Macedonia: Guide to Buying Costs and Procedures
Country Rating » 
In Depth
- Overview
- Rental Yields
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Useful Links
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Rental Yields
- Rents
- Price/Rent Ratio
- Buy/Sell Costs
- Capital Gains Tax
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
Buying costs are very low in Macedonia
How high are realtors’ and lawyers’ fees in Macedonia? What about other property purchase costs?
Transaction Costs |
||
| Who Pays? | ||
| Sales tax | 3% | buyer |
| Agent's commission | 2% | buyer |
| Notary fee | 0.1% - 1.0% | buyer |
| Legal fees | 0.1% - 0.5% | buyer |
| Registration fees | 0.001% - 0.1% | buyer |
| Costs paid by buyer | 5.15% - 6.60% | |
| Costs paid by seller | nil | |
| ROUNDTRIP TRANSACTION COSTS | 5.15% - 6.60% | |
| See Footnotes Source: Global Property Guide |
||
How difficult is the property purchase process in Macedonia?
Foreigners cannot buy land in Macedonia. Foreign companies, however, can lease land for up to 99 years. Foreign individuals can freely buy apartments and buildings subject to the reciprocity rule and approval from the Ministry of Justice.
The buyer must first secure a non-encumbrance certificate for the property from the First Instance Court. Concurrently, the seller should secure a copy of the Title Deed, as well as registration of real property from the Department of Cadastre. A lawyer then prepares a sale contract, as Macedonian Law stipulates that only lawyers can draw up sale contracts. The sale agreement is then delivered to the Public Revenue Authority for payment of sales tax on real estate. Pursuant to paying taxes, the sale agreement is then verified by a notary public, who is tasked to notify the Department of Cadastre about the change of ownership. A lawyer, or the buyer himself, would then apply for registration into the Cadastral Office for a new deed title. Registration and request for a new Title deed could take as much as 60 days.
It takes an average of 74 days to complete the six procedures needed to register a property in Macedonia.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Sales tax:
Sales tax on transfer of property and property rights is levied at 3% of market value.
Agent's commission:
Real estate agent's commission is 2% of property value. It is typically paid by the buyer.
Legal fees:
Based on market practice, the Revenue Office requests sale agreements to be prepared by an Attorney at Law. Legal fees are generally negotiable.
VAT:
VAT at 18% is imposed on first-turnover within five years of construction of residential buildings and apartments.
Notary fee:
Notary fees are set in accordance with the Tariff for Notary Services adopted in 2002.
NOTARY FEES |
|
| VALUE OF THE PROPERTY (MKD) | NOTARY FEES ( MKD) |
| Up to 100,000 | 1000 |
| From 100,000 to 200,000 | 1500 |
| From 200,000 to 300,000 | 2500 |
| Above 300,000 | 1% of property value (max. MKD 10,000) |
Registration fee:
0.2% - 0.4%, Negotiable.
REGISTRATION FEES |
||
| REGISTRATION FEES | MKD | € |
| Title deed | 200 | 3.38 |
| Form w/ signature | 200 | 3.38 |
| Administration fee | 100 | 1.69 |
| Registration of title deed | 200 | 3.38 |
| Total | 700 | 11.83 |
Macedonia - more data and information
Post a comment
Subscribe to our Newsletter!
Enter your email address to sign up.
Your Comments
Be the first to comment!