Company Formation & Tax in North Macedonia
One of Europe's simplest low-tax regimes — the DOO, a flat 10% on both corporate and personal income, and fast one-stop registration.
North Macedonia is an EU candidate with one of the region's most straightforward tax systems — a flat 10% on both corporate and personal income — and a genuine one-stop registration process that can complete in a few days. Foreign investors can own and run a company outright.
Choosing an entity
The standard vehicles are the DOO (multi-member private limited company) and the DOOEL (single-member), both requiring €5,000 minimum share capital; a simplified PDOO can be founded with as little as €1, in exchange for setting aside a quarter of annual profit to a reserve until it reaches the standard capital level. Registration runs through the Central Registry one-stop system, which simultaneously handles tax and other registrations and issues the company's identification number. Tax is administered by the Public Revenue Office (UJP). There is no residency requirement for owners or directors.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Corporate income tax | 10% |
| VAT (standard) | 18% |
| VAT (reduced) | 5% / 10% |
| VAT registration threshold | MKD 2,000,000 (~€32,500) |
Corporate income tax is a flat 10% — one of the lowest headline rates in Europe — and personal income tax is also a flat 10%. VAT is 18% standard, with reduced rates of 5% and 10%; registration becomes mandatory once turnover exceeds MKD 2,000,000 (about €32,500). Withholding tax of 10% generally applies to dividends, interest and royalties paid to non-residents, reducible under double-tax treaties. The denar is the local currency, and the country's VAT framework is progressively aligning with EU standards as part of accession.
Frequently asked questions
What is the corporate tax rate in North Macedonia?
A flat 10% (and personal income tax is also a flat 10%).
How much capital do I need for a DOO?
€5,000 for a DOO or DOOEL; the simplified PDOO can be founded with as little as €1, subject to a mandatory profit reserve.
What is the North Macedonian VAT rate?
18% standard, with reduced rates of 5% and 10%; registration applies above MKD 2,000,000 (about €32,500) turnover.
Official sources
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rules and thresholds change. Confirm against the Public Revenue Office (UJP), or with an advisor, before acting.
Set up in North Macedonia with confidence.
ARM Management advises international companies on North Macedonian entity formation, registration and tax compliance, alongside wider Balkan and EU structuring. Begin with a confidential conversation.