Buying Real Estate in Macedonia | Foreigners

*This article is entirely sourced from the website of Aleksov & Memishi Law Office.

Before buying real estate in Macedonia, foreigners interested in buying, whether for personal use, business activities, or long-term investment, should check if this is legally possible.

1️⃣ Can Foreigners Buy Real Estate in Macedonia?

The answer is:

✅ Yes, but under certain conditions. Macedonian law allows foreigners to acquire ownership of real estate, but with specific restrictions depending on the buyer’s nationality, the type of property, and the purpose of use. The procedure involves several steps, which will be explained in this informative text.

2️⃣ What Country is the Foreigner From?

2.1 🌍 Citizen of an EU/OECD Country?

Citizens of EU/OECD Countries They have the same legal status as Macedonian citizens when purchasing an apartment, house, or business premises.

Citizens of Non-EU/OECD Countries They can purchase real estate only if there is a reciprocity agreement between Macedonia and their home country unless an international agreement stipulates otherwise.

To check which countries are part of the EU/OECD, click here.

2.2 🌾 Agricultural Land – A Special Case

Foreigners cannot acquire ownership of agricultural land, regardless of their nationality.Instead, they may opt for a long-term lease, which requires approval from the relevant institutions (Ministry of Justice, upon a prior opinion from the Ministry of Agriculture and the Ministry of Finance).

2.3 🏢 Alternative: Register a Company in Macedonia

If you do not have the right to purchase directly (e.g., your country has no reciprocity with Macedonia), you can register a company in Macedonia (such as a Limited Liability Company). A company registered in Macedonia faces no legal restrictions on purchasing real estate (except for agricultural land), making this a legal way to own property indirectly.

To check how to register a company in Macedonia click here.

3️⃣ Checking the Property You Wish to Buy

Before buying a property in Macedonia, conducting thorough checks is essential to ensure a smooth and legally secure transaction. This process involves two steps: legal check and physical inspection.

3.1 ✅ Legal Check

Before buying real estate in Macedonia, checking its legal status at the Real Estate Cadastre Agency is a crucial step to ensure a secure transaction. Every property is registered in an official document, which provides essential legal details about ownership, encumbrances, or usage restrictions. Reviewing this document helps buyers avoid legal complications and ensures that the property can be lawfully transferred.

The first and most important aspect to check is ownership. The buyer must confirm that the seller is the registered legal owner of the property. If the property has multiple claimants, especially in cases of inheritance, there could be ownership disputes that might delay or even prevent the sale.

Another element is encumbrances and usage restrictions. The Property Sheet will indicate whether the property is subject to a mortgage, bank loan or has other usage restrictions. If such financial or other obligations exist, they must be settled, or approved before the ownership transfer.

3.2 🧱 Physical Inspection

Physical inspection of the property is equally important to ensure there are no hidden issues that could lead to unexpected expenses or complications after purchase. Visiting the property in person allows the buyer to assess its structural condition, identify potential renovation needs, and uncover any hidden defects that may not be evident in documents or listings.

During the inspection, buyers should pay attention to the overall state of the building, including the quality of construction, signs of structural damage, or wear and tear. Cracks in walls, uneven flooring, leaking roofs, or faulty plumbing and electrical systems can indicate major repair costs in the future. Additionally, checking for moisture, mold, or water damage is crucial, as these issues can affect the property’s long-term value.

Beyond the structure itself, it’s also important to check the surroundings and accessibility. The condition of common areas in apartment buildings, road access, parking availability, and proximity to essential services like public transport, markets, and schools can significantly impact the property’s practicality and resale value.

4️⃣ Purchase Agreement – Preparation and Legal Steps

4.1 🤝 Negotiations

During negotiations, key transaction elements are determined, such as:

• Purchase price of the property;

• Deposit, if applicable;

• Payment method and deadlines (lump sum, installments, or advance payment);

• Handover period (key transfer);

• Confirmation that the property is free of mortgages, liens, or other encumbrances;

When the conditions are agreed during the negotiations, the next step is preparing and signing the Purchase Agreement.

4.2 📄 Contract Drafting

Once the negotiations are finalized and both parties agree on the key terms, the next crucial step is drafting the Purchase Agreement. This document formalizes the transaction and outlines all rights and obligations of the buyer and seller. According to our laws, if the property’s value exceeds €10,000, the agreement must be prepared by a licensed attorney.

The agreement must include a precise description of the property from the property sheet, the agreed purchase price, and the terms of payment—whether it’s a lump sum, installments, or an advance deposit. It should also specify the handover date, confirming when the buyer will take possession of the property. A key legal element is the clausula intabulandi, which grants permission for the buyer to register ownership in the Real Estate Cadastre. Additionally, the contract must include a statement from the seller affirming that they are the rightful owner and that the property is free from mortgages, liens, or legal disputes. If there are any mortgages, the real estate can be purchased with approval from the mortgage holder.

4.3 📝 Preliminary Contract

A preliminary agreement is signed when parties wish to define the terms in advance but cannot immediately conclude the final contract.It is used usually when:

• The buyer is awaiting a bank loan;

• The seller has incomplete documentation;

• Legalization or property title registration is pending;

• The property is subject to a mortgage release or third-party approval;

• A specific timeframe is needed to fulfill obligations before finalizing the sale etc…

5️⃣ Tax Registration and Payment

Once the contract is signed (but before notarization), it must be submitted to the tax office for tax calculation.

5.1 📁 Submission to the Tax Office

The signed original contract (at least six copies), property sheet, copies of ID documents, and a completed tax declaration form must be submitted to the relevant tax office (usually in the municipality where the property is located).The tax authorities check the purchase price (or market value of the property) and calculate the tax rate, which generally ranges between 2% and 4% of the agreed price or assessed market value.

📍 In Skopje, the tax office is located at Blvd. Ilinden No. 82, Skopje Center (Building 16, opposite the Zoo).

5.2 💸 Payment of the Tax and receiving the Contracts back

Upon receiving a tax decision, the buyer must pay the tax within the specified deadline and provide proof of payment. Once the tax is paid, the contracts can be collected from the tax office, now stamped as taxed.

The next step is a notarial certification (solemnizacija) of the contract.

6️⃣ Notarial Certification (Solemnizacija)

After submitting the contract to the tax office and paying the real estate transfer tax, the contract must be certified by a notary. This process legally validates the contract as a public document.

Requirements for Notarial Certification:✅ The contract must be previously taxed;✅ Full payment of the purchase price must be completed;✅ An appointment with a notary and submission of all necessary documents, including the property sheet;✅ Personal Presence of the Parties;On the day of notarization, both the buyer and the seller must be present at the notary’s office. If a party cannot attend, they may be represented by an authorized person with a notarized power of attorney.

The certified contract is then used as the basis for registering the new owner in the Cadastre.

7️⃣ Registration in the Cadastre

Once notarized, the notary electronically submits the certified contract and supporting documents to the Agency for Real Estate Cadastre.The Cadastre then carries out the administrative process of registering the buyer as the new owner.Once registered, the buyer officially and legally becomes the owner of the property.

8️⃣ Handover of Possession

The handover of possession marks the final step in the property transaction, where the buyer officially takes control of the property. While possession can technically be transferred at any stage, it most commonly occurs on the day the full purchase price is paid. At this point, the seller hands over the keys and physical access, allowing the buyer to enter and use the property freely. This step signifies the practical completion of the sale, ensuring that the buyer can now exercise full rights over their new home or investment.

To formalize the transfer, both parties typically sign a handover protocol, a document that confirms the buyer has received possession of the property in the agreed-upon condition. This protocol can also include notes about utility meter readings, any remaining obligations, or agreed handover conditions. By signing this document, the seller releases their responsibilities, and the buyer acknowledges that they are taking over the property. This ensures a smooth transition and minimizes potential disputes after the sale.

9️⃣ Reporting the Purchase to the Central Registry

The final step in purchasing real estate in Macedonia as a foreigner is reporting the investment to the Central Registry.

This is a legal requirement that helps the government maintain accurate records of foreign investments in the country. Reporting ensures that all foreign transactions are properly documented, facilitating the legalization of property transfers and the smooth flow of funds related to the investment.

Foreign buyers must report their investment within 60 days of signing the purchase contract. The process involves submitting a registration form, a copy of the purchase contract, proof of payment, and the property sheet to the Central Registry. Failing to submit the report within the required timeframe is considered a violation of the Foreign Exchange Law, and the buyer may face sanctions. Therefore, it’s important to ensure that this step is completed on time to avoid any legal complications.

In conclusion, buying property in Macedonia as a foreigner involves several key steps to ensure a smooth and legally secure transaction. These steps include verifying eligibility based on nationality, conducting legal checks with the Cadastre and a physical inspection of the property, negotiating key terms in the purchase agreement, and formalizing the transaction with proper legal documentation. Once the contract is executed, foreign buyers must report the investment to the Central Registry within 60 days to ensure compliance with Macedonian laws.

By following these steps carefully, buyers can safeguard their interests, avoid legal complications, and ensure a successful investment in Macedonian real estate.

*Note: This text is informative content, based on the applicable laws in Macedonia, with the author’s personal opinion. The content should in no case and under no circumstances be considered as professional advice

**This article is entirely sourced from the website of Aleksov & Memishi Law Office.

***Skopje.IN disclaims responsibility for the content of the text, as it is completely sourced from another website.