The eastern European country of Macedonia, situated at the crossroads of two major transport corridors, between the Black Sea and the Adriatic, central Europe and the Middle East, is advancing its transition into a modern and forward looking market economy.

An EU candidate country, headed by a markedly pro-business government, Macedonia is boldly distinguishing itself from its surroundings with its unmatched attitude towards foreign direct investment (FDI) and the set of business and investment incentives it offers. This has been vindicated by numerous accolades, including the World Bank ranking Macedonia fourth among the reformers in the world.
One of the country’s biggest selling points is its strategic positioning right in the centre of southeast Europe.

With Macedonia being less than a two-day drive from most of the EU countries, the investors in the country enjoy one of the lowest transportation costs for their products and product components. Three multilateral and two bilateral free-trade agreements, as well as world-class infrastructure, make for duty free access to a market of 650 million customers from the EU member states, the EFTA and CEFTA countries, as well as Turkey and the Ukraine.
In addition to the most attractive tax package in Europe (flat tax rate of 10 percent on corporate and personal income, and zero percent on reinvested profit), Macedonia prides itself with its abundant, highly skilled and very competitive labour force.

Viktor Mizo, CEO of Invest Macedonia, says; “Excess capacity and low average wages put the country in an excellent position to capitalise on leading manufacturers’ quest for new and reliable locations to expand and relocate their business. Central European economies already suffer from over-investment and outbound labour migration, while economies further east lack the stability essential for business activity.”

Competitive advantage
Sectors in which Macedonia has a significant competitive advantage include automotive components, information communications technology (ICT), agribusiness and food processing, as well as pharmaceuticals and medical devices.

Moreover, the country provides excellent opportunities for tourism and real-estate development. One of the main steps in this direction is the initiative of the Macedonian government to allow foreigners the right to directly purchase land.
To further facilitate FDI inflow into the country – in addition to the general incentives – the government has introduced special incentives for the companies operating within the four Technological Industrial Development Zones (TIDZ – free economic zones).
The investors within the TIDZs are entitled to a 10-year corporate profit tax exemption and to a rate of five percent for the personal income tax during the first five years. They are exempt from payment of VAT and customs and excise duties for goods, raw materials, equipment, and machines.

The zones encompass complete infrastructure that enables a connection to natural gas, water, electricity, and access to a main international road network. The government is even offering grants of up to O500,000 towards plant construction costs.
The presence of Societe Generalle, T-Mobile, Johnson Controls, Johnson Matthey, Siemens and numerous other companies clearly indicates a highly favorable business climate. The comprehensive incentives package, together with the image-building and awareness-raising promotional campaign ‘Invest in Macedonia,’ have definitely put the country on the World investors’ map.
In addition to the unmatched business incentives package it offers, Macedonia is a land of nature and cradle of culture.

Macedonia is a very particular mix of Slavic and Mediterranean culture, enriched by antique, Byzantine and Ottoman influences. Byzantine and Islamic architecture in breathtaking scenery together form a unique atmosphere.
On one hand, Macedonia can be discovered by moving off the beaten tracks through wild romantic mountain vistas, sleeping over in legendary monasteries, admiring the special atmosphere in the Turkish old towns and taking a swim in the bays and beautiful lakes of the country. On the other hand, you can enjoy the vibrant modern cities, such as Skopje, Macedonia’s capital. Skopje features brand-new cinemas, hotels and restaurants, as well as upscale shopping.

Commercial developments by foreign investment groups such as Soravia (Austria) and Gazit Globe (Israel), continue to shape the modern face of the city.

A look back in history
In Macedonia you can also be immersed in southeast European history, long forgotten in the West. From here, Alexander the Great started his campaign to conquer the ancient world in the 4th century B.C. The Romans subjugated ancient Macedonia in the mid-2nd century BC, and when the Roman Empire was divided in 395 A.C., this region became part of the eastern Roman Empire ruled from Constantinople. Slavic tribes settled here in the 7th century, changing the ethnic character of the area.
In the 9th century the country became the centre of Slavic Orthodox Christendom, in particular Ohrid where the successors of the Slavic Apostles Cyril and Methodius created the Cyrillic alphabet, the basis of eastern literacy, and established the first university.
Macedonia passed back and forth between Byzantine, Bulgaria and Serbia, until the Turkish invasion in 1389, when the Balkans became part of the Ottoman Empire, and the cultural character of the region changed again. A mountainous region, Macedonia offers great possibilities for enjoying winter
sports. In addition to a number of modern ski centres in the west of the country, such as Popova Shapka, Mavrovo, and Krushevo, new developments are springing in the southern part of the country, near the
Greek border.

Ohrid

Ohrid and the Ohrid Lake is the pearl of Macedonian and Balkan tourism. The UNESCO-protected Ohrid Lake is one of the three tectonic lakes on the territory of Macedonia – in addition to Prespa and Dojran. It is 287m deep and its transparent water is among the clearest and purest in Europe. Its deepness nurtures several endemic species, such as the delicious Ohrid trout. Across the lake you can find the most mystical of shores that harbour equally mystical monasteries. An excellent example is the Zaum Monastery which can be reached only by water or by climbing down the perilous rocks. One can swim in absolute silence and forget this century, for nowhere are there traces of modern times.
The town of Ohrid itself blooms in the summertime as Macedonia’s cultural and tourism capital. A typical setting would be a small tasteful cafe next to an 11th century church.
Ohrid’s major attractions are all located within a remarkably concentrated area among and above the narrow streets of the Old Town.

Ohrid’s architecture is in the typical Macedonian style, forming small white clusters of houses, created organically and overhanging one another with their varying shapes and unique facades, creating an impression of an almost natural amphitheatre which blends in harmoniously with the surrounding landscape. It harbours a great number of beautiful churches among them St John Caneo which is just above a small fishing settlement, on a cliff rising up from Ohrid Lake. The Macedonian state is now offering land for both residential development and hotels in Ohrid and its vicinity.

Macedonian food
With a unique combination of continental and sub-Mediterranean climates, fertile soils, sound food processing technologies and a strong reputation for quality, Macedonian food products are well known in the region.
With almost 40 wineries to choose from Macedonia is indeed the undiscovered vineyard of Europe. Macedonian wines differentiate themselves from many European wines since they are produced without additional sugar or sulphite preservatives.

Macedonia makes for a prime location for environmentally friendly agricultural production practices and organic production. The country exports among the best tomatoes, apples and watermelons on the market. These fresh products are amply present in the delightful cuisine.
Macedonia is a paradise for individualists, lovers of nature and authentic life. In the tourist regions, visitors will find new and renovated hotels and guest houses of all categories. There are still a great number of serene areas, where travelling entails improvisation and expecting the unexpected.

Useful information

Invest Macedonia

Nikola Vapcarov 7
1000
Skopje

Republic of Macedonia

Web: www.investinmacedonia.com

Email: fdi@investinmacedonia.com