The Decision on transition to the second stage of the Agreement on Stabilization and Association between the Republic of North Macedonia and the European Union and its member was adopted оn December 4, 2018 and it was published by the Ministry of Foreign Affairs in the Official Gazette No. 17/19 from January 25, 2019.
According to Article 59 of the Law on Foreign Exchange Operations: “Upon the expiry of the first stage of the Stabilization and Association Agreement between the Republic of Macedonia and the European Union, the provisions of Article 11 paragraph 1, Article 13 paragraph 2, Article 14 paragraphs 4, 5, 6 and 7, and Article 15 paragraph 3 of this Law shall cease to be valid”; which means that with the transition to the second stage, the Republic of North Macedonia’s residents can already invest or buy real estate abroad and can buy or register, pay and trade with securities abroad.
According to Law on Foreign Exchange Operations, residents shall mean:
1) trade companies, sole proprietors and other legal entities with a registered office in the Republic of Macedonia and their branch offices abroad, except for their subsidiaries abroad;
2) subsidiaries of foreign companies registered in a trade registry in the Republic of Macedonia;
3) subsidiaries of foreign banks;
4) natural persons who independently perform an activity as an occupation, with a permanent place of residence in the Republic of Macedonia who are not deemed sole proprietors pursuant to the Law on Trade Companies;
5) natural persons with a permanent place of residence in the Republic of Macedonia and persons who temporarily stay abroad with a valid residence or work permit, during their stay abroad;
6) natural persons temporarily staying in the Republic of Macedonia on the basis of a valid temporary resident visa, that is, work visa, with a validity of at least six months; and
7) diplomatic, consular and other missions of the Republic of Macedonia abroad, financed from the Budget of the Republic of Macedonia, as well as the employees in such missions and the members of their immediate families.
What is also important to note is that residents who have invested funds for acquiring ownership of real estate abroad are obliged to report the investment and all further changes within 60 days from the day of the occurrence of the legal basis for acquiring the real estate of the investment in the Central Registry.
Furthermore, the registration, payment and trading in securities abroad, the residents may register, pay and trade in securities abroad only via brokerage houses and banks or via an authorized participant on a foreign stock exchange or an organized securities market. The authorized participant shall be obliged to regularly submit reports to the National Bank of the Republic of Macedonia on all the investments of residents in securities abroad, as well as any modifications in these investments, including their disposal and if the resident registers, pays or trades in securities abroad via an authorized participant in a foreign stock exchange or an organized securities market, he/she shall be obliged to submit the report to the National Bank of the Republic of Macedonia.
We point out that the prohibition of opening accounts to residents of the Republic of North Macedonia in foreign banks remains in force, except in cases provided for by the Decision on the manner and conditions under which residents which are not authorized banks may open and hold accounts abroad, which can be found on the following page: http://nbrm.mk/ns-newsarticle-odluka-za-nacinot-i-uslovite-pod-koi-rezidentite-koisto-ne-se-ovlasteni-banki-mozat-da -otvoraat-i-da-imat-smetki-vo-stranstvo.nspx.
If you need any further information and advice regarding the published, please feel free to contact us here.
Source of the published regulations: www.slvesnik.com.mk