There are several conditions – if they are citizens of European Union States and if they are citizens of countries that are members of the Organization for Economic Cooperation and Development. Citizens of other countries can have the mentioned rights only according to reciprocity. This might sound a bit complicated, but it’s not, in this article we will explain how can foreigners buy property in Macedonia. Let’s go step by step.
Table of Contents
EU & OECD
It is not likely that you will not know if your country is an EU member so I will skip the membering states, and when it comes to OECD (Organization for Economic Cooperation and Development), you might not be familiar with it so here is the list.
The OECD’s 38 members are: Austria, Australia, Belgium, Canada, Chile, Colombia, Costa Rica, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Latvia, Lithuania, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom and the United States.
If your country is not on the list of countries, no worries, let’s check the next category.
Reciprocity Explained
Reciprocity – what does that mean and how can foreigners buy property in Macedonia based on that? It’s simple, if Macedonian citizens are allowed to buy a property in a certain country, the citizens of that certain country are allowed to own a property in Macedonia as well.
Please, for more details contact us on office@square.mk
Foreign companies located in countries outside of the lists above can purchase properties in Macedonia, with some restrictions.
What are the Restrictions?
If the organization or government is under sanctions, or some type of restrictive measures and if adopted by Macedonia authorities or international organizations in that case there is no option to buy property in Macedonia. With that, if the company comes from a country that is characterized as a high risk under the anti-money laundering regulations of Macedonia will undergo additional client checkups. In that case a transaction may be rejected.
Taxes & Fees
There are several taxes and fees that are required to pay; Fees for searches related to the real estate and title review around 4€ – this is public information and can be easily checked over AREC
Fee for registration of the ownership in the Agency for Real Estate Cadastre.
Real estate sales tax (tax rate ranges between 2% and 4% depending of the Municipality and condition of the property)
Real Estate Agency fees are from 0% in our agency, to up to 3% with other agencies.
Lawyers fees for drafting pre-contract & contract are dependable on the value of the apartment and they range from around 65€ to 500€.
Notary fees
Taxes for owning an apartment in Skopje are from 0.10 to 0.20% based on estimated market value of the property.
Tax on rent income is a flat rate of 10%.
How Can Foreigners Buy Property in Macedonia?
After you did your due diligence aka everything checked on the lists above procedure is quite simple.
Find apartment
Sign pre-contract with the payment of ‘kapar” small advanced payment (pre-contract must be drafted, stamped and signed by lawyer)
Notarized pre-contract
Complete all the obligations from the pre-contract (Obligations of the buyer and seller) including payment
Sign the contract (contract must be drafted, stamped and signed by lawyer)
Notarize the contract
Done, you have an apartment in Skopje
This is quite a simplified procedure in steps. For a detailed procedure please read our in-depth article about purchasing property in Skopje.
For the End
You could say that Macedonia and its capital Skopje are the rising stars of the South East Europe Market. Foreign investment (FDI) has amounted to almost 2 billion dollars in recent years which is a big number for such a small country of just a bit above 2 million population.
There are several capital projects that are undergoing at the moment (Freeway and rail road construction among others), and more are coming, as an EU candidate and NATO member, being ranked 10 of 190 in the ease of doing business index by the World Bank, being one of the most affordable real estate markets in Europe, and with a fantastic tourism potential future looks bright for this small European country and it’s here for you to take that opportunity at the very own beggening of it.
Best regards,
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.
