer), notarized (Paid by Buyer), and publicly recorded. This step officially marks the property as “in the process of sale.”
Signing the Final Contract
- Signed in six copies and registered with the City of Skopje.
- A tax return is filed, and the sales tax (2-4%) is calculated.
- Once taxes are paid, the final property payment is completed.
After notarization, you officially become the property owner. Ownership changes typically reflect in government records within a week.
Special Cases: Properties with Mortgages
If the property has a mortgage:
- The seller must request a clearance amount from their bank.
- This amount is paid by the Buyer to the bank to release the mortgage (Drafted in Pre-Contract).
- The mortgage removal process takes about a week before the final contract is signed.
Estimated Costs of Property in Macedonia
- Skopje: Highest prices, ideal for investments.
- Ohrid: Popular tourist destination with seasonal price fluctuations.
- Smaller Cities/Villages: Affordable with opportunities for large hospitality projects or peaceful living.
For a more in-depth exploration of this topic, we recommend reviewing our articles, Complete Investment Guide for Skopje Real Estate Market, Best Locations for Investment in Skopje and Macedonia Real Estate 101.
Cost of Living Considerations
Living expenses vary by location, with Skopje and Ohrid being the most expensive. For more details, refer to our Cost of Living in Macedonia article.
For the End
Macedonia and its capital, Skopje, are emerging as rising stars in Southeast Europe’s real estate market. With nearly $2 billion in FDI in recent years, NATO membership, EU candidacy, and ongoing infrastructure projects, Macedonia is poised for significant growth. Ranked 10th out of 190 countries in ease of doing business, it offers one of the most affordable real estate markets in Europe alongside fantastic tourism potential. The time to invest is now.
Best,
Ivan Radisavcevic – SQUARE – CEO
Disclaimer:
The information provided on this blog is for general informational purposes only and does not constitute professional financial, legal, or real estate advice. The content is based on personal opinions and experiences and may not apply to your specific situation. Every situation has its own unique aspects. While we strive for accuracy, we do not guarantee the completeness or timeliness of the information provided. For personalized advice, please consult with us directly. Please note that this blog advertises our real estate agency and its services in general and is not tailored to specific needs.
