Download Republic of Macedonia - Budapest International Business

March, 2013
Why Macedonia?
Competitive
Location
Excellent
Infrastructure
Competitive
& Educated
Workforce
Investment
Incentives
Investor friendly
Government
Higher Profits & Increased Competitiveness
Location and Transport Infrastructure
• Two Pan-European corridors:
– East-West Corridor 8
– North-South Corridor 10
• Road network: 4,370 km
• Railway network: 925 km
• Two international airports:
– Skopje
– Ohrid
• International ports*:
– Thessalonica (Greece): 80 km
– Durres (Albania): 150 km
* Distance from Border
Foreign Investment Regime
• Macedonian Constitution guarantees fair treatment of foreign
investors
• Free trade agreements with a market of 650 million customers
(EU + EFTA + CEFTA + Turkey + Ukraine)
• Complete protection of the ownership rights of foreign investors
• Republic of Macedonia is member of MIGA
(Multilateral Investment Guarantee Agency)
• Investment protection treaties with numerous countries
• 100% foreign ownership of a company allowed
• No restrictions for repatriation of profits
Economic Indicators
INFLATION
Low inflation: avg < 2% annually over the last 10 years
2007: 2.3%; 2008: 8.3%; 2009: -0.8%; 2010: 1.6%; 2011: 3.9%
CURRENCY
Macedonian Denar pegged to the DM/€
for the last 15 years (€1= MKD 61.3)
EXPORT BY YEAR (US$ bn)
AVERAGE GROSS SALARY IN 2011
2.4
2006
3.4
2007
4.4
4.0
2.7
2008
FDI as a percentage of GDP
2009
3.3
2010
€ 499 per month
2011
CREDIT RATINGS 2011
Standard & Poor’s: BB
Fitch: BB+
BUDGET DEFICIT & STATE DEBT
Budget Deficit: 2.5 % of GDP
State Debt: 26.8 % of GDP
Source: National Bank of the Republic of Macedonia
Unbeatable Fiscal Benefits
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10% Corporate & Personal income tax (among the lowest in Europe)
0% Tax on retained earnings
Double taxation treaties with many European countries
0% tax for operation in a Technological Industrial Development Zone
Real estate taxes at 2% - 4%
VAT at 18%, with 5% on specific items (agriculture, food, IT equipment)
FTAs with EU, EFTA, CEFTA countries; Turkey and the Ukraine; providing
access to over 650m customers
Corporate Income Tax
Macedonia*
Personal Income Tax
10%
Romania
16%
(highest rate)
General VAT Rates
Macedonia* 10%
Macedonia
18%
Czech R.* 15%
Turkey
18%
Slovakia
20%
Czech Republic
20%
Ukraine
20%
Czech Republic*
19%
Romania
Slovakia
19%
Slovakia
Poland
19%
Ukraine
Hungary
19%
Poland
32%
Poland
23%
32%
Croatia
23%
Turkey
20%
Hungary
Croatia
20%
Turkey
Ukraine
25%
Croatia
* Flat rate
Source: PricewaterhouseCoopers (Taxes at a glance 2011), National Investment Promotion Agencies
16%
19%
30%
Romania
35%
45%
Hungary
24%
25%
Skopje in the Top 5 Small Cities in
Europe
FDI Magazine 2010/11 Rankings
Top 5 Small Cities in Europe:
Human resources
Rank City
Country
1
Lille (Nord)
France
2
Edinburgh
UK
Judging criteria
• Unemployment rate
• Total ‘world top-500’ universities
• Number of universities
• Number of university students
• European business school rankings
• Graduates, tertiary
• Gross enrolment rate, tertiary
• Gross enrolment rate, secondary
3
4
5
Lisbon
Lyon
Skopje
Portugal
• Gross enrolment rate, primary
France
• Labour force with tertiary
education
Macedonia
FDI Benchmark across 223 European cities and 142 European regions
• Public education expenditure
• Human resources in sciences and
high-tech industries
• Economically active population
Sustainable Work Force
Supply
• 41.5% of population under 30
• High intellectual capital
–
65% increase in total number of undergraduate degrees in 2009 compared to 2006
–
85+% of high school graduates enrolled in universities in 2008
–
Multiple vocational high schools in each city
• Tailor-made training programs through Vocational Schools or Universities
• 6% of GDP spent on education
Number of enrolled students
in Colleges and Universities
Number of graduates
in Colleges and Universities
Excellent Language Skills
• Every child in Macedonia begins to learn English in the first grade of
primary school
• Two foreign languages are mandatory in high school: English, and
either German, French, or Russian
• English is also taught for two years at University level
• Regional languages (Serbian, Croatian, Bulgarian, Albanian and
Greek) are widely spoken
Foreign Languages Studied
Students in Primary
Schools, % of Total
Students in Secondary
Schools, % of Total
English
98%
96%
French
18%
32%
German
6%
21%
Italian
-
2%
Russian
1%
2%
Turkish
3%
2%
Source: State Statistical Office of the Republic of Macedonia (Education 2009/2010) and Ministry of Education and Science
Investment Opportunities
Technological Industrial
Development Zones - TIDZs
Fiscal Benefits
TAX
Corporate tax
Personal income tax
Value added tax
TAX RATES
TIDZs
Outside TIDZs
0%
10%
for the first 10 years
0%
for the first 10 years
10%
0%
18%
Property tax
0.1% - 0.2%
0.1% - 0.2%
Excise taxes
0%
5% - 62%
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PRODUCT
CUSTOMS DUTY
TIDZs
Outside TIDZs
Raw materials
0%
Up to 15%
Equipment
0%
5% - 20%
Management of existing (established) Free Zone
Development of planned Free Zone
Subsidy of up to €500,000 towards building costs
Incentives in line with EU regulation
Green Customs Channel available at border for rapid export from Zone to EU
countries
• Land in a TIDZ in Macedonia is available under long-term lease for a period of
up to 99 years
Investment Opportunities
Free Zones
Free Zone Rankovce
Area Size: 40 ha;
Corridor 8
Free Zones Skopje 1 & 2
Area Size: 145 + 95 ha;
E-75 Highway;
Next to the Int’l Airport
Free Zone Tetovo
Free Zone Stip
Area Size: 95 ha;
Distance from Skopje - 35 km
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 Kicevo
Area Size: 30 ha
Free Zone Gevgelija
Free Zone Struga
Area Size: 30 ha;
Next to the Int’l Airport;
170 km from Durres port
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)
Thank You!
Darko Angelov
Ambassador of Macedonia to Hungary
Embassy of the Republic of Macedonia
Andrássy út 130-1, 1062 Budapest
Tel: +36 1 33 60 510
e-mail: [email protected]
web: www.investinmacedonia.com