When you sell real estate in North Macedonia for more than you paid for it, the profit is subject to capital gains tax. Understanding the 10% rate, the key exemptions, and the reporting deadlines is essential before completing any property transaction. This page is part of our practice in real estate and construction law. For related questions on buying property as a foreign national, see our guide on property ownership in North Macedonia.

What is a capital gain on the sale of real estate?

Capital gain represents the income realized from the sale of real estate — the difference between the sale price and the purchase price of the property. If the sale price exceeds the purchase price, you realize a capital gain. In the tax law of the Republic of North Macedonia, the sale price refers to the agreed-upon sale price, while the purchase price is the price at which the owner acquired the property.

If the difference is negative, a capital loss is realized. A capital loss does not generate a tax liability.

How is capital gain calculated when selling real estate?

To calculate the capital gain, subtract the purchase price from the sale price of the real estate. In the case of inheritance or gift, the purchase price is the price at which the property was acquired by the previous owner. If the property was built by you, the purchase price refers to the costs of its construction.

Tax treatment of capital gains on the sale of real estate

The capital gain tax on the sale of real estate in North Macedonia is 10%. However, there are certain conditions under which you can be exempt from paying capital gains tax. For example, if you lived in the property for at least one year before the sale and you are selling it after three years of acquisition.

Registration and payment of the tax

Owners who realize a capital gain from the sale of real estate are obliged to report this gain to the Public Revenue Administration. Registration is done through the electronic system by submitting the necessary evidence through the e-Tax Services system. The deadline for submitting the application and evidence is the 10th of the month following the month in which the purchase and sale agreement was notarized.

Taxation of different scenarios

Taxation scenarios can vary depending on the duration of ownership and the use of the property. If the owner lived in the property and sells it after five years of acquisition, the capital gain is not taxable. Also, if the income is realized from the sale of real estate acquired through denationalization or inheritance from the first line of succession, no capital gains tax is paid.

Exceptions and Exemptions

There are certain exceptions where owners can be exempt from paying capital gains tax. For example, the sale of property directly related to a divorce, and sales made between spouses, may be exempt from taxation.

A capital gain from the sale of real estate is a significant financial item that requires careful planning and an understanding of the tax implications. In North Macedonia, a 10% capital gains tax rate applies, but with many conditions and exceptions that can significantly affect your tax burden. It is important to inform yourself and submit appropriate tax returns within the deadlines to avoid possible penalties and to take advantage of legally provided reliefs.

Capital gains are a key element in real estate financial management, and with proper planning and tax advice, can bring significant financial benefits and savings.

Read more about the taxation of capital gains on the sale of real estate at the following link.

2026 Practical Checklist

Before selling real estate in North Macedonia, verify the following: (1) Calculate your capital gain – sale price minus purchase price (or construction costs if self-built). For inherited/gifted property, the purchase price of the previous owner applies. (2) Check if you qualify for an exemption – key exemptions include: ownership of 5+ years with personal residence; property acquired through denationalization; inheritance from first line of succession (parents, children, spouse); and sales between spouses or related to divorce. (3) Report by the 10th of the following month – the deadline runs from the month in which the sale agreement was notarized. Missing this deadline may result in penalties. (4) Use the e-Tax Services system – registration and submission of evidence is done electronically through the Public Revenue Administration’s e-Tax portal. (5) 10% rate applies if no exemption – if none of the exemptions apply, capital gains tax of 10% of the net gain is due. For complex situations or to verify your eligibility for an exemption, consult our real estate lawyers.

Frequently Asked Questions

What is the capital gains tax rate in North Macedonia?

The standard rate is 10% of the net capital gain (sale price minus purchase price). Several exemptions apply depending on ownership duration, property use and how the property was acquired.

Am I exempt if I lived in the property before selling?

Yes, under certain conditions. If you lived in the property and sell it after five years of ownership, the capital gain is not taxable. A partial exemption may also apply if you lived there for at least one year and sell after three years.

Do I pay capital gains tax on inherited property?

No, if the property was inherited from a first-line relative (parent, child, or spouse). Also, property acquired through denationalization is exempt from capital gains tax on sale.

When is the deadline to report a capital gain?

You must report the capital gain to the Public Revenue Administration by the 10th day of the month following the month in which the purchase and sale agreement was notarised. The submission is made electronically through the e-Tax Services system.

Is the sale of property between spouses taxable?

Sales between spouses or sales directly related to a divorce may be exempt from capital gains tax. The specific circumstances should be reviewed on a case-by-case basis.

Need legal guidance?

If you have questions about capital gains tax on real estate in North Macedonia, the team at Lalicic & Partners is at your disposal. Contact us through our website.