How to buy property in Macedonia? It is quite a straightforward, very secure, and easy process. It all breaks down to several steps; first you need to check are you qualified to own a property in Macedonia – in the first part of the article will be about that, after that we will talk about procedure itself, and for the end we will touch the subject of how much properties cost in Macedonia, and how much money do you actually need to live in North Macedonia.
Table of Contents
Are You Qualified?
Most certainly yes, however there are some potential restrictions. It all depends on are you a citizen of an EU country or OECD country, do Macedonians have the right to own a property in your country, and is it your country under some kind of restrictions or sanctions. For more in depth information please refer to our article How Can Foreigners Buy a Property In Macedonia, and then come back here.
How to Buy Property in Macedonia - The Procedure
Finding Apartment
This is kind of simple, give us a call, make an inquiry and we will find it for you. Our services are free of charge for buyers. You may also see us pick something from our list of available Apartments For Sale in Skopje and give us a ring.
Legal Due Diligence
All property ownership information is publicly available on the website of Agency for Real Estate Cadaster (This is a government agency). There you can find property on the map, or by simply searching for a property based on the number of Ownership Deeds.
On the ownership deed you will find the name of the owner, his address, size and the location of the apartment and within the document, it will be noted if the property has a mortgage on it or not, and is it maybe property in the process of sale. This is why it is crucial for every contract to be notarized.
Role of the Public notary is to make sure that the same apartment cannot be sold to two different persons. Once when the pre-contract is signed and notarized, the buyer’s name is noted within the Ownership Deed, and that will officially show to any other potential buyer that the property is in the process of sale, and that it is not available at the moment.
Now when you make sure that the apartment is not in process of sale, and does it, or does not have a mortgage on it (In case it has a mortgage on it, the buying process will be slightly different.), it’s time to draft a pre-contract agreement.
Pre-Contract Agreement
I don’t know about you, but I am always cautious when it comes to sending money abroad. We all need to think of security first. The security duty in Macedonia goes to the pre-contract arrangement, and it is a must.
In simple words, the Pre-contract states the obligations of both parties, after the pre-contract is notarized the buyer is noted within the ownership dead and the property is officially marked as the property that is in the process of sale. This document is there to protect the rights of both parties, especially the Buyers rights.
Let’s see how it works.
What is the content of the pre-contract? Usually the amount of money that is agreed as a purchasing price, time span in which the deal must be concluded, some small upfront payment called “kapar” as a proof of the serious intentions of the buyer, what is included in the price (Parking, furniture, etc if any is a part of the deal), who will be obligated to pay the sales tax (in most of the cases if not all it is the buyer responsibility), is the property clear from ownership taxes, utility bills (Sellers obligation), who will pay the lawyer fees (usually Buyer’s obligation), and who will pay notary expenses (usually Buyer’s obligation), and that is it. In most cases it’s a pretty simple 3-4 pages document.
After the both parties agree on the pre-contract arrangement terms and conditions, it is crucial for the pre-contract arrangement to be notarized. At this stage no payment is made.
The lawyer who drafted the pre-contract must stamp the document (Law obligation in North Macedonia), and after that the pre-contract can be notarized. Pre-contract can be notarized at any Notary office and its 10 minutes procedure. This is a crucial step, because after that, the buyer’s name will be noted on ownership dead alongside with the the name of the notary’s office where the pre-contract was notarized, this will mark the property as a property that is in the process of sale, and as we said this is publicly available information that anyone can check. Now the buyer can pay a small upfront payment “kapar”.
Pre-contract can be drafted by our law partnering firm. You may also hire your own lawyer, there are no restrictions to that, however using services of our law firm partner will significantly reduce your expenses with absolutely the same amount of security, if not more, as if you are working with your own lawyer.
Now is the time to sign the contract.
The Contract
The contract is signed in 6 copies. All those copies will be filed to the City Of Skopje with the tax return.The tax return is also filled by our law partnering firm and it’s included in their fee. Fee is a flat rate of 65 to 300 euros depending on the value of the apartment, there is no additional cost per hour (same price is for the pre-contract). Of course there are no limitations for you using your own lawyer to do the same job.
After you receive the amount of money that you will be required to pay for the sales tax (tax rate ranges between 2% and 4% depending on the Municipality and condition of the property, and it usually takes about four weeks to get tax return back) you may proceed with the payment of sales tax.
Once it is completed, you can pay the remaining agreed amount of the property value. All this is usually done the same day (tax paying, payment of the remaining amount of the value of the property and notary).
After the contract is notarized you become officially the owner of the apartment. Usually the whole process lasts 4-6 weeks, it’s usually about 4 weeks to get a tax return, and about a week for changes to reflect on the ownership dead.
Pre-Contract Agreement (With Mortgage)
Essentially the same process as for the property without mortgage, just two additional steps. First step, the seller will have to make a request from his bank for sale of the property, after that the bank will issue the account number and the amount of money that needs to be paid to the Bank in order for Bank to clear out the property mortgage, this will be additionally noted in the pre-contract arrangement.
It will usually take about a week for the Agency for Real Estate Cadastre to remove the mortgage note from the ownership deed and after that the contract can be signed.
What is the Cost of Property in Macedonia
This will hugely depend on the city. Naturally Skopje as the capital will be the most expensive, followed by Ohrid which is the biggest tourist center. Other areas will be significantly less expensive, and it will carry little to no investment potential when it comes to single properties.
However, smaller cities like Struga, Krusevo, Kicevo, Bitola, some others, and quite a bit of villages like Galichnik, Lazaropole have the potential for large hospitality projects like hotels for an example due its location and fantastic natural beauty.
On the other hand smaller cities will offer an incredibly easy going way of life if you are looking for a place to settle and your priorities are natural beauty, peace of mind, community and you don’t want to spend much. For example, a town like Krusevo would be a perfect place for you.
We have several articles about this subject:
Skopje Real Estate – 7 Best Reasons Why You Should Invest
Skopje Apartments for Sale – 8 Best Locations to Buy Apartment
Macedonia Real Estate – 101 (The Basics)
How Much Money do You Need to Live in Macedonia?
This is dependable for where you are. Again Skopje will be the most expensive, again followed by Ohrid which will have similar cost as Skopje, while it will experience significant increases during the tourist season (Jun to September). While all other cities will have notably lower cost of living than those two.
Here is extensive information about the cost of living in Macedonia.
For the End
I hope that I have covered all the missing information that you had and that you are prepared to roll up your sleeves and start searching for your next investment opportunity In North Macedonia, here is a list of apartments that we have available at the moment for sale in Skopje.
Or just give us a call on +389 76 912 972 or shoot out an email on office@square.mk and we will do our best to source out the best possible property for you.
Kind 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.
