By offering preferential tax regimes, bilateral double-taxation agreements, multilateral trade agreements, and a cheap and skilled labor force, the Republic of North Macedonia has created a business-friendly environment. North Macedonia has worked to liberalize foreign trade through its five trade agreements, including EFTA, CEFTA, and the SAA (Stabilization and Association Agreement) with EU member states, Turkey, and Ukraine. It has inked investment protection and double taxation avoidance accords with several European nations.
On April 1, 2004, the EU and the Republic of North Macedonia signed a stabilization and association agreement. It ensures that national laws are in line with EU laws and that the business and investment climate is becoming more identifiable and predictable for outside investors. The SAA entered the second stage of the application process in 2019, and North Macedonia is awaiting word on when the accession talks to the EU will begin this year. The international dispute, which had been raging for several decades, was finally resolved when the country signed an agreement in June 2018 to settle its differences with neighboring Greece. As a result, the name of the nation was changed to North Macedonia.
Tax incentives
In contrast to North Macedonia, where the corporate tax rate is 10% and the value-added tax (VAT) is 18%. Tax incentives are available for investment projects of significant economic interest to North Macedonia such as;
- The creation of new jobs
- The establishment and improvement of local supplier relationships
- The establishment of technological development and research departments
- The growth of capital investments and income, and
- The acquisition of struggling businesses.
In addition, there are tax breaks for investments in technological industrial development zones (TIDZs), and the nation has agreements with 49 other nations to prevent double taxation.
Special economic zones
In North Macedonia, there are now 8 operational free economic zones, the bulk of which are run by the government (the exception being one PPP in Tetovo). 21 foreign and 2 domestic firms are located in the zones. In 2014, these zones generated 31% of all exports.
Benefits of opening your business here
Macedonia is not simply another picturesque country in the Balkan Peninsula. The landlocked nation offers small and medium company initiatives a promising future as well. Here are some characteristics that demonstrate why starting a business in Macedonia is a wise choice for businesspeople.
Reformed economy – a good time to set up business in Macedonia
Although it was a gradual process, the Macedonian government implemented policies to ensure that the country’s economy could be restructured. Out of 178 nations, the nation was recently regarded as the fourth-best reformatory state. Macedonia also has political stability and a good standard of living, both of which are reflected in its macroeconomic stability. Along with making Macedonia’s economy more open, the business-friendly administration aggressively seeks out international investment. Since more businesses may be established and more jobs can be created for residents, Macedonia invites entrepreneurs interested in starting small and commercial enterprises.
Location is key
This country is ideally situated for commercial growth. Since it is an EU candidate, doing business with other EU members is simple. Up to 650 million clients, all located in Europe, will be accessible to business owners that want to establish operations here. The free trade agreements Macedonia has signed with the majority of the European nations are to blame for all of these. An entrepreneur should seriously consider taking advantage of this chance to grow or establish a new firm in Macedonia.
