The Republic of North Macedonia has one of the most business friendly environment in Europe, as it is confirmed its ranking on the 17th place in 2020 Doing Business Report of the World Bank. This fact, combined with its location, stability, security and skilled and efficient workforce make it one of the top investment destinations in Europe.

The flag of the Republic of North Macedonia

Location & context

The country is located in south-eastern Europe, sitting on the strategic railway and highway corridors linking Istanbul and the Greek ports with Central Europe. This allows a simple and efficient importation of raw resources and other manufacturing components, as well as simple and efficient ways to export goods to the global markets. The location has additional benefits, such as fast and cheap access to the key EU capitals (less than two hours’ flight) and to the Greek Aegean riviera (two hours’ drive).

The country is a democratic and peaceful NATO member, with the expectations that it will become an EU member in the next 5-10 years. It enjoys a high level of freedom and democracy, with exceptionally low levels of crime. In addition, the country has a developed level of public and private school institutions at all levels of education. Finally, the country offers a fairly well network of public health institutions and top brass and affordable private health providers. The relatively well educated but not expensive workforce (average net salary of EUR 450) make it very attractive for various manufacturing and services industries.

Investment Vehicle Options

The corporate framework of the state is very inviting to foreign investors and there are no general permits or restrictions on making foreign investments in the Republic of North Macedonia. The country provides a strong level of foreign investor protection and has ratified more than 40 Bilateral Investment Treaties (BITs). Additionally, there are no currency restrictions and limitations or hurdles for the repatriation of capital. Furthermore, the management may be foreign, with special fast-track residency procedure.

Investors can choose one of many business vehicles to establish presence in the state. They could simply conduct their business by establishing a representative office or branch office in Macedonia. On the other hand, if an investor decides to establish a company in Macedonia, the investor can choose between the following types of companies: i) Limited Liability Company; ii) Joint-stock Company; or iii) Kommanditgesellschaft. Read more about details on the types of companies in the Republic of North Macedonia. The Republic of North Macedonia boasts one of the best trade registries in the world with the time for establishing a company being one day.

Unless in some strictly regulated area, the management does not need to be employed in the company or reside in the state. However, managers and shareholders who wish to move to the Republic of North Macedonia, can benefit from the “investor-track residence procedure”, whereby the residence is acquired within 30 days as of the application. Read more about residence and citizenship in the Republic of North Macedonia.

Tax system

The Republic of North Macedonia has one of the lowest taxation rates in Europe. This low tax rate environment is made even more attractive because the simple tax reporting and payment system that our country established during its tax reform in the late 2010s.

Our country takes pride in its flat 10% tax rate for both personal income tax and corporate tax. In addition, to these attractive tax rates our state has signed around 50 agreements for avoiding double taxation (DTAs) with various states, among which are most of the Balkan and European states, India, Iran, Kazakhstan, China, Russia, Turkey, etc.  

In regard to VAT, the general taxation rate is 18%, with special tax rate of 5% for certain strategic products and industries, such as software, hospitality industry, medicine, agricultural mechanization etc.

Real-estate taxes are paid on real estate transactions, where the tax on real estate transactions is between 2% and 4% depending on the municipality where the property is based. Also, there is a low tax on property ownership where the yearly tax rate is between 0.20% and 0.40% depending on the municipality where the property is located.

Business Fields

The Republic of North Macedonia offer various investment possibilities in different business sectors, such as: real estate development, construction, finance, healthcare, IT, industry etc.

Our office can provide legal assistance to potential investors at any point of the investment between market-entry and market-exit. Investors can especially rely on us about matter such as: i) research of legal frameworks; ii) establishment of corporate presence; iii) licensing procedures; iv) labor issues; v) contracts and negotiations; vi) residence and work permits; and vii) debt collection and dispute resolution.

We hope that this short text will be helpful when deciding whether to invest in our country.

For more information check out our articles on tax, residency and other business services, write to us ( or call us (+38970257879).

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