As a result of a growing interest in Macedonia’s investment potential, a number of international companies have started operations in the country, both as green-field projects and through different types of asset acquisition and privatization. Some of the significant foreign investors include Johnson Matthey (UK), Mobilkom Austria (Austria), EVN (Austria), Deutsche Telecom (Germany), Kromberg & Schubert (Germany), Dräxlmaier Group (Germany), Van Hool (Belgium), Societe Generale (France), Johnson Controls (USA), KEMET Corporation (USA), the National Bank of Greece (Greece), Hellenic Bottling Company S.A. (Greece), QBE Insurance Group Limited (United Kingdom), Mittal Steel (Netherlands), Duferco (Switzerland), and Titan Group (Greece).
According to data from the National Bank of the Republic of Macedonia, net foreign direct investment in the country in 2016 was 390.6 million USD compared to 230.3 million USD in 2015 and 261.4 million USD in 2014.
Free Market Access
Duty – free access to a market of over 650 million customers through three multilateral: SAA (Stabilization and Association Agreement), EFTA (Switzerland, Norway, Iceland and Liechtenstein) and CEFTA (Macedonia, Albania, Moldova, Croatia, Serbia, Montenegro, Bosnia and Herzegovina and Kosovo) and two bilateral (Turkey and Ukraine) Free Trade Agreement. Macedonia has been a member of the World Trade Organization (WTO) since 2003.
The Authorities introduced a flat tax of 10% for corporate and personal income. The range of tax incentives in Macedonia includes exemption from customs duties, various tax holidays and specific tax relief measures.
Tax paid abroad: Resident taxpayers have the right to credit tax paid abroad in accordance with the provisions of the respective DDTs up to the tax determined by applying the domestic tax rate of 10%.
VAT: generally, VAT is due on the supply of goods and services in the country sold/carried out from the taxpayer in the course of his economic activities. “Supply” refers to goods or services provided in exchange for consideration. However, certain transactions carried out for no consideration are also considered to be supplies, for example, private use of business assets.
The following transactions are generally subject to Macedonian VAT:
- Supplies of goods or services whose place of supply is in Macedonia and
- Import of goods into Macedonia.
Goods exported from Macedonia, as well as services related to the export (e.g. international transportation) are zero rated (exempt from Macedonian VAT with the right to input VAT credit for purchases related to export), subject to specific documentation requirements.
Excellent Geo – Strategic Position
Goods delivered within a day to Central and Eastern Europe and Turkey, and maximum two days to Western Europe.
Fast Company Registration
The country has introduced One-Stop-Shop system for company registration within 4 hours.