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Purchase Process in Macedonia

Below is the standard purchase process in Macedonia and issues that may affect that purchase:

• 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.
• The buyer must secure a non-encumbrance certificate for the property from the First Instance Court and approval to purchase from the Ministry of Justice.
• The seller should secure a copy of the title deed, as well as registration of real property from the Department of Cadastre.
• Macedonian law states that the sale contract must be drawn up by a lawyer.
• The sale agreement is then delivered to the Public Revenue Authority for payment of sales tax.
• Once taxes are paid, the sale agreement is then verified by a notary public, who then notifies the Department of Cadastre about the change of ownership.
• You must then apply to the Cadastral Office for a new title deed. This can take up to 60 days.

Costs of a standard property purchase in Macedonia include the following:

The purchaser is responsible for the following costs:

• 2% Estate agent commission - typically paid by the buyer.
• Between 2% and 4% sales tax on transfer of property and property rights, based upon the market value of the property determined by the public revenue office. Sales tax is exempt on the first sale of residential premises within the first five years of construction.
• 0.1% Registration fee for real estate transactions.
• 0.3% Non-encumbrance certificate fee.
• 12% Capital gains tax is levied on 70% of the capital gained, on properties sold with less than 3 years of ownership. This is set to be reduced to 10% in 2008.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.