North Macedonia Property Tax Guide 2026

Overview — Property Taxation in North Macedonia

Property taxation in North Macedonia operates at both national and municipal levels. The national government levies a transfer tax on real estate acquisitions (paid by the buyer). Municipalities levy an annual property tax on the assessed value of land and buildings. The Agency for Real Estate Cadastre (Katastar) manages property registration, valuation, and cadastre records. Foreign nationals may acquire property in North Macedonia, subject to certain restrictions on agricultural land. The property market has been growing, with increasing foreign investment in residential and commercial real estate.

Transfer Tax — 2% to 4% (Progressive)

Real estate transfer tax is payable by the buyer on the acquisition of property. The rate is progressive based on the property value:

• 2% — on the portion of property value up to MKD 3,000,000 (approximately EUR 48,800)
• 3% — on the portion of property value between MKD 3,000,000 and MKD 6,000,000
• 4% — on the portion of property value exceeding MKD 6,000,000

The transfer tax is calculated on the higher of the purchase price or the market value as assessed by the tax authority. The tax must be paid within 60 days of the notarised sale contract. Exemptions apply to first-time home buyers (up to a certain value), transfers between spouses and direct relatives, and property acquired through inheritance.

Annual Property Tax — 0.1% to 0.9%

Municipalities levy an annual property tax at progressive rates on the assessed value of real estate:

• 0.1% — on the first MKD 1,000,000 of assessed value
• 0.3% — on the next MKD 4,000,000 (MKD 1,000,001 to MKD 5,000,000)
• 0.5% — on the next MKD 5,000,000 (MKD 5,000,001 to MKD 10,000,000)
• 0.7% — on the next MKD 5,000,000 (MKD 10,000,001 to MKD 15,000,000)
• 0.9% — on value exceeding MKD 15,000,000

The assessed value is determined by the Cadastre and is typically below market value. The annual property tax is paid to the local municipality in quarterly instalments. The effective rate for most residential properties is 0.1-0.3% of assessed value.

Registration Fees & Notarial Costs

In addition to transfer tax, property buyers must pay registration fees to the Cadastre:

• Cadastre registration fee — approximately MKD 1,000-3,000
• Notary fee — approximately 0.5-1% of the property value (regulated by law)
• Property valuation fee — MKD 2,000-5,000 for an official valuation certificate
• Legal fees — typically 1-2% of property value

CGT on Property

Gains from the sale of property are subject to capital gains tax at 10% (as part of ordinary income). The primary residence exemption applies if the property was held for more than 3 years. For investment properties, the gain is always taxable. The gain is calculated as the sale price minus the purchase price (adjusted for inflation and qualifying expenses). The notary is required to report property transactions to the PRO, which assesses any applicable CGT.

FAQs

Can a foreigner buy property in North Macedonia?

Yes, foreign nationals may acquire property in North Macedonia. However, agricultural land may only be acquired by foreigners after 5 years of continuous residence or through a Macedonian company. Building land and residential property can be acquired freely.

How is the assessed value for property tax determined?

The Cadastre determines the assessed value based on location, size, age, and comparable sales. The assessed value is typically 60-80% of market value. Property owners may challenge the assessment.

What are the tax implications of renting property?

Rental income is taxed at the flat 10% rate. Landlords may deduct expenses (maintenance, insurance, property management fees, property tax) from rental income before applying the 10% rate.

Disclaimer

This guide provides general information about North Macedonian property tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Macedonian property lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.