Real Estate Ownership by Foreign Investors in North Macedonia in 2025

Every country determines the ownership of real estate differently. North Macedonia has emerged as a promising market for real estate investment, offering opportunities to both foreign individuals and companies. In 2025, the country’s legal framework remains investor-friendly, particularly for those coming from the EU, OECD countries, and nations with bilateral reciprocity agreements.

The right of ownership over real estate (RE) is guaranteed in the Constitution of the Republic of North Macedonia. Additionally, the rights regarding RE are regulated in the following laws: Law on Ownership and Other Real Estate Rights; Law on Construction Land; Law on International Private Law; Law on Cadastre of Immovable Assets; Law on Obligations.

In accordance with the Law on ownership and other real rights foreign investors can acquire residential, commercial, and industrial properties under nearly the same conditions as local citizens. This openness has led to increasing interest, especially from EU and OECD nationals looking to expand their portfolios in a growing economy. However, it’s important to note that while ownership of residential and commercial property is straightforward, purchasing agricultural land remains restricted. Investors should also be aware of specific nuances in land ownership laws. While foreign companies are eligible for ownership of land used for business purposes, agricultural land is still reserved for domestic citizens unless specific conditions are met.

The process of acquiring property in North Macedonia involves several stages, including property registration and due diligence checks. For investors, the acquisition can be done as a share deal or an asset deal. While the latter manages as a direct asset deal between the seller and buyer, the share deal means the acquisition of the owner company of the RE with all its liabilities toward any third party. This acquisition of the RE as an asset deal will be subject to property transfer tax (from 2% to 4% percent of the value of the RE) and such tax is not applicable at share deal. After concluding the contract for sale and purchase, the contract is submitted to the municipality for clearance of the property transfer tax. Once the property transfer tax will be paid, the contract for sale and purchase is notarized by a notary public and the notary submits the application for registration of the change in the real estate cadaster after which the purchased will be registered as the owner of the RE and the transaction will be considered as closed.

North Macedonia’s transparent property laws and efficient registration systems are key factors contributing to the country’s real estate appeal. Furthermore, the recent legislative updates have streamlined the legal processes, making the market even more attractive to investors seeking stability and growth opportunities. Additionally, North Macedonia’s real estate sector is undergoing rapid development, particularly in urban areas like Skopje, where commercial spaces and residential developments are booming. With favorable tax laws, competitive property prices, and an emerging market, North Macedonia is expected to continue being a top choice for investors in 2025 and beyond.

In conclusion, North Macedonia's real estate market presents significant opportunities for foreign investors in 2025. Investors should also be aware of specific nuances in land ownership laws. While foreign companies are eligible for ownership of land used for business purposes, agricultural land is still reserved for domestic citizens unless specific conditions are met. With its favorable regulatory environment, growing urban development, and increasing foreign interest, it remains a promising destination for investment. However, potential investors should ensure they understand the local laws and work closely with legal advisors to navigate any complexities, especially when it comes to specific land use categories.