Taxation, labor and construction costs

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 Tax rate
Corporate Income Tax 10%
Personal Income Tax Value 10%
Value added Tax

General Tax Rate: 18%

*Preferential Tax Rate: 5%
Property Taxes  
Property Tax 0,1%-0,2%
Inheritance and Gift Tax **2 - 3% or 4 - 5%
Sales Tax on Real Estate and Rights 0,2%-0,4%

*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

Labor costs:

  • Salaries are defined by collective bargaining agreements
  • The average gross monthly salary in June 2013 is €503 (source: State Statistical Office).  This amount includes the net salary, personal income tax and social contributions for pension and disability insurance, health insurance and employment insurance.

Social security contributions:

Construction Costs:

  • The average cost of constructing a factory building shell is around €200-230 per m2
  • Currently, the initial price of the public bidding for sale of unused construction land starts with 1 Euro per square meter throughout the country