North Macedonia Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Gift Taxation

North Macedonia has a favourable inheritance tax regime: direct heirs (spouse, children, parents, siblings) are exempt from inheritance tax. There is no estate duty or death tax on assets transferred upon death. However, inter vivos gifts are subject to gift tax at 10% if the value exceeds MKD 500,000 per recipient per year. The absence of inheritance tax makes North Macedonia an attractive jurisdiction for wealth preservation and estate planning. The Law on Inheritance provides a comprehensive framework for both testate (with a will) and intestate (without a will) succession. Forced heirship rules protect the spouse and children's right to inherit a portion of the estate.

Inheritance Tax — Exempt for Direct Heirs

Assets passing to the following heirs upon death are exempt from inheritance tax:

• Spouse — full exemption regardless of value
• Children (including adopted) — full exemption
• Parents — full exemption
• Siblings — full exemption
• Grandchildren and grandparents generally also exempt

Inheritance by more distant relatives or unrelated persons may be subject to gift tax at 10%. The exemption applies per heir, not per estate. There is no limit on the value that may be inherited tax-free by direct heirs. The heir steps into the deceased's cost base for tax purposes (no step-up to market value at death).

Gift Tax — 10% on Inter Vivos Gifts

Gifts made during the donor's lifetime (inter vivos) are subject to gift tax at 10% on the value exceeding MKD 500,000 per recipient per calendar year. Key features:

• The annual exemption is MKD 500,000 per recipient — gifts below this threshold are tax-free
• Gift tax applies to cash, real estate, shares, vehicles, and other assets
• The donor is responsible for reporting and paying the gift tax
• The tax is calculated on the market value of the gift at the time of transfer
• Gifts to charitable organisations registered in North Macedonia are exempt
• Gifts between spouses are exempt from gift tax

The gift must be reported to the PRO within 30 days of the transfer. Failure to report may result in penalties and interest.

Forced Heirship Rules

Macedonian inheritance law includes forced heirship provisions that protect the spouse and children's right to inherit. The forced portion (legitime) is:

• Spouse — entitled to at least 25% of the estate
• Each child — entitled to at least 25% of their intestate share
• Parents — entitled to forced share if there is no spouse or children

A will cannot completely disinherit a spouse or children. The forced heirship rules apply to Macedonian nationals and residents. Foreign nationals may choose the law of their nationality for succession purposes, subject to certain limitations.

Wills & Probate

A valid will must be in writing and notarised in North Macedonia. Holographic wills (handwritten and signed by the testator) are also recognised. The will should appoint an executor to administer the estate. Probate is the legal process through which the will is verified and the executor is granted authority to distribute assets. The process involves the competent court and typically takes 1-3 months for straightforward estates. Foreign nationals with assets in North Macedonia should have a separate Macedonian will covering their Macedonian assets.

FAQs

Do I need to pay tax on inherited property if I sell it?

Yes, if you sell inherited property, capital gains tax at 10% applies on the gain (selling price minus the deceased's original cost base — no step-up in basis). If the property was your primary residence and you hold it for more than 3 years, the gain is exempt.

Can a foreigner inherit property in North Macedonia?

Yes, foreigners may inherit property in North Macedonia. There are no restrictions on inheriting real estate through succession laws.

Is there a way to avoid gift tax when transferring assets to family?

The annual exemption of MKD 500,000 per recipient can be used for structured transfers. Gifts between spouses are fully exempt. For larger transfers, professional estate planning advice is recommended.

Disclaimer

This guide provides general information about North Macedonian inheritance and gift tax for the 2026 tax year. Succession law is complex. Always consult with a qualified Macedonian lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.