The Republic of North Macedonia is a landlocked country located in southeast Europe. The country itself holds a strategic position, by being located in the crossroad of two European transport corridors that connect Central Europe to the Adriatic, Aegean and the Black Sea.
Over the last couple of years, North Macedonia has experienced the most stable growth rates in the Western Balkans. The market-oriented reforms and proper macroeconomic management have enabled the country to move from a low-middle to upper-middle-income country. Also, the country’s stable monetary environment and low inflation rate have created a supportive environment for attracting foreign investments and increasing exports.
The labor market in North Macedonia offers highly qualified people at some of the most competitive wages in the region with a net salary of 450 Euro and a fixed income tax of 10%. In addition to competitiveness in terms of wages, North Macedonia has a very young population with around half of the population being under 30 years old. Undoubtedly, North Macedonia has a lot of untapped potential.
North Macedonia also has a well-established tax system with one of the lowest corporate tax rates in the region (10%) and a value added tax of 18%. The country has established several business and investment zones, each providing incentives for foreign investors. Additionally, to ease the company registration process for foreign investors, North Macedonia has established one-stop shops across the country as well as the online business registration that enable the company registration within 4 hours.
North Macedonia has a very liberal trade regime with several trade agreements with European and regional countries in place. The country is part of the CEFTA agreement signed between Bosnia and Herzegovina, Croatia, Kosovo, Moldova, Montenegro, Albania, and Serbia aiming at promoting investments, expanding trade of goods and services and eliminating trade barriers.
North Macedonia has done many reforms in improving its infrastructure for attracting foreign investors and boosting its economic activity. A detailed snapshot of North Macedonia’s current business infrastructure and environment is provided in the brochure “Investing in North Macedonia”.