INVEST IN MACEDONIA - Vienna Economic Forum · INVEST IN MACEDONIA Kliment Sekerovski Deputy - CEO,...

1 Agency for Foreign Investments

and Export Promotion www.investinmacedonia.com

INVEST IN MACEDONIA

Kl iment Sekerovsk i

Deputy - CEO, Agency for F D I June, 2015



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

There has never been a better time to do business in Macedonia!



4

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

Continuous implementation of reforms

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

Cadaster reforms Digital Cadaster covering 99% of the

real estate in Macedonia

Notaries and land surveyors have

access to land register through on-

line system



BEST FOR STARTING A BUSINESS IN THE REGION

Based on the World Bank’s Doing Business Report 2015

1st IN TOTAL TAX RATE IN

THE WORLD PwC and World Bank Group Study 2015

3rd BEST IN STARTING A

BUSINESS IN THE WORLD World Bank’s Doing Business 2015 Report

4th FRIENDLIEST TO

FOREIGNERS World Economic Forum 2013

7th IN

OVERALL PAYING TAXES PwC and World Bank Group Study 2015



Economic Indicators

AVERAGE GROSS SALARY IN 2014

€ 517 per month

€ 374 per month in manufacturing

CURRENCY

Macedonian Denar pegged to the DM/€ for the last 20 years (€1= MKD 61.6) EXPORT BY YEAR (US$ bn)

INFLATION

Low inflation: <2% annually over the last 13 years 2013: 2.8%; 2014: - 0.3%

Source: National Bank of the Republic of Macedonia

CREDIT RATINGS 2014

Standard & Poor’s: BB- (Stable)

Fitch: BB+ (Stable)

BUDGET DEFICIT & STATE DEBT

Budget Deficit, 2014: 3.9 % of GDP

State Debt, Q1 2014: 35.7 % of GDP

FDI BY YEAR (million €)

GDP GROWTH(%)

EXPORT (billion €)

2.6 1.9

2.5 3.2 3.1 3.2

2.7

2008 2009 2010 2011 2012 2013 2014 Q1-Q3



Sustainable Work Force Supply

• 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

10,000 college graduates each year are ready to bring their talents to area employers



Transportation costs to major European cities

MACEDONIA

KOSOVO

SERBIA

MONTENEGRO

BOSNIA

AND HERZ.

CROATIA

SLOVENIA

ITALY BULGARIA

ALBANIA

GREECE

ROMANIA

HUNGARY

SLOVAKIA

AUSTRIA

SWITZERLAND FRANCE

SPAIN

PORTUGAL

BELGIUM

LUXEMBOURG

GERMANY

CZECH REPUBLIC

POLAND

UKRAINE

BELARUS

RUSSIA

UNITED KINGDOM

TURKEY

MOLDOVA

MALTA AFRICA

IRELAND

NETHERLANDS

DENMARK

LITHUANIA

LATVIA

ESTONIA

SWEDEN

NORWAY



Corruption perception index

64 69 69 69

76 78 80

Macedonia Romania Bulgaria Romania Montenegro Serbia Bosnia and Herzegovina

Technological Industrial Development

Zones - TIDZs



Technological Industrial Development Zones

Free Zone Tetovo (PPP)

Area Size: 95 ha;

Distance from Skopje - 35 km

Free Zones Skopje 1, 2 & 3

Area Size: 145 + 95 + 44 ha;

E-75 Highway;

Next to the Int’l Airport

Free Zone Rankovce

Area Size: 40 ha;

Corridor 8

Free Zone Stip

Area Size: 208 ha;

The largest Free Zone;

Excellent logistic support

Free Zone Radovis

Area Size: 10 ha;

Main Road M6

Free Zone Strumica

Area Size: 23 ha;

Free Zone Gevgelija

Area Size: 50 ha;

85 km from the port of

Thessaloniki

Free Zone Prilep

Area Size: 68 ha; Between Prilep and Bitola

(4th and 2nd largest city)

Free Zone Struga

Area Size: 30 ha;

Next to the Int’l Airport;

170 km from Durres port

Free Zone Kicevo

Area Size: 30 ha

Free Zones:

Delcevo: 21 ha;

Vinica: 26 ha;

Berovo: 17 ha;



Fiscal Benefits

TAX TAX RATES

TIDZs Outside TIDZs

Corporate tax 0%

for the first 10

years

10%

Personal income

tax

0% for the first 10

years

10%

Value added tax 0% 18%

Property tax 0% 0.1% - 0.2%

Excise taxes 0% 5% - 62%

PRODUCT CUSTOMS DUTY

TIDZs Outside TIDZs

Raw materials 0% Up to 15%

Equipment 0% 5% - 20%

No customs duties & No VAT on imported raw materials, equipment &

construction materials

• Connection to utilities, complete

infrastructure is available

• Subsidy of up to €500,000 towards

construction costs

• Green Customs Channel available at

border for rapid export from Zone to

EU countries

• Land in the TIDZ is available under

long-term lease for a period of up to

99 years

• Training and job creation grants

• All incentives are in line with EU

regulations



FORTUNE 100 COMPANY

$40B Turnover

TIDZ “Stip”

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



TIDZ “Skopje 1”

VISTEON

• $40mn automotive components plant;

• 150 employees initially – increasing to 500;

• Integrated circuits

JOHNSON MATTHEY

• €55mn investment

• over 500 employees

• catalyst production

TEKNOHOSE

ANNOUNCING BEGINNING OF

CONSTRUCTION WORK IN TIDZ “SKOPJE 1”

KEMET

SIGNING OF THE AGREEMENT

PRODIS GROUP

ANNOUNCING BEGINNING OF

CONSTRUCTION WORK IN TIDZ “SKOPJE 1”

VAN HOOL



Thank You!

AGENCY FOR FOREIGN INVESTMENTS

OF THE REPUBLIC OF MACEDONIA

Tel.: + 389 2 3100 111

Fax: + 389 2 3122 098

e-mail: [email protected]

web: www.investinmacedonia.com

Nikola Vapcarov 7

1000 Skopje

Republic of Macedonia

INVEST IN MACEDONIA - Vienna Economic Forum · INVEST IN MACEDONIA Kliment Sekerovski Deputy - CEO,...

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