World renowned reformer recognized by its excellent business climate

Business environment 16.11.2017



With the recent economic reforms, Macedonia has created the most attractive tax package in Europe. These reforms include introduction of flat tax rate of 10% for corporate and personal income, which simplify the tax system and stimulate successful companies to further improve operations and increase profitability.


Tax Rate

Corporate Income Tax


Personal Income Tax


Value Added Tax

General Tax Rate: 18%

*Preferential Tax Rate: 5%

Property Tax

0.1% - 0.2%

Inheritance and Gift Tax

**2 - 3% or 4 - 5%

Sales Tax on Real Estate and Rights

2 - 4%


* includes computer software and hardware

** 2-3% for the taxpayer in the 2nd order of succession and 4-5% for the taxpayer in the 3rd order of succession or not related to the testator


Macedonia is a signatory of three multilateral Free Trade Agreements:

In addition to the multilateral, Macedonia has also signed two bilateral Free Trade Agreements with the following countries:

  • Bilateral Free Trade Agreement with Turkey

  • Bilateral Free Trade Agreement with Ukraine

 These agreements give Macedonia duty free access to more than 650 million consumers.

 Macedonia has also been a member of the World Trade Organization (WTO) since 2003.


According to the Company Law, all legal entities are obliged to prepare annual accounts at the end of each calendar year. Annual accounts have to be prepared in accordance with local accounting rules. Listed companies, large and medium-sized entities are also obliged to prepare and submit financial statements prepared in accordance with IFRS. Macedonian audit laws stipulate that audit activities are to be performed pursuant to International Standards on Auditing.

The Audit Law defines the conditions under which an entity performing its activities and having a main office in the Republic of Macedonia is obliged to submit financial and accounting statements for a statutory audit: more than 50 employees, and/or turnover and total assets exceeding € 2 million.

The Audit Law requires that an audit be performed by an Audit company registered with the Central Register or by a certified auditor who operates as a sole proprietor in accordance with the Company Law. The Audit Law also enables businesses to undergo voluntary audits.

The Institute of Authorized Auditors issues the license for operating as an Audit company or certified auditor, in accordance with the Audit Law.


The Republic of Macedonia has signed investment protection treaties with the following countries:

Albania, Austria, Belgium, Bosnia, Bulgaria, China, Croatia, Czech Republic, People's Republic of Korea, Finland, France, Germany, Hungary, India, Italy, Malaysia, Netherlands, Poland, Romania, Russia, Serbia, Slovenia, Spain, Sweden, Switzerland, Turkey and Ukraine.

 The Republic of Macedonia has signed agreements for avoidance of double taxation with the following countries:

Austria, Albania, Belgium *, Belarus, Bulgaria, Tues Britain, Germany, Denmark, Egypt, Estonia, Iran, Ireland, Italy, Qatar, China, Kosovo, Kuwait, Latvia, Lithuania, Morocco, Moldova, Norway, Poland, Romania, Russia, Slovakia, Slovenia,  Taiwan, Turkey, Ukraine, Hungary, Finland, France, Netherlands, Croatia, Czech, Switzerland, Sweden, Spain, Serbia, Montenegro.

 For more information please visit Ministry of Finance’s website.


Domestic sources of the Macedonian Arbitrary Law include the Constitution of the Republic of Macedonia, the Litigation Procedure Law (Official Paper of SFRY, No. 4/77), the Law on Disputes Settlement (Official Paper of SFRY, No. 43/82),   Law on International Trade Arbitrary (Official Paper of RM  No. 39/06) and the Macedonian Company Law. Arbitration exists within the Chamber of Commerce since 1993 with a permanent elected court.

The international sources of the Macedonian Arbitrary Law include bilateral and multilateral conventions, which Macedonia has signed or inherited from former Yugoslavia on the basis of succession. The Republic of Macedonia is a party to the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards as well as the Geneva Convention on Execution of Foreign Arbitral Awards. Macedonia is also a party to the Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States and the European Convention on International Commercial Arbitration. By virtue of the Macedonian Law, ratified international agreements have preference over domestic legislation.

For more information please visit Ministry of Foreign Affairs' website.