Municipal Tax

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   Hello can any help with some information.
We are building a house in Rache Ohrid Macedonia. We are frm England. The Building conpany is 'HOT HOT' and they are building a wooden construction.

We have been advised that there are two taxes to be paid. 

1.  VAT at 18%

2. Municipal tax

Can anybody tell us how much Municipal Tax is ??????

Thanks 
Steve

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steveraymon Members Profile Send Private Message Find Members Posts Add to Buddy List Newbiе Joined: 24-Feb-2018 Location: England Online Status: Offline Posts: 0	Quote Reply #1 Topic: Municipal Tax Posted: 24-Feb-2018 at 11:15
	Hello can any help with some information. We are building a house in Rache Ohrid Macedonia. We are frm England. The Building conpany is 'HOT HOT' and they are building a wooden construction. We have been advised that there are two taxes to be paid. 1. VAT at 18% 2. Municipal tax Can anybody tell us how much Municipal Tax is ?????? Thanks Steve

Dexter26 Members Profile Send Private Message Find Members Posts Add to Buddy List Senior Member Joined: 19-Nov-2010 Online Status: Offline Posts: 2035	Quote Reply #2 Posted: 24-Feb-2018 at 16:09
	I don't really know what municipality tax can be, I live in Skopje, but I have an apartment in Ohrid, and the only monthly "taxes" that I have to pay towards the municipality are the water bills and the garbage bills. The water bill depends on how much water you have used over the past month, while the garbage bill costs 2.40 Macedonian denars per square meter, depending on the size of the home. The only other tax you would be paying is the property tax, which is also collected by the municipality once a year. I don't remember the tax rate per square meter, but in the case with my apartment in Ohrid, smaller than 50 square meters, the yearly property tax bill is less than 1000 Macedonian denars.

daci92 Members Profile Send Private Message Find Members Posts Add to Buddy List Senior Member Joined: 10-Dec-2012 Location: Skopje Online Status: Offline Posts: 1937	Quote Reply #3 Posted: 24-Feb-2018 at 18:54
	If by municipal tax you mean construction tax that's really depending on the Municipality and they are quite different so you should ask in the municipality, but i think that you wont get construction permit without paying it upfront. If you have appropriate info contact us again and maybe we can help you ,like this we cant, as there is no municipality tax except ownership tax which Dexter mentioned as property tax. For example i pay 1400 denars a year for 80m2 in Skopje.

steveraymon Members Profile Send Private Message Find Members Posts Add to Buddy List Newbiе Joined: 24-Feb-2018 Location: England Online Status: Offline Posts: 0	Quote Reply #4 Posted: 24-Feb-2018 at 21:00
	Thanks for responses ...yes I think we are talking about the Construction Tax and the figure my Girlfriend has got from the Municipality is 73 euros per Square Metre which fo a build area of 267 Sq Mtrs works out to 19,491 Euros which seems very high. The Land is in Raca Ohrid. Can any one confirm that this is a correct amount to pay ???

Staro Skopje Members Profile Send Private Message Find Members Posts Add to Buddy List Senior Member Joined: 07-May-2013 Location: Skopje Online Status: Offline Posts: 2692	Quote Reply #5 Posted: 24-Feb-2018 at 22:35
	According to an article published by pravdiko.mk on 20.11.2013 (so have in mind that things might have changed), there are four groups of fees that need to be paid. The article is too large so I can't be bothered to translate it, you can do it by Google translate or a licensed translator, but here are the four groups: 1) Administrative fees for the procedure run by the local government (municipality); 2) Non-administrative (other) fees connected to 1); 3) Administrative fees connected to issuing necessary documents by the cadastre, and 4) Fees connected to the preparation of technical documentation and it's revision. Edited by Staro Skopje - 24-Feb-2018 at 22:36
	Градот убав никна, но го откорнаа

steveraymon Members Profile Send Private Message Find Members Posts Add to Buddy List Newbiе Joined: 24-Feb-2018 Location: England Online Status: Offline Posts: 0	Quote Reply #6 Posted: 25-Feb-2018 at 10:14
	so Staro Skopje, does this mean we shoud not be paying a Construction Tax of 20,000 Euros ???

Џоле Members Profile Send Private Message Find Members Posts Add to Buddy List Moderator Group Joined: 23-Apr-2013 Location: Скопје Online Status: Offline Posts: 15368	Quote Reply #7 Posted: 25-Feb-2018 at 13:13
	The amount of money seems way to high. You should check that with some lawyer that is more informed about that issue.
	За сè има вторпат

daci92 Members Profile Send Private Message Find Members Posts Add to Buddy List Senior Member Joined: 10-Dec-2012 Location: Skopje Online Status: Offline Posts: 1937	Quote Reply #8 Posted: 25-Feb-2018 at 15:08
	The amount of money is fair. In Skopje most of the municipalities have about 100+ euros per sqm so 73 euros is not really high price. Have in mind that the tax is not fixed, instead its different for every project because it is calculated in few points. I researched a bit so i found and info that Raca became part of the first zone with the change of the construction plan and law in Ohrid back in 2010. In 2009 the taxes were from 21 up to 170 euros (1280- 10850 denars) per sqm which depended from zone and building. In 2010 they rose 30% if i'm not wrong. There is a document that explains this but i couldnt find it in English. http://www.ohrid.gov.mk/Formulari/MinisterstvoZaUrbanizam/Urbanizam/Letok8-TROSKOVNIK.pdf

pbanks Members Profile Send Private Message Find Members Posts Add to Buddy List Admin Group Joined: 01-Sep-2007 Location: Skopje Online Status: Offline Posts: 9141	Quote Reply #9 Posted: 26-Feb-2018 at 16:20
	Correct answer. Unfortunately steve, you won't be able to avoid those taxes, nicknamed "komunalii". Having them payed will be one of the key elements to legalize the object and get an ownership document from the Cadastre, once you complete it. I don't know which part of Raca are you building in, but I agree with you it does look a bit steep. However, not that far from the average as Daci explained.