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Procedures for registering property in Macedonia |
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- Obtain a non-encumbrance certificate on the property
- Time to complete:
- 1-3 days (simultaneous with procedure 2)
- Cost to complete:
- MKD 600
- Parties
check in the First Instance Court for encumbrances over the land and
obtain a non–encumbrance certificate from that court.
- Obtain a copy from the Cadastre sheet
- Time to complete:
- 3-7 days (simultaneous with procedure 1)
- Cost to complete:
- MKD 250 (Title deed) + MKD 200 (form with the signature at Notary Public) + MKD 50 (Tax stamp)
- The
seller should obtain a Title Deed from the Department of Cadastre and
registration of real estate before the starting of the transaction
formally. In the above case the seller as a company should provide a
copy of its registration papers with the evidence that the General
Manager is authorized to sign the agreement and a verified paper form
of the signature before a notary public. This form will be used as
evidence before the lawyer and later before the notary public who will
verify the sale agreement.
- A lawyer prepares the sale contract
- Time to complete:
- 1-2 days
- Cost to complete:
- MKD 24,640
- A
lawyer prepares the sale contract agreement and usually completes the
whole process on behalf of parties, hence the higher fees noted here.
In practice the Revenue Office requests the sale agreement to be
prepared by an attorney-at-law.
- Payment of sale tax on real estate
- Time to complete:
- 30 days
- Cost to complete:
- MKD 100 (administration fee) + 3% of property value
- Tax
liability incurs on the date of conclusion of the agreement for
transfer of ownership. The base of tax on sales of real estate is the
market value of the real estate at the moment of the tax liability.
Previously paid to the Public Revenue Authority, the payment of this
tax moved from the Revenue Authority to the Municipalities in 2005.
According to the Law on Property Taxes (Official Gazette of RoM, No.
61, dated September 13th 2004), the tax rates are determined by each
Municipality, and the Municipality administration is authorized to
determine and collect the property taxes as per the location of the
real property. The Mayor should pass and deliver the decision for the
amount of property tax within 30 days from the day when the taxpayer
submitted the application.
The rate of tax on sale of real estate is proportionate and equals 3%
of the determined market value of the property. If the two parties are
companies registered for VAT, the seller will pay 18% VAT on the
determined purchase price from which an amount of 3% paid sales tax
shall be deducted. The Law does not provide such provision.
- The contract is approved by a public notary
- Time to complete:
- 1 day
- Cost to complete:
- Notary
fees, according to the following schedule (with a maximum of MKD
10,000), set in accordance with the Tariff for Notary Services adopted
in 2002:
Property value (in MKD) Notary’s fees
Up to 100,000 1,000
From 100,000 to 200,000 1,500 From 200,000 to 300,000 2,500
Above 300,000 1% of property value (max. MKD 10,000)
- The agreement is verified
before a notary public by both parties (seller and buyer). The notary
will not verify the agreement if tax on sale of the property is not
paid to the Revenue authority. In case that the tax is not paid when
the agreement is signed before a notary public, the seller will be
obliged to pay tax after signing and to submit the evidence on paying
to the notary public, which who will then verify the agreement.
According to the Law on Notary Public, a notary public is obliged to
submit these documents to the Cadastre in order to inform the Cadastre
about the change in ownership.
- Apply for registration into the Cadastral Office
- Time to complete:
- 60 days
- Cost to complete:
- MKD 500 (for changing the title) + MKD 250 (for the new title deed) + MKD 50 (Tax stamps)
- Parties
submit a request for changing the title to the Cadastral Office. A
lawyer or the buyer obtains from the Cadastre a new Title Deed in which
the new owner will be registered. Ownership right over real estate is
established at the moment of registration of that right in the Public
Book at the Cadastre, though in practice documentation would be
required to resell or use the property to obtain a loan. On March 10,
2005, Amendments to the Law on Survey, Cadastre and Registration of the
Rights over real property (Official Gazette of RoM, no. 84) provided
for the possibility of conducting transactions through the Cadastre in
electronic form. These amendments took effect in November 2005, however
have not yet been put into practice. Once implementation is complete,
it is expected that the time for title registration would be
significantly reduced. The documentation shall include: the sale
contract approved by public notary (obtained in Procedure 6).
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Regulations 
