Key Tax Rates at a Glance
| Tax Type | Rate | Tier | Notes | Source |
|---|---|---|---|---|
| Income Tax — top rate | 10.0% | Low Tax | Top marginal rate | OECD 2026 |
| Income Tax — lowest rate | 10.0% | Entry rate | OECD 2026 | |
| Corporate Tax | 10.0% | Low Tax | Standard rate | OECD 2026 |
| VAT | 18.0% | Low Tax | Standard rate | OECD 2026 |
| Capital Gains Tax | 10.0% | Low Tax | Standard rate | OECD 2026 |
| Social Security (employee) | 27.9% | Employee contribution | OECD 2026 | |
| Territorial Taxation | No | Worldwide taxation | OECD 2026 | |
| Digital Nomad Visa | No | Check official government sources | Official |
North Macedonia Special Tax Regime
| Criterion | Detail |
|---|---|
| Who qualifies | Qualifying expats, investors and skilled workers. |
| Tax rate under regime | Reduced rate under North Macedonia Special Tax Regime. |
| Duration | Varies — consult official government sources. |
| Application process | Apply through North Macedonia Tax Authority. |
| Key restriction | Must not have been tax resident in prior years. |
Income Tax Brackets
Income Tax Brackets & Surtax
North Macedonia applies a flat 10% income tax on the first bracket (up to approximately MKD 1,080,000 per year, or $19,000 USD). Income above this threshold is subject to an additional 18% surtax, creating an effective combined rate of 28% for high earners. The structure is simple and transparent, though the jump from 10% to 28% is steep. Personal deductions (standard deduction ~MKD 50,000, pension contributions) reduce taxable base.
Corporate Tax
Corporate Tax
North Macedonia's 10% corporate tax applies only when profits are distributed to shareholders — not on accrual. This creates a retention incentive: companies that reinvest earnings avoid the 10% tax until dividends are paid. The deferred structure makes North Macedonia relatively efficient for SMEs and startups accumulating capital. Dividends received by shareholders are taxed as personal income at 10% (or 28% if above threshold).
VAT & Consumption Taxes
VAT & Consumption Taxes
Standard VAT is 18%. Reduced rate of 5% applies to food, medicine, books, and hospitality (restaurants, hotels). Threshold for VAT registration is MKD 300,000 (~$5,300). VAT structure is harmonized with EU standards as part of EU accession process. Border trade and e-commerce follow standard OECD guidelines.
Capital Gains & Investment Income
Capital Gains & Investment Income
Capital gains are taxed as personal income at the same brackets (10% or 28% depending on total income). No separate capital gains tax rate exists. Dividends from domestic and foreign companies are also taxed as personal income. Interest income falls under personal income taxation. This integration means investment gains are not separately penalized, but they do push earnings into the 28% bracket for high earners.
Digital Nomad & Expat Visas
North Macedonia does not currently offer a dedicated digital nomad visa. Check official government sources
Tax Scenarios — Effective Rates
Estimated all-in tax burden after income tax and employee social security. Assumes standard deductions; does not account for special regimes or itemised relief.
Tax Burden Calculator
Estimated take-home pay in —
Key Insight
North Macedonia applies a 10.0% top personal income tax rate, 10.0% corporate tax, and 18.0% VAT — a competitive tax structure for the region.
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Frequently Asked Questions
Comparisons
Social Security & Benefits
Social Security
The largest tax burden in North Macedonia is mandatory social security: 18.8% for pensions (PFIOD) plus 7.5% for health insurance (FONZ), totaling 26.3% for employees — one of the highest rates in the Balkans and competitive with high-tax Nordic countries. Self-employed rates are approximately 27–33% depending on income category. Contributions are compulsory and do not provide deductions from income tax. This high SS burden offsets the low 10% income tax benefit.