North Macedonia

Further Liberalization of Capital Flows and Investment Opportunities Abroad

By signing the Stabilization and Association Agreement with the European Communities and their Member States (“SAA”), the Republic of North Macedonia committed itself to the free movement of capital, one of the basic principles upon which the European Single Market is based. This principle implies phase liberalization of capital flows.

The transition into the second phase of the SAA, the decision for which was published in the “Official Gazette of the Republic of North Macedonia” on 25 January 2019, means further liberalization of capital flows. Also, it provides for a higher degree of integration of the domestic financial market with international financial markets.

With the transition into the second phase of the SAA, legal entities and natural persons can invest in real estate and securities abroad, broadening their investment opportunities. Additionally, the transition advances the issuance and registration of foreign securities in the country, as well as of domestic securities abroad. It is of great importance for foreign exchange operations, the appraisal and supervision of insurance.

The prohibition against issuing and registering foreign debt securities in North Macedonia with maturity of over three years no longer stands. On the other hand, the ban for legal entities and natural persons to open accounts in foreign banks is still in force, except in cases envisaged with a Decision of the National Bank of the Republic of North Macedonia.

The novelty concerning the Law on Appraisal is that a foreign appraiser, or foreign professional institutions from EU member states that meet the requirements in the state in which they are registered, can also perform appraisals in North Macedonia. Changes are also introduced with the Law on Insurance Supervision, especially with regard to investing an insurance company’s capital.



The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.