flag North Macedonia North Macedonia: Investing

In this page: FDI in Figures | What to consider if you invest in North Macedonia | Procedures Relative to Foreign Investment | Investment Opportunities


FDI in Figures

In the absence of adequate domestic savings, foreign investments provide an important avenue for the development of North Macedonia’s economy. According to UNCTAD's 2022 World Investment Report, net FDI flows to North Macedonia increased significantly and reached USD 606 million in 2021, compared to USD 230 million a year earlier; while the total stock of FDI was estimated at USD 7.2 billion, around 52.2% of the country’s GDP. According to figures by the Central Bank, the main investing countries in terms of stocks are Austria and the UK (EUR 913 million and 652 million, respectively), followed by Greece (EUR 612 million), the Netherlands (EUR 503 million) and Germany (EUR 471 million). Manufacturing is the sector that attracts the most FDI (34.8% of the total stock), ahead of financial and insurance activities (21.6%).
In 2022, total net inflows from direct investments in the country stood at EUR 753.8 million, as a result of registered net inflows based on intercompany lending (EUR 457.6 million) and equity (EUR 307.2 million) amid decreased reinvestment of earnings (EUR 11 million – data Central Bank). The majority of inflows arrived in the fourth quarter of the year (EUR 246 million).

North Macedonia’s legal and regulatory framework is generally favourable to foreign investors and provides numerous incentives to attract them. Moreover, the country adopted a new law to create more advantageous conditions for strategic investments. Both the Law on Technological Industrial Development Zones (TIDZ) and the Law on Financial Support of Investments offer incentives to investors, including a ten-year tax exemption on personal and corporate income, free access to public services, job creation and capital investment subsidies, and financial support to exporters. Labour costs are low, but on the other hand, there is often a shortage of skilled labour. For sectors such as banking, financial services, insurance, and energy, investors must meet certain licensing requirements (which are the same for domestic and foreign investors), while the country does not have a national investment screening mechanism in line with international standards. The country has made significant efforts to harmonise its legal framework with the criteria, standards and practices of the European Union. The sector of digitalization and green energy have been identified as strategic by the government: according to data by fDi Markets, renewable energy projects contributed most to FDI in North Macedonia between January 2017 and July 2022, totalling USD 739 million, ahead of the real estate sector (USD 409 million) and software and IT (USD 381 million). A number of challenges remain nonetheless, including corruption, lack of transparency, poor customer service, excessive bureaucracy, political interference in the judiciary, lack of government capacity, communication difficulties and shortcomings in the rule of law and contract enforcement. North Macedonia ranks 85th out of 180 economies on the 2022 Corruption Perception Index and 55th out of 176 in the 2023 Index of Economic Freedom.

Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) 230556794
FDI Stock (million USD) 7,1817,1337,479
Number of Greenfield Investments* 31929
Value of Greenfield Investments (million USD) 1361,028618

Source: UNCTAD - Latest available data.

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

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What to consider if you invest in North Macedonia

Strong Points
The country's key advantages in terms of attracting FDI include:

- Low labour costs and high-quality workmanship;
- Stable democracy;
- Fast and uncomplicated procedures to create an enterprise;
- FDI-friendly governement policies;
- the country's integration into the German production chain.
Weak Points
The country's hurdles to investment are :

- High structural unemployment and training deficit;
- Important size of informal economy;
- Inadequate transport infrastructure;
- Significant indebtedness of the private sector (93% of GDP at the end of 2014);
- Conflicting political landscape;
- Tensions between the Slavic majority and the Albanian minority.

Government Measures to Motivate or Restrict FDI
North Macedonia is an open and business friendly country, which ranks on the 11th spot in the 2018 Doing Business Report of the World Bank which evaluates the ease of doing business in 190 countries.

The North Macedonian Constitution stipulates that foreign persons (legal entities, individuals or civil partnerships registered in a foreign country) must enjoy equal rights with local persons when conducting economic activities in North Macedonia except where otherwise provided by the law (“national treatment”). This principle covers the entire range of economic and legal forms used for business activity.

The North Macedonia has a flat tax rate of 10% for corporate and personal income tax purposes. Investors are eligible for reduction in the profit tax base by the amount of prior profit reinvested in tangible assets (such as real estate, facilities and equipment) and intangible assets (such as computer software and patents) used for expanding the business activities of the entity.

The Law on Technological Industrial Development Zones provides for a special tax treatment for any investor who invests in the appointed zones.

The legal framework also includes the One-Stop-Shop system that aims to tackle some of the administrative barriers of entry into the business life in North Macedonia. According to the Law of the One-Stop-Shop system, all types of trade companies are registered within 4 hours of submission. Another important feature of the One-Stop-Shop is the electronic distribution service that allows any potential investor or third party to obtain complete electronic information about the operations of companies in the country.

To learn more about the goverment measures to encourage FDI in North Macedonia, please visit Invest in North Macedonia website.

Bilateral Investment Conventions Signed By North Macedonia
North Macedonia has signed numerous bilateral conventions on FDI. You may see them on the policy investment hub website.

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Procedures Relative to Foreign Investment

Freedom of Establishment
The current Company Law is effective since 2004. The law defines five forms of companies: General Partnership, Limited Partnership, Limited Liability Company, Joint Stock Company and Limited Partnership by Shares.

To learn more please visit Invest in North Macedonia website.

Acquisition of Holdings
A 100% foreign ownership is possible.
Obligation to Declare
New company must register at the Central Registery and then to the VAT at the Public Revenue Office. More information may be found in the 2018 Report on Doing Business of the World Bank and in KPMG Investment Guide to North Macedonia.
Competent Organisation For the Declaration
E-Registration Portal
Public Revenue Office website
Requests For Specific Authorisations
Some sectors require specific permits and licenses (communication and energy sector for instance), to find out more you may visit the Invest In North Macedonia website.

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Investment Opportunities

Investment Aid Agency
Invest in North Macedonia
Tenders, Projects and Public Procurement
Tenders Info
Other Useful Resources
Ministry of Economy
Ministry of Foreign Affairs
Ministry of Finance
Directorate for Technological Industrial Development Zone
North Macedonian Chamber of Commerce

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Latest Update: September 2023