Legal entities and natural persons can invest in real estate and securities abroad with the transition of the country to the second phase of the Stabilization and Association Agreement (SAA).
The transition to the second phase of the SAA provides not only greater investment opportunities for both natural persons and legal entities, but also a greater degree of integration of the domestic financial market with the international financial markets. Also, the transition facilitates the issuance and the registration of foreign securities in the country, as well as of domestic securities abroad.
Investing in foreign financial markets should be based on numerous information underlying the expectations of economic agents in which the investment is planned. Hence, residents, and especially natural persons who will decide to invest abroad, are assumed to be well-informed about the potential effects of their decisions, that they have established clear expectations about the yields and the level of risk, and that they are familiar with their tax liabilities.
Residents should take into account and observe any obligations arising from the Law on Foreign Exchange Operations relating to registration of and reporting on transactions. The ban on opening accounts of legal entities and natural persons in foreign banks is still in force, except in the cases provided for with the Decision on the manner and the terms under which residents that are not authorized banks may open and hold accounts abroad.
The signing of the SAA obliged our country to observe one of the basic principles underlying the single market of the European Union - the free movement of capital, which implies full, but phase liberalization of the flows from the capital and financial account. Most of the capital transactions, such as credit operations, foreign direct investments, investments of non-residents in securities and in real estate, were previously liberalized. The accession to the second phase of the SAA means further liberalization of capital flows.
On 25 January 2019, the Decision on the transition to the second phase of the association between the Republic of Macedonia and the European Community and its member states (Official Gazette of the Republic of Macedonia No. 17/19) was published. This novelty, according to the Stabilization and Association Agreement, will supersede 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 the Law on Foreign Exchange Operations which so far limited the investment opportunities of the domestic natural persons and legal entities abroad.
At the same time, the National Bank of the Republic of Macedonia Council, on 31 January this year, adopted the Decision repealing the Decision on requirements for securities in which an authorized bank may invest abroad. This Decision was adopted in order to further liberalize the flows from the capital and financial account.
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