North Macedonia has reduced its tax system to a single number: 10%. This rate applies to corporate profits as well as to salaries, dividends and capital gains of individuals. The country has been a NATO member since 2020 and is an EU candidate; the denar has been de facto pegged to the euro since 1997. Company formation in North Macedonia can also mean ten years without profit tax in the technological industrial development zones.
Twice 10%
North Macedonia levies a flat profit tax of 10% on corporate profits; there is no progression by profit level. The same 10% applies to personal income tax – on salaries, dividends and capital gains. Anyone planning company formation in North Macedonia and distributing profits therefore pays the same rate twice – 10% at company level and 10% on the dividend.
For shareholders who are also managing directors, the burden is consistently low and easy to calculate. Besides income tax, employees bear social contributions totalling 27.3% of gross salary: 18.8% pension, 7.3% health and 1.2% unemployment insurance. Taxes are administered by the Public Revenue Office (UJP).
The development zones
The technological industrial development zones offer the greatest leverage. Companies that establish themselves there pay no profit tax for the first ten years; newly hired employees are exempt from income tax for the same period. There are also exemptions from customs duties on imported machinery and equipment, VAT exemption for trade in goods within the zone and land on leases of up to 99 years.
The state can also reimburse up to 10% of investment costs for new machinery, equipment, buildings or land. Information on the zones and incentives is provided by the state investment agency Invest North Macedonia. The zones are primarily aimed at manufacturing and technology with an export focus.
DOOEL or DOO
The limited liability company comes in two variants: the DOOEL with a single shareholder and the DOO with several. The minimum capital is €5,000 in both cases. Shareholders and managers can be foreigners; the law does not require the managing director to live in North Macedonia.
| DOOEL | DOO | |
|---|---|---|
| Shareholders | exactly one | two to fifty |
| Minimum capital | €5,000 | €5,000 |
| Managing director | at least one individual | at least one individual |
Denar and euro
The national currency is the denar, whose exchange rate has been held de facto at around 61.5 denars per euro since 1997. For companies from the eurozone, exchange rate risk is therefore low, even though North Macedonia is not formally part of the eurozone.
VAT is 18%, reduced 10% and 5%. Registration is mandatory from annual turnover of MKD 2 million, roughly €32,500. Late filings are expensive: a late VAT return can result in a €1,500 fine for the company plus €500 for the responsible person.
Registration via the Central Registry
Company formation in North Macedonia requires a single application to the Central Registry, submitted via licensed registration agents. In a one-stop-shop procedure, the registry automatically forwards the data to the tax administration and the statistics office:
- Founding act: articles of association or, for the DOOEL, a founding declaration.
- Application: filed via a registration agent with the Central Registry.
- Registration: registration and tax numbers are issued in the same procedure.
- Share capital and bank account: payment of the €5,000 within the statutory period.
- VAT: registration from MKD 2 million of turnover or voluntarily.
Registration is usually completed within a few working days.
Accounting and obligations
The key obligations for bookkeeping, accounts, audit and VAT at a glance – so you know from the start what running your company involves.
| Obligation | Rule |
|---|---|
| VAT: registration | From MKD 2 million (approx. €32,500) annual turnover; rate 18% |
| VAT: returns | File on time: late returns incur a €1,500 fine plus €500 for the responsible person |
As of 2026. Bookkeeping and filings are usually handled by specialised accountants in the target country.
Is North Macedonia right for you?
Whether North Macedonia is right for you depends mainly on activity and staffing plans – less on the market, as customers are usually abroad:
Suitable for
- Manufacturers exporting into the EU
- IT and service centres with a local team
- Investors who want to use a development zone
- Entrepreneurs looking for simple, flat taxation
Less suitable for
- Companies that strictly need an EU company
- Founders with less than €5,000 of start-up capital
- Online retailers with end customers in the EU
- Holdings seeking the benefits of EU directives
With 15% and an IP box for software, Serbia is the nearest alternative; if you need an EU company, Bulgaria offers 10% corporate tax. The overview of all locations and the tax comparison show the differences; the decision on a structure is made in the initial call.
