Invest in real estate in northern Macedonia: Foreign individuals and institutions can invest in buildings and homes in northern Macedonia after mutual conditions and approval from the Ministry of Justice. Concerning land, foreign natural and legal persons may own or lease land for construction, but cannot directly acquire ownership of agricultural land without special permission by the authorities.
If the tenant fails to pay the rent after 15 days of the payment schedule, fails to secure the right to the property, the rental contract may be canceled if the landlord secures the approval of the owner before occupying the property.
Failure does no work without consent or creates a situation that the zamindars disturb the peace.
Currently, the real estate market is relatively stable. However, since 2008 there has been no value other than properties in any sense. Recently, the government has adopted measures to stimulate housing demand through subsidies, and forecasts indicate that economic growth may be sustained and prices will soon rise. And foreign investment increases.
Currently, the rental yield of the main pedestrian zones is 9.25%, with the industrial sector at 13%. Although this seems a riskier investment than in Western European cities, investing in real estate in northern Macedonia can still generate interesting returns, especially for investors with cheap entry prices.
Sales tax for the transfer of real estate and property rights is between 2% and 4% of the market value paid by the buyer. A VAT rate of 18% is applied to the first billing within 5 years of construction of residential buildings. If you plan to Invest in real estate in northern Macedonia then, it is better to survey each and every loop hole.
The real estate agent’s fees are usually around 2% of the property’s value in most cases paid by the seller. Notary expenses are established by law and vary between 0.10 and 1% depending on the value of the property. Sales agreements must be prepared by an attorney. Their legal fees are usually around 0.10–0.50%. The registration fee for the property is approximately 0.10%, and in most cases, negotiable. It takes an average of 29 days to complete the procedures required to register a property in northern Macedonia.
100% of the capital gains from the sale of real estate will be included in the taxable basis and will be reduced to 70% if the seller stays in the property for at least one year. Capital gains arising from a real estate transaction will not be included in taxable income if:
- The taxpayer has lived there for at least 1 year and sells the ownership after three years of his purchase,
- A sale is made 5 years after purchase
- Property is inhabited between an inheritance, gift, spouse
- Due to the divorce process.
- Visa and residence permit in Northern Macedonia
A foreign national who wishes to visit the country is required to obtain a visa as long as he is a citizen of the European Union, the United States, Canada, New Zealand, Japan, or Switzerland. Visa-free country for 90 days.
Foreigners’ law includes three categories of Macedonian visas: transit (B), short stay (C), and long stay (D). Transit Visa (B) allows its holders to stay in the country for a maximum period of 5 days. Short-stay visas (C) allow a stay of up to 3 months for a period of six months with single or multiple entries. Long-term visas are issued to foreigners who wish to obtain a temporary residence permit in northern Macedonia for work, study, scientific research, medical treatment, family reunification, or humanitarian work. There are three types of residence permits: up to 3 months, temporary grants, and permanent licenses.
In the above cases, temporary residence permits are issued by the Ministry of Interior. Additionally, EU member states or OECD foreigners, who have acquired residential property, buildings, apartments, or homes of more than 40,000 euros, are also eligible. A temporary residence permit is extendable if its issuance requirements persist at the time of the extension, and as long as the holder remains in Northern Macedonia for a fraction of the period for which the permit was announced.
A permanent residence permit is issued once a person has lived in the country with a temporary residence permit for 5 years or more, and unless the applicant is absent for a continuous period of 6 months or a waiver period of 10 months. Ho. Ho. Ho. Ho. Foreign nationals are not those who have obtained permanent residency permission, they have all the rights and obligations granted or imposed on Northern Macedonian citizens.
Regarding work permits, there are three categories: personal work permit, employment work permit, and work permit.
Individual work permits are issued to foreigners who, at the request of the interested party, intend to start a business activity in northern Macedonia for 1 to 3 years or indefinitely. An employment permit is issued for a maximum period of one year. Work permits are issued for work purposes and their duration may vary.
Real Estate in northern Macedonia
Foreigners can freely purchase apartments and buildings subject to mutual rules and obtain approval from the Ministry of Justice. The parties must first obtain a non-encroachment certificate from the real estate cadastre. Concurrently, the seller must secure the title deed and register the real estate with the cadastre department.
A lawyer then prepares a sales contract, because Macedonian law states that only attorneys can prepare a sales contract. Subsequently, the sales tax will be paid to the municipality (previously paid to the Public Revenue Authority). The decision must be passed by the mayor for the amount of property tax and be distributed within 30 days of submission of the application.
Payment of taxes, the agreement is verified by a notary public, who will inform the Cadastre Department about the change of ownership. A lawyer, or the buyer himself, will then apply for registration to the cadastral office for a new title deed. It may take up to 30 days to register and request a new title deed.
It takes an average of 29 days to complete the seven procedures required to register a property in Macedonia.
Land: Foreign citizens and companies can build land directly for construction in Macedonia, under the Law on Construction Land adopted in 2008. Under the law, construction land is sold through a public tender process. In addition, foreign individuals and companies can lease the land for up to 99 years through a public bidding process.
Transaction cost table
The cost of a large trip transaction includes all the expenses of purchasing and reselling the property – lawyers ‘fees, notary fees, registration fees, taxes, agents’ fees, and more.
Sales tax:
Sales tax is levied on the transfer of property and property rights at 2% – 4% of the market value.
Value Added Tax (VAT):
A value-added tax (VAT) of 18% is levied on the first business within five years of construction of residential buildings and apartments.
Agent’s commission:
A real estate agent’s commission is 2% of the property value. It is usually paid by the buyer.
Legal fees:
Based on market practice, the Revenue Office requests sales agreements to be prepared by an attorney in law. Legal fees are usually negotiable.
Know everything about if you planning to Invest in real estate in northern Macedonia at https://investnorthmacedonia.gov.mk/
