INCENTIVES - FREE ZONES
FREE ZONES
In order to attract foreign investments Macedonian Government established 4 main free zones and several minor zones throughout Macedonia. The companies that intend to invest in the zones may count on a set of incentives considered to be among the most favorable in Europe and worldwide. The two major zones are located near Macedonian capital – Skopje, being the most attractive ones thanks to the proximity of Skopje international airport, main highway (Corridor X), as well as for the ease of hiring human resources and provision of services and commodities. The zones are fully equipped with the necessary infrastructure and are connected to electricity, water and gas supply networks. As of 2008, over the period of only 5 years, several multinationals opened their own production plants (see overview on the left side).
INCENTIVES AND SUBSIDIES
Macedonian Government grants the following incentives and subsidies to foreign companies willing to invest in the zones by establishing production facilities:
▪ exemption from paying profit tax over the period of first 10 years
▪ exemption from paying personal income tax over the period of first 10 years
▪ exemption from VAT and customs duties on goods, raw materials and equipment
▪ land in the zones available for long-term lease up to 99 years at concessionary prices
▪ exemption from paying utility taxes to the local municipality
▪ exemption from paying fees for land building permits
▪ free connection to natural gas, water and sewage network
▪ participation of Macedonian Government in construction costs up to EUR 500.000
▪ green customs channel for goods upon execution of customs formalities
A BRIEF OVERVIEW OF TAXES AND CUSTOMS DUTIES APPLIED WITHIN AND OUTSIDE OF FREE ZONES
TAXES
TYPE OF TAXRATE OUTSIDE OF ZONERATE WITHIN ZONE
VAT18%0%
Profit tax10%0% applied over the first 10 years
Personal tax10%0% applied over the first 10 years
CUSTOMS DUTIES
COMMODITIESRATE OUTSIDE OF ZONERATE WITHIN ZONE
Raw materials0% - 15%0%
Equipment5% - 20%0%
