North Macedonia represents a very good opportunity for companies and investors who wish to invest in Southeast Europe and the Balkan Peninsula. Located at the intersection of key regional trade corridors, the country presents a strategic geopolitical position, attractive operating costs, and a highly business-friendly environment.
This article will provide an overview of strategic investments and opportunities in North Macedonia.
Enhancing Investment and Export Opportunities in North Macedonia
The Republic of North Macedonia is concentrating on investment promotion and exports through the use of best practices, implementing strategies to attract foreign investors and assist exporters. Significant efforts are being put into identifying potential areas, offering specialized advice to investors and exporters, enhancing the country’s profile as a target for entrepreneurship, and actively leveraging the market opportunities available in potential markets. The government emphasizes public-private partnerships, modern technology, and data-driven approaches to connect with investors, promote exports, and boost competitiveness. Additional activities include hosting international events, streamlining export procedures, offering market insights, and encouraging investments in tourism, Greenfield projects, and industrial zones.
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Encouraging Strategic Investments
The Law on Strategic Investments in the Republic of North Macedonia establishes the criteria, conditions, and process of implementing high-priority investment projects which are designed to encourage strategic investments, promote economic growth, attract employment, adopt novel technologies, strengthen competitiveness level, export, and mitigate trade deficit is set. The Law is built on foundational principles, including free circulation of goods, services, and capital, non-discrimination, equality, transparency, and compliance with environmental and legal requirements. Strategic investment projects are considered to be activities with a significant socioeconomic impact, including financial criteria of at least 100 million Euro in several municipalities, 50 million Euro in an urban context, 30 million Euro in rural, and 150 Euro million in all contexts.
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Eligibility Criteria for Strategic Investment Projects
The implementation of strategic investment projects must serve the public interest and meet several key conditions. Such proposed investments must comply with environmental standards, and must not at all conflict with domestic law or obligations due to ratified multilateral treaties ratified. The status of a project as a strategic investment can be determined by several factors, including:
- energy with infrastructure
- transport and telecommunications
- tourism
- manufacturing industry
- agriculture, forestry, water management, food industry
- health, industrial and technology parks, wastewater and waste management
- information technology zones
- sports, science and education, and large multifunctional construction complexes
Exceptions are made for projects in areas not listed, which can still be classified as strategic investments if the investment exceeds 150 million euros (in denar equivalent).
Process of Application
The approval and oversight process for strategic investment projects in North Macedonia involves an annual application by investors through a public call. The required documentation includes a business plan, proof of financial capacity, environmental compliance, and audited reports. A Commission for Strategic Projects, consisting of key government officials and experts, is responsible for evaluating applications, monitoring projects, and ensuring compliance with legal and strategic requirements. An Operational Group is assigned to coordinate the technical and administrative activities of the project, providing continuous support and monitoring until the project is fully completed.
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If you are interested in investing in North Macedonia, it is advisable to consult with the relevant professionals. Our firm specializes in international taxation, and our team is ready to assist with any related matters. If needed, we can connect you with top professionals to support your business activities in North Macedonia. Please feel free to contact us.
