This Law establishes the legal framework for the taxation of property in the Republic of North Macedonia. It regulates three main types of property taxes: (i) property tax on immovable property, (ii) inheritance and gift tax on movable and immovable property, and (iii) tax on the transfer of real estate. The Law defines key concepts such as immovable property, co-ownership, usufruct, market value, and the registers of movable and immovable property maintained by municipalities. It allocates tax competences to municipalities in line with the system of local self-government.
For property tax, the Law sets the taxable object (immovable property), identifies taxpayers (owners, users, usufructuaries, and users of state and municipal property), and defines the tax base as the market value determined according to a specific methodology. It lists extensive exemptions, including state and municipal property used by public bodies, diplomatic premises (on reciprocity), religious buildings, cultural heritage, environmental protection facilities, certain facilities for disabled persons, mining land, and specified agricultural and farm-related buildings and land. It also grants a 50% reduction for the taxpayer’s primary dwelling.
For inheritance and gift tax, the Law defines taxable property (immovable, usufruct rights, cash, claims, securities and other movable property above a threshold), taxpayers (residents and non-residents), and the tax base (market value minus debts and costs). For tax on the transfer of real estate, the Law defines taxable transactions as transfers of ownership, including exchanges and transfers based on court or administrative decisions, and identifies the seller as the default taxpayer, with exceptions.
The Law details procedures for assessment and collection of all three taxes, including filing deadlines for tax returns, issuance of tax decisions by mayors, payment deadlines, and the possibility of a special notary-based procedure for transfer tax with advance payment and electronic transmission of documentation. It regulates the keeping and annual updating of municipal registers of movable and immovable property and their transmission to the Central Register and Public Revenue Office. Finally, it assigns supervisory powers to the Ministry of Finance and the Public Revenue Office, provides for municipal inspection, and sets out administrative and misdemeanour sanctions for taxpayers, officials and payment service providers.