The Law on Property and Other Real Rights and the Law on Obligations and Contracts govern commercial real estate law in North Macedonia. These rules govern the purchase, selling, and leasing of commercial properties, as well as the establishment of property ownership and the resolution of disputes. If you are thinking about beginning a commercial real estate business in this country, you will be entering a rapidly expanding market. Construction projects have recently increased in the country, with the government aggressively encouraging foreign investment in this business. Nevertheless, before you get into this industry, there are a few things you should know.
Investigate the market
The first step in launching any business is to properly research the market. You must understand what types of commercial properties are in demand, current pricing trends, and the level of competition you will encounter. To gain a detailed view of the market, speak with real estate brokers, bankers, and other specialists in the field.
Make a business plan.
It’s time to write a business strategy after you’ve gained a thorough understanding of the market. This should include your objectives, target market, marketing and sales strategies, budgetary predictions, and staffing requirements. Consider any legal and regulatory restrictions that may apply to commercial real estate enterprises in this country.
Register your company
To run this firm in North Macedonia, you must first register with the Agency for Business Registers. You will be required to provide papers such as your business strategy, articles of incorporation, and identification documents. The Public Revenue Service will also require you to obtain a tax identification number.
Ensured funding
To start this firm, you need substantial capital, so you will need to get funding from banks or other sources. Prepare to provide a detailed business plan and financial predictions to lenders to convince them of your company’s viability.
Locate the ideal properties
Finding the ideal properties to invest in will be critical to the success of your firm. Search for properties that are in great demand, have a high potential for appreciation, and are accessible and appealing places for tenants. Make sure to do comprehensive due research on any homes you are thinking about buying.
Create a network
Having a solid network of contacts in the real estate sector is critical to success. Attend industry events, join associations, and network with other industry experts to remain current on industry news and trends. You may also want to consider assembling a team of specialists, such as lawyers, accountants, and agents, to assist you in navigating the market’s complexity.
Create a marketing strategy
You will need to build a solid marketing plan to attract tenants and buyers for your properties. A quality website, social media presence, and targeted advertising efforts should all be included. To differentiate yourself from the competition, emphasize the unique qualities and benefits of your homes.
Taxes
Commercial real estate is subject to many taxes, including property taxes, value-added tax (VAT), and income tax. Property taxes are imposed on the market value of the property every year and are paid by the property owner. The tax rate varies according to geography and property type. Furthermore, properties utilized for commercial purposes may be subject to a surtax in addition to the standard property tax. VAT is a value-added tax levied on a product or service at each stage of manufacturing or delivery. VAT is levied at a standard rate of 18% on the sale or lease of commercial real estate in North Macedonia. However, certain commercial assets, such as hotels and lodging facilities, are subject to a 5% VAT charge. Lastly, profits from these investments are subject to income tax. North Macedonia’s basic income tax rate is 10%, although non-resident investors may be subject to a higher rate of 15% on rental income.
