North Macedonia is one of the least known but most attractive low-tax countries in Europe, with income tax of 10% on almost all income, corporation tax of 10% and more than 40 double taxation agreements. The decisive point for our clients: North Macedonia does not take part in the Common Reporting Standard (CRS), so account data is not passed automatically to tax authorities abroad.
Why North Macedonia for asset protection?
North Macedonia taxes company profits at 10%, one of the lowest rates in Europe. The earlier model, under which only distributed profits were taxed, has not applied since the 2014 tax year: the tax falls on the annual profit, whether it is distributed or not. Dividends from a North Macedonian subsidiary remain tax-free for the parent company if the subsidiary has already paid tax on its profit. On profits from abroad, North Macedonia credits the tax paid there up to the amount of its own tax; the law has no exemption for dividends from foreign subsidiaries. Dividends paid to foreign shareholders are subject to withholding tax of 10%, which double taxation agreements can reduce further. North Macedonia is not an EU member and not part of the EU transparency regime. Above all, North Macedonia does not take part in the Common Reporting Standard (CRS). This means that banks in North Macedonia do not report account data automatically to tax authorities abroad. For clients who want to hold an account outside the European exchange of information, North Macedonia is one of the few European options left.
The tax framework
Income tax: a 10% flat tax; only gambling winnings pay 15%. Corporation tax: 10% on the annual profit. Gains from selling securities are tax-free for individuals if they were held for more than two years. No wealth tax. Inheritance tax: 0% for direct descendants. North Macedonia has double taxation agreements with more than 40 countries, including the United Kingdom, in force since 2007.
Practical uses
North Macedonian structures are particularly suited to: holding shareholdings in Eastern European companies, an intermediate holding for profits from the Balkans, managing property assets in the region, and as a basis for business owners looking for a favourable tax residence in Europe without moving into the EU.
Relevant services
Challenges
Asset classes
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