Free Economic Zones

Free Economic Zones Introduction as to what FEZ are, how many are operating and what are the incentives for investing there

Тechnological–Industrial Development Zones (TIDZs) are centers in which highly productive clean manufacturing activities are concentrated and new technologies are developed.

North Macedonia offers additional incentives for development in the TIDZs, in addition to those normally associated with free economic zones.

Investors in TIDZs are entitled to personal and corporate income tax exemption for the first 10 years.  Investors are exempt from payment of value added tax and customs duties for goods, raw materials, equipment and machines. Moreover, up to €500.000 can be granted as incentive towards building costs depending on the value of the investment and the number of employees. Land in a TIDZ in North Macedonia is available under long-term lease for a period of up to 99 years.

Other benefits include completed infrastructure that enables free connection to natural gas, water, electricity and access to a main international road network. Investors are also exempt from paying a fee for preparation of the construction site. Fast procedures for business activity registration are provided in TIDZ that further reduce the costs of setting up.

The Government pays special attention to production activities, activities from the IT area (software development, hardware assembling, digital recording, computer chips and the like), scientific research activity and new technologies with high environmental standards, for which additional benefits are envisaged in the TIDZs. Investors in TIDZs who operate in these areas are exempt from the liability for submission of a guarantee as collateral for any customs arrears.

Taxes, Customs and other Incentives

  • 10 YEAR TAX HOLIDAY – Investors in the free zones are entitled to a 10-year tax holiday for profit and corporate tax and 100% reduction of personal income tax for a period of up to 10 years. Investors are exempt from payment of value added tax for import and trade of goods in the free zones. Additionally, investors are exempt from payment of customs duties for equipment, machines and spare parts.
  • The land in the free zones in Republic of North Macedonia is available under long-term lease for a period of up to 99 years at concessionary prices.
  • Investors are exempt from paying utility taxes to the local municipality, and fees for land building permits.
  • Free connection to natural gas, water and sewage network.
  • The Government may support growth of capital investments and income with a return of 10% of investment costs in new machines and equipment, or investment in buildings and land.
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