General Presentation January 2015 1

Republic of Macedonia
BUSINESS CLIMATE
AND INVESTMENT
OPPORTUNITIES
January, 2015
Why Macedonia?
Competitive
Excellent
Competitive
Location Infrastructure Workforce
Investment
Incentives
Investor
friendly
Government
Higher Profits & Increased Competitiveness
All of Europe in 1 to 3 days via truck or rail

2 brand new international airports
1 to 3 hours to international seaports
No trade barriers with Europe, Ukraine & Turkey
Near to Middle East and North Africa
Perfect entry point to Europe
Agency for Foreign Investments

and Export Promotion
www.investinmacedonia.com
Location and Transport Infrastructure
Two Pan-European corridors:
East-West Corridor 8
North-South Corridor 10
Road network: 9,205 km

Railway network: 900 km
Two international airports:
Skopje
Ohrid
International ports*:
Thessalonica (Greece): 250 km
Durres (Albania): 300 km
* Distance from Skopje

Your Advantages
Unbeatable tax benefits Lowest in Europe
10% Corporate & Personal income tax
0% Tax on retained earnings
Wages Most competitive in Europe

506 per month
374 per month in manufacturing
Lowest operating costs in Europe - drive industry expansion

Your investment is protected
Government guarantees
Macedonia member of MIGA
Tax Free Economic Zones

Manufacturing, Financial, Medical, Tourism for Greenfield projects
Commercial buildings available Easy to start Brownfield projects

Continuous implementation of reforms

Regulatory reforms
One-Stop-Shop: 4 hours company
registration
Regulatory Guillotine
Electronic One-Stop-Shop for
customs permits and licenses
Single window: Improving
interoperability between government
institutions
Cadaster reforms
Digital Cadaster covering 99% of the
real estate in Macedonia
Notaries and land surveyors have
access to land register through online system

Liberalization of real-estate
market
Foreigners free to purchase real
estate and construction land
Simplification of procedures for
obtaining construction permits
from 21 to 3 steps
Liberalization of Labor Market

Modern Labor Law
Improved labor force flexibility
3rd BEST IN STARTING A

BUSINESS IN THE WORLD
4th FRIENDLIEST TO
FOREIGNERS
World Banks Doing Business 2015 Report
World Economic Forum 2013
BEST FOR STARTING A BUSINESS

IN THE REGION
Based on the World Banks Doing Business Report 2015
1st IN TOTAL TAX RATE IN

THE WORLD
7th IN
OVERALL PAYING TAXES
PwC and World Bank Group Study 2015
PwC and World Bank Group Study 2015

Ease of Doing Business 2015
107
91
30
32
Macedonia
Poland
36
37
38
Montenegro
Slovak
Republic
Bulgaria

44
Czech
Republic
48
51
54
Romania
Slovenia
Hungary
55
Turkey
65
Croatia
Serbia
Bosnia and
Herzegovina
Best Countries for Business

Forbs Magazine Global Rankings 2013
82
36
39
42
43
44
45
47
Macedonia
Poland
Bulgaria
Czech
Republic
Montenegro
Croatia
Hungary
48
51
Slovakia
Romania
86
57
17
Slovenia

Turkey
Bosnia and
Herzegovina
Serbia
Index of Economic Freedom

World Rankings 2014
119
43
50
51

61
62
64
68
74
87
95
101
Overall Paying Taxes

Ranking 2015
151
87
7
36
42

52
88
89
98
165
119
56
10
Corruption perception index
64
Macedonia
69
69
69
Romania
Bulgaria
Romania

76
78
80
Montenegro
Serbia
Bosnia and
Herzegovina
11
Economic Indicators
GDP GROWTH(%)
INFLATION
Low inflation: <2% annually over the last 13 years
2013: 2.8%; 2014 : - 0.3%
CURRENCY
Macedonian Denar pegged to the DM/
EXPORT
YEAR (US$
EXPORTBY(billion
) bn)
for the last 20 years (1= MKD 61.6)
AVERAGE GROSS SALARY IN 2014

2.6
2008
1.9
2009
2.5
2010
3.2
3.1
3.2
2011
2012
2013
517 per month

374 per month in manufacturing
2.7
2014 Q1-Q3
CREDIT RATINGS 2014
FDI BY YEAR (million )
Standard & Poors: BB- (Stable)

Fitch: BB+ (Stable)
BUDGET DEFICIT & STATE DEBT

Source: National Bank of the Republic of Macedonia
Budget Deficit, 2014: 3.9 % of GDP

State Debt, Q1 2014: 35.7 % of GDP
12
Unbeatable fiscal benefits and utility costs
Corporate Income Tax

Macedonia*
Romania*
10%
16%
Personal Income Tax
General VAT Rates

Macedonia
18%
Turkey
18%
Czech Republic
19%
Czech Republic
20%
Hungary
19%
Slovakia
20%
Poland
19%
Ukraine
20%
Slovakia*
19%
Poland
Croatia
20%
Romania
Turkey
20%
Croatia
Ukraine
21%
Hungary
23%
24%
25%
27%
13
Social Security Contributions

Macedonia - Social Security Contributions
21.2%
9.2%
1.6% 0.5%
2008
19.0%
7.5%
1.4% 0.5%
2009
18.0%
7.3%
1.2% 0.5%
2010 2014
Pension Insurance
Health Insurance
Employment Insurance
Additional Health Insurance
Comparison - Social Security Contributions

Macedonia
Bulgaria
Montenegro
Serbia
Croatia
Poland
Czech
Hungary
Slovakia
Ukraine
Romania
Source:
PricewaterhouseCoopers (Taxes at a glance 2013), National Investment Promotion Agencies
14
Sustainable Work Force Supply

10,000 college graduates each year are ready to bring their talents to area employers
41.5% of population under the age of 30

High intellectual capital
65% increase in total number of undergraduate degrees in 2009 compared to 2006
85% of high school graduates enroll in universities
Multiple vocational high schools in each city
Tailor-made training programs through Vocational Schools or Universities (e.g.

JCI Case)
6% of GDP spent on education

60 million investment for 200 new laboratories in technical Universities

15
Sustainable Work Force Supply

Number of enrolled students
in Colleges and Universities
Number of graduates
in Colleges and Universities
64,779
63,437
57,894
57,746
56,906
2009/2010
2010/2011
2011/2012
2012/2013
10,392
10,232
2008
2008/2009
11,197
10,839
58,747
2009
9,802
2010
2011
9,480
2012
2013
2013/2014
Excellent Language Skills

Foreign
Languages
Studied
Students in
Primary
Schools, % of
Total
Students in
Secondary
Schools, % of
Total
English
99%
96.5%
French
0.6%
2.8%
German
0.3%
0.5%
Russian
0.1%
0.2%

Every child in Macedonia begins to learn English

in the first grade of primary school
Two foreign languages are mandatory in high

school: English, and either German, French, or
Russian
English is also taught for two years at University

level
Regional languages (Serbian, Croatian,

Bulgarian, Albanian and Greek) are widely
spoken
Source: State Statistical Office of the Republic of Macedonia (Education

2012/2013) and Ministry of Education and Science
16
INVESTMENT
OPPORTUNITIES
Investment Opportunities
Target Sectors
Machine and Automotive components
ICT
Medical Devices and Pharmaceuticals
Agribusiness and Food Processing
Energy sector
Real Estate & Construction
Textile
Tourism
Filming

18
Machine and Automotive Components Industry
Existing engineering and manufacturing
tradition
Legacy of skills available to new investors
Component production started in the 1960s to
supply Zastava, Serbia
Companies primarily supply the aftermarket
Johnson Controls, Johnson Matthey, Kemet,

Teknohose, (Free Economic Zones), Kromberg
& Schubert, Hi-Tech to supply OEMs, Van Hool
Markets are Europe, Russia, Turkey, Africa,
USA
Most companies have ISO 9001 / TS 16949
quality certification
19
ICT Sector
4-hour company registration

Electronic fee payments for government
services
Digital certificates for employers
Legislation fully harmonized with the EU
Free computer application training

20
ICT Sector
Best telecommunication networks in
the region the system is 100% digital
Leading multinational hardware and

software suppliers (Microsoft, HP,
IBM) have local sales and support
services in Macedonia
IT skills shortage in Western
economies and growing demand for
outsourcing services Macedonia can
be your solution!
Availability of well-educated staff at
competitive costs
Quality assurance and standardization
procedure intitialized

21
Healthcare Sector, Medical Devices and Pharmaceuticals
Existing pharmaceutical industry, exports to
over 30 countries worldwide
Strong educational system, with an
abundance of medical and pharmacy
graduates
Supportive regulatory environment
Licensing arrangements in place with many
of worlds leading pharmaceutical
companies
Available sites at industrial and free

economic zones
Manufacturing tradition

22
Agribusiness and Food Processing Industry
Unique combination of Continental and SubMediterranean climates
Environment friendly production practices
Technologies for food processing
Excellent access to regional markets

Strong reputation for quality food products
The greatest investment opportunities:
fruits and vegetables production, storage
distribution and processing industries (logistic
centers)
wine production
sheep and goat cheese production
23
Energy Sector
Government
strongly
committed
to
developing the energy sector through public
and private investments
National strategy based on diversifying the

sources and types of energy use
Focus on completing the strategy for the
exploitation of renewable sources of energy
(measurement
of
wind
potential;
preparation of a feasibility study)
Study for Reliability of the Power System and
Connection of Wind Power Plants
Solar potential: the annual solar radiation is
1385 kWh/m2
Climate characteristics - continental climate
with hot and dry summers, and
high
intensity of solar radiation
24
Real Estate & Construction
Real estate project
City
Skopje
Skyscrapers
Hotels (3 hotels in the center of the city; 1 hotel near to the airport)
Shopping and business centers, including golf terrain
Sport and recreational center

Business center
Locations available as a result of land transformation of army barracks
(commercial and business centers and residential areas)
Ohrid
Hotels (along the lake cost)

25
Textile sector
Esteemed reputation of Macedonian textile
producers on the European Union market
High flexibility and readiness to adapt to the
demands of foreign markets
Exceptional relation between product quality
and costs
Modern equipment
1-2 days distance to European Union markets

Foreign investment welcomed in the readymade clothing and knit production industries

26
Tourism
Summer Destinations
Numerous tectonic, glacial and man-made
lakes, 50 in total
Large natural lakes: Ohrid, Dojran and Prespa
Water sports, archeological, wine, eco and

rural tourism
In September 2014 the number of foreign
tourists increase for 3.5% compared to
September 2013.
Winter Destinations
Over 45 mountain peaks exceeding 2.000 m
70% of the territory is mountainous and many
locations have more than 100 days of snow
Opportunities for development and
enhancements of hotels and spa resorts on
many locations
27
Tourism
Historical and Culture Heritage
4,293 archeological sites
992 churches and monasteries
23,000 icons (2nd most valuable
collection in the world)
228 mosques, inns, Turkish baths and old
bazaars,
47 towers and fortresses
Spa tourism
Territory rich with geothermal waters
More than 60 thermal springs
Identified locations for construction of

new spa centers and hotels
28
Filming industry
Macedonia geographically provides various types of landscapes on locations at very short
distances from each other.
With annual average of 280 sunny days, Macedonia is one of the best locations for exteriors
and locations filming.
INCENTIVES
A film producer interested in investing funds in Republic of
Macedonia for making a feature film, documentary, animation,
television film or television series, may acquire the right to refund
20% of direct eligible expenditures paid in Republic of Macedonia.
Eligible expenditures
1) Production services
2) Postproduction services
3) Animation services
4) Procurement of goods for film sets and the costumes needed for
production of the film/television project.

29
Technological Industrial Development

Zones - TIDZs
Free Zones
TID Zone
A special customs area, part of the territory of Macedonia, in which
special customs and tax incentives prescribed by the Law on TIDZ
are applied
User of TID Zone
Any domestic or foreign entity registered in accordance with the
Company Law
Incentives in the Zones are applied only for the following activities:
Production activities
IT and R&D activities
Services related to the import of the goods
15 TID Zones are planned in the DTIDZ 3-year Program
3 fully operational (Skopje 1, Skopje 2 and Stip)
1 is undergoing PPP procedure (Tetovo)
11 others in different development stage
31
Global Free Zones of the Future 2012/2013 Winners

fDi Magazines Global
Ranking of Economic Zones
reported Technological
Industrial Development Zones
Skopje 1 & 2 in the top 50
Free Zones of the Future
2012/2013

32
Technological Industrial Development Zones

Free Zone Rankovce
Area Size: 40 ha;
Corridor 8
Free Zones Skopje 1, 2 & 3

Area Size: 145 + 95 + 44 ha;
E-75 Highway;
Next to the Intl Airport
Free Zone Stip

Area Size: 208 ha;
The largest Free Zone;
Excellent logistic support
Free Zone Tetovo (PPP)

Area Size: 95 ha;
Distance from Skopje - 35 km
Free Zones:
Delcevo: 21 ha;
Vinica: 26 ha;
Berovo: 17 ha;
Free Zone Radovis
Area Size: 10 ha;
Main Road M6
Free Zone Strumica

Area Size: 23 ha;
Free Zone Kicevo

Area Size: 30 ha
Free Zone Gevgelija

Area Size: 50 ha;
85 km from the port of
Thessaloniki
Free Zone Struga

Area Size: 30 ha;
Next to the Intl Airport;
170 km from Durres port
Free Zone Prilep

Area Size: 68 ha;
Between Prilep and Bitola
(4th and 2nd largest city)

33
Fiscal Benefits
No customs duties & No VAT on imported raw materials, equipment &
construction materials
TAX RATES
TAX
TIDZs
Outside TIDZs
0%
Connection to utilities, complete

infrastructure is available
10%
Subsidy of up to 500,000 towards

construction costs
for the first 10

years
10%
Value added tax
0%
18%
Property tax
0%
0.1% - 0.2%
Green Customs Channel available at

border for rapid export from Zone to
EU countries
Excise taxes
0%
5% - 62%
Corporate tax
for the first 10

years
Personal income
tax
0%
CUSTOMS DUTY
PRODUCT
Land in the TIDZ is available under

long-term lease for a period of up to
99 years
TIDZs
Outside TIDZs
Training and job creation grants
Raw materials
0%
Up to 15%
All incentives are in line with EU

regulations
Equipment
0%
5% - 20%

34
TIDZ Skopje 1
55mn investment
over 500 employees
catalyst production
JOHNSON MATTHEY
TEKNOHOSE
andBEGINNING
Export Promotion
ANNOUNCING
OF
CONSTRUCTION WORK IN TIDZ SKOPJE 1
$40mn automotive components plant;

150 employees initially increasing to 500;
Integrated circuits
VISTEON
PRODIS GROUP
ANNOUNCING BEGINNING OF
CONSTRUCTION WORK IN TIDZ SKOPJE 1
KEMET
SIGNING OF THE AGREEMENT
VAN HOOL
35
TIDZ Skopje 1
SIZE OF INVESTMENT
production of producing shock

absorbers for industrial and
railway vehicles
It is no secret that we visited neighboring countries,

but Macedonia offered the most favorable investment
conditions and that is why we decided to open our plant
here", said Montante.

production of brake discs
We continue to invest in Turkey and abroad.

Today, we decided to invest in Macedonia. The
main reason is that the country is quite
dynamic. Our decision to invest was also
influenced by the goodwill attitude of the
countrys officials. We see our investment as a
gateway to Europe, said company general
manager Ibrahim Gudum.
36
TIDZ Stip
FORTUNE 100 COMPANY
$40B Turnover
PROJECT SCOPE
2nd project in Macedonia
Construction of cut & trim plant
for car seats
CONSIDERED COUNTRIES
Macedonia, Moldova and Tunisia

Macedonia was chosen because

of its international competitiveness,
because of our positive existing
corporate experience here and above
all because of the support and
professionalism that we have received
from all Government institutions
during the analysis process.
Steven Meylemans
Project Manager
Johnson Controls
37
Investment Projects outside of TIDZs
SIZE OF INVESTMENT
SIZE OF INVESTMENT
Production of cable installations
Start of operations Q2 2012

We are very satisfied with the support provided by
Tobacco facility in Kavadarci

Fortune 500 company
the Macedonian Government and its institutions and

Bitola municipality. The decision for investment in
Macedonia represents an important step in our
expansion as part of the strategy for international
output.
Martin Passern
Managing Director
Kromberg & Schubert
38
SIZE OF INVESTMENT
Start of operation:Q1 2014

location :Kochani
Designs, manufactures and
markets electrical, electronic
and fiber optic connectors,
coaxial and flat-ribbon cable,
and interconnect systems

SIZE OF INVESTMENT
Start of operation: 2012

location:Kavadarci
automotive parts: interior
components, cockpits,
wiring harness and
electrical management
systems
39
SIZE OF INVESTMENT
Location: Veles
leading manufacturer in the
field of electro mechanical
and electronic switches and
switching systems

SIZE OF INVESTMENT
Start of operation:2014
Location: Ohrid
Production of electrical
installations
40
Testimonials
We believe that this factory will make us more competent on the market, having
into consideration, the fact that we would expand on European market. The location
is excellent and since we are close to the airport we can bring the clients here so
they can personally see and make sure of our production.
Per-Olof Loof-CEO and Director,
Kemet Corporation
Macedonia offers the company just-in-time delivery and minimal freight costs.
Philippe Simon
VP of Global Electronics
Johnson Controls
We picked Macedonia as an investment destination due to the benefits the

Government offered to foreign investors, and the countrys strategic position and
proximity to eastern markets and Russia, where we plan to export the entire range
of products.
Vitillo Group

41
Thank You!
AGENCY FOR FOREIGN INVESTMENTS
AND EXPORT PROMOTION
OF THE REPUBLIC OF MACEDONIA
ul.Nikola Vapcarov br. 7

1000, Skopje
Republic of Macedonia
Tel.: + 389 2 3100 111
Fax: + 389 2 3122 098
fdi@investinmacedonia.com

General Presentation January 2015 1

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

General Presentation January 2015 1

Transféré par

Droits d'auteur :

Formats disponibles

Republic of Macedonia

Higher Profits & Increased Competitiveness

All of Europe in 1 to 3 days via truck or rail

Agency for Foreign Investments

Location and Transport Infrastructure

Two Pan-European corridors:

Road network: 9,205 km

Thessalonica (Greece): 250 km

Durres (Albania): 300 km

* Distance from Skopje

Agency for Foreign Investments

Wages Most competitive in Europe

Lowest operating costs in Europe - drive industry expansion

Tax Free Economic Zones

Commercial buildings available Easy to start Brownfield projects

Continuous implementation of reforms

Agency for Foreign Investments

Liberalization of Labor Market

3rd BEST IN STARTING A

World Banks Doing Business 2015 Report

World Economic Forum 2013

BEST FOR STARTING A BUSINESS

1st IN TOTAL TAX RATE IN

PwC and World Bank Group Study 2015

PwC and World Bank Group Study 2015

Agency for Foreign Investments

Ease of Doing Business 2015

Agency for Foreign Investments

Best Countries for Business

Agency for Foreign Investments

Index of Economic Freedom

Agency for Foreign Investments

Overall Paying Taxes

Agency for Foreign Investments

Corruption perception index

Agency for Foreign Investments

for the last 20 years (1= MKD 61.6)

AVERAGE GROSS SALARY IN 2014

517 per month

CREDIT RATINGS 2014

FDI BY YEAR (million )

Standard & Poors: BB- (Stable)

BUDGET DEFICIT & STATE DEBT

Budget Deficit, 2014: 3.9 % of GDP

Unbeatable fiscal benefits and utility costs

Corporate Income Tax

Personal Income Tax

General VAT Rates

Social Security Contributions

Additional Health Insurance

Comparison - Social Security Contributions

PricewaterhouseCoopers (Taxes at a glance 2013), National Investment Promotion Agencies

Sustainable Work Force Supply

41.5% of population under the age of 30

Multiple vocational high schools in each city

Tailor-made training programs through Vocational Schools or Universities (e.g.

6% of GDP spent on education

Agency for Foreign Investments

Sustainable Work Force Supply

Excellent Language Skills

Agency for Foreign Investments

Every child in Macedonia begins to learn English

Two foreign languages are mandatory in high

English is also taught for two years at University