expenditures, increased by the unrecognized expenditures for tax purposes.
Income from sale of own agricultural products. The tax base for income realized from the sale of agricultural products is the difference between the total income realized and the recognized normative expenses in the amount of 80% (that is, 80% of the expenses incurred by the taxpayer are recognized as deductible for personal income tax purposes). Taxpayers whose income realized from the sale of agricultural products does not exceed MKD1 million are entitled to claim back the tax paid, provided that they did not realize any other personal income in the reporting year.
Income from property and property rights. Income from property and property rights includes income earned through the lease or sublease of movable and immovable property (for example, land, residential or business premises, garages, leisure and recreational premises, equipment, transportation vehicles and other types of property). The tax base for income from property and property rights is calculated as the gross income decreased for the recognized normative expenses in the amount of 10% for empty leased property and 15% for furnished leased property.
Income from copyrights and industrial property rights. Income from royalties is considered to be payments received for the use of, or the right to use, copyrights and industrial property rights.
Investment income. Under the Macedonian Law on Personal Income Tax, investment income includes the following items:
• Dividends and other income received from participations in the profits of legal entities
• Interest on loans granted to natural persons and legal entities
• Interest on deposits
• Interests on securities
• Other income from securities or financial instruments
The gross amounts of the above items are taxable.
Capital gains. Capital gains consist of income realized through the difference between the sale and the purchase price when selling or exchanging immovable property, securities, equity interests, and other tangible and intangible assets. If the difference is negative, a capital loss is generated. As of 1 January 2023, taxation of capital gains from the sale of securities and shares issued by investment funds acquired as of the date of adoption has been introduced as well as amendments concerning tax concepts regarding the vesting period, tax rate and the method for calculation and payment of the tax due. There are new obligations for payers of capital gains prior to the payment.
Gains from games of chance and other prize games. The gains amounting to MKD5,000 from general games of chance (lottery, electronic games of chance, prize games and interactive games of chance) are exempt from personal income tax. If the gains from general games of chance are higher than MKD5,000, the full amount is subject to personal income tax. Gains from special games of chance (games of chance in a casino, sports betting and games of chance in a slot machine club) are fully subject to personal income tax. The tax rate for the gains from games of chance and other prize games is 15%.
• Money and claims of money
• Securities and other movable property
The inheritance and gift tax rates vary depending on the order of succession of the recipient. The tax rate is 0% for taxpayers in the first line of succession. For taxpayers in the second line of succession, the tax rate is between 2% and 3%. For other taxpayers, the rate is between 4% and 5%. The municipal authorities fix the actual rate of tax.
C. Social security
Contributions. Employers are required to withhold the contributions listed in the table below from gross salary. No employer contributions are required. The following are the rates for the contributions.
The minimum base for social security contributions equals 50% of the average gross national salary (50% of MKD57,609 [approximately EUR937]). The maximum base for social security contributions equals 16 times the average gross national salary (MKD921,744 [approximately EUR14,988]).
Self-employed individuals must pay the contributions at the above rates. Their minimum base is the same while the maximum base equals 12 times the average gross national salary (MKD691,308 [approximately EUR11,241]).
Totalization agreements. To provide relief from double social security contributions and to assure benefit coverage, North Macedonia has entered into totalization agreements, which usually apply for a maximum of two years, with the following jurisdictions.
Albania France Poland
Australia Germany Romania
Austria Hungary Serbia
Belgium Italy Slovak Republic
Bosnia and Herzegovina Kosovo Slovenia
Bulgaria Luxembourg Sweden
Canada Montenegro Switzerland
Croatia Netherlands Türkiye
Czech Republic Norway United Kingdom
Denmark*
* This agreement has not yet entered into force.
D. Tax filing and payment procedures
Reporting obligations for individuals. Resident individuals must submit an e-calculation (E-PDD) with the Public Revenue Office (PRO) and report any income received from local individuals and income received from abroad. Nonresident individuals must electronically report their Macedonian-source income received from local individuals.
The submission of the E-PDD must be made by the 10th of the month following the month in which the income is received.
The tax obligation is calculated by the PRO on the submission of the E-PDD and the payment must be made by the 15th of the month following the month in which the income is received.
Reporting obligations for legal entities. Legal entities that pay personal income to resident and nonresident individuals must submit an e-calculation with the PRO and report the income paid to individuals. The tax obligation is calculated by the PRO on the submission of the E-PDD and Monthly Calculation for Integrated Payment (MPIN), and the tax should be paid simultaneously with the payment of the income. The MPIN is an electronic software of the tax authorities used for salary calculation. The taxpayer is obliged to calculate and report the monthly social security contributions and personal income tax on the MPIN form by the 10th of the month for the employment income paid out in the previous month. The MPIN form is then processed by the tax authorities, which further issue a salary declaration and payment order. The payment of the social security contributions and personal income tax due should be made no later than the 15th of the month for the employment income paid out in the previous month.
Tax returns. The annual tax returns are prepared by the tax authorities based on the data provided by the legal entities that pay personal income and the individuals through the E-PDD and MPIN system.
The completed tax returns are provided to the individuals by 30 April in the year following the reporting year. Individuals are entitled to review and to correct (if necessary) the tax return no later than 31 May. The annual tax obligation is determined from the tax returns provided by the PRO or from the tax clearance issued by the PRO based on the corrected tax returns.
The deadline for payment of the tax determined with the tax return is 30 June. The deadline for payment of the tax determined with tax clearance is 30 days after receiving the clearance.
Other rules. Tax at a rate of 10% (see Rates) is withheld from the following types of income:
• Employment income
• Income from the sale of agricultural products if the income payer maintains business records
• Income from royalties
• Investment income
• Income from property and property rights
• Income from property and property rights if the income payer maintains business records
• Capital gains
• Income from insurance, including insurance premiums
• Other income, including income generated from sale of solid waste, from e-trading, e-marketing services, unused financial help intended for medical treatments, unused financial donations for humanitarian purposes and costs for inventory shortages that are not a result of vis major or theft and are not borne by the employer
A fixed tax rate of 15% is withheld from gains from games of chance.
(for example, employment, self-employment, study, scientific research or visiting family members). Temporary visas are renewable.
• Permanent visas, which are issued to foreign nationals who have been residing in North Macedonia with a temporary visa for five years or more and, during this period, the individual has not left the country for a continuous period of six months or for a discontinuous period of 10 months.
Nationals of Albania and Serbia who seek to apply to enter and work in North Macedonia may do so under the Open Balkan Initiative, for which North Macedonia, Albania and Serbia signed the Agreement on Conditions for Free Access to the Labor Market in the Western Balkans in December 2021. The agreement aims to simplify entry, work and residence procedures for nationals of each country in the two other countries.
Eligible nationals of Albania and Serbia (and not companies) must submit a request under the Agreement through the online platform available as of March 2024. To do so, individuals must create a profile on the Open Balkan online platform of their home country and obtain an Open Balkan ID number. They may submit the request for free access prior to entering North Macedonia, or no later than 90 days from the date of arrival in North Macedonia. Requests will be processed within 30 days of submission. Successful applicants will receive an electronic document by email that authorizes them to stay and work in North Macedonia for up to two years, with the possibility of extension. These individuals will not be required to separately obtain work and residence authorization.
I. Family and personal considerations
Family members. After a foreign national obtains a residence permit or visa, the spouse and children may apply for their own residence permits on the basis of a family reunification.
Family members of foreign nationals holding residence permits or visas receive priority in North Macedonia for the obtaining of work permits.
Individuals who seek to apply for work and residence purposes in North Macedonia under the Open Balkan Initiative will not be eligible to sponsor permits for family members.
Marital property regime. The ordinary marital property regime in North Macedonia is participation in jointly acquired properties.
Driver’s permits. Foreign or international driver’s licenses may be used in North Macedonia.
Foreigners that reside in the country for a period longer than six months are required to obtain a local driver’s license.