North Macedonia Investment Incentives

North Macedonia

Investment Incentives

20.05.2025

Free Zone Investments

• Machinery Investments:

  • Free Zone: If machinery investment is up to 15 million EUR, space is provided in the free zone.

  • Rent is extremely low, to the point of being negligible as an expense.

• Free Zone Land and Construction Support:

  • If land is requested, 35% of the construction cost is covered by the state.

  • Infrastructure is provided free of charge.

• Municipal Permit:

  • Municipal permits are free and exempt from fees.

• Worker Subsidies:

  • The state provides a subsidy of up to 20% of salaries based on the declared number of workers (maximum 4,400 EUR annually per worker).

  • Example: For a 500 EUR salary, 20%—meaning 100 EUR—is subsidized.

  • For salaries of 1,800 EUR and below, 20% is paid monthly.

  • For salaries exceeding 1,800 EUR, a fixed monthly payment of 360 EUR is provided.

• Investment Support:

  • The state refunds 30% of the initial investment.

  • After the investment is made, the end-of-year preliminary trial balance is submitted and approved by the tax authority.

  • Following approval, 10% is paid in the subsequent month, and 20% in the following month.

• Operational Commitment:

  • Mandatory period of operation: 5 years.

• Worker Salaries and Income Tax:

  • 20% of worker salaries are subsidized for 5 years.

  • Individual earnings of both the company and the company owners are exempt from income tax for 10 years.

Investments Outside the Free Zone

• Investment Conditions:

  • The conditions above apply to investments made outside the free zone.

  • However, since land is not provided, 20% of the rent for the leased property is paid by the state for 5 years.

  • In this case, the lease agreement must be for 10 years.

• Operational Commitment:

  • Mandatory period of operation: 5 years.

• Income Tax Refund:

  • For investments made outside the free zone, income tax is refunded at the end of the year.

  • If the annual turnover exceeds 3 million EUR, paid income tax is refunded, and this process continues for 10 years.

Differences

• Outside the free zone, income tax is refunded after payment.

• The 3 million EUR turnover requirement applies strictly to investments made outside the free zone.

For more information: www.baerinvest.com / contact(add)baerinvest.com / Barış Yurttutan