Technological and Industrial Development Zones (TIDZ) in North Macedonia are specialized areas that offer favourable conditions for investing in advanced and innovative industries. These zones are designed to attract domestic and foreign investments. Special focus is on high technologies, production capacities and research and development activities. TIDZs are of vital importance for the economic development of the country and for stimulating new jobs, innovation and competitiveness in the global market.
Before making an investment decision in the TIDZ, companies must conduct a detailed analysis of all aspects of their investment. Basically, One of the most critical steps in this process is consulting with tax advisory experts, who can assist in assessing tax incentives and financial obligations related to the investment.
Conditions for investing in TIDZ in North Macedonia
Investors who want to invest in Technological and Industrial Development Zones in North Macedonia must meet certain conditions:
- Type of company and activity: companies that want to invest should be legal entities with activities in areas such as high technologies, innovations, production processes, technological development, etc. Companies that join the TIDZ can engage in manufacturing activities or in the development of new technologies and innovations, but must meet the minimum investment required for that zone.
- Technological orientation: Investments should focus on the development of new technologies, industries, or products with high added value potential. Moreover, prioritizing innovation can significantly enhance competitiveness and long-term growth. This may include automation, advanced manufacturing processes, or innovations in sectors such as information technology, biotechnology, and electronic devices.
Benefits offered by the Technological and industrial development zone
According to the Law on TIDZ in North Macedonia, they offer numerous benefits for investors. This makes this country attractive for investment.
Fiscal incentives
- Exemption from profit tax in the first 10 years from the start of operations creates a strong financial basis for investors, allowing them greater profits and greater opportunities for reinvestment. The government designed this measure to stimulate new businesses, encourage the growth of the local economy, and reduce the fiscal burden in the initial stages of development.
- Exemption from income tax for newly employed people represents additional support for investors who create new jobs, which has a double benefit – encouraging employment and reducing business costs in terms of wages and contributions.
- Exemption from customs duties on the import of equipment and materials for production is an important benefit that reduces the initial investment in capacities and technology. This allows investors to focus on business development without incurring additional import costs.
- The turnover of goods and services in technological industrial development zones, except for turnover intended for final consumption, is not subject to taxation with value added tax. The authorities exempt the import of goods into technological industrial development zones from value-added tax, provided that the goods are not released for free circulation or intended for final consumption.”
To ensure the optimal utilization of these tax incentives, investors should consider tax advisory services.
Infrastructure support
Investors in TIDZs benefit from already built infrastructure that includes:
- modern roads,
- electricity,
- water supply,
- sewage and
- internet connections.
This minimizes the need for additional investments in basic infrastructure.
- Support from the state and institutions: The government and TIDZs offer various forms of support. Not only do they provide assistance for training and advanced training, but they also grant exemptions from fees for the development of construction land. Furthermore, they assist with participation in the costs of constructing a building of up to 500,000 euros.
- Localization and logistics opportunities: TIDZs are located near important transportation networks. This allows investors to optimize their logistics processes and reduce the costs of transporting goods.
Duration of opening a company in the TIDZ
The process of opening a company in the Technological and Industrial Development Zone is not only significantly simplified but also remarkably fast. As a result, investors can establish their businesses more efficiently and start operations sooner. On average, the entire process can take from 2 to 3 weeks after submitting all documents. Applicants must submit documents to the Central Registry of the RSM, which includes:
- Investment approval – Companies submit project plans for investment and approval is obtained from the competent bodies within a few weeks.
- Company registration – The process for registering a company in the TIDZ is simple. Applicants submit the necessary documents to the appropriate institutions
Expected Investment Costs in TIDZ in North Macedonia
The costs of investing in the TIDZ vary depending on the type of investment, but usually include:
- Land lease price – Land in the zone is provided under certain lease conditions. The price depends on the size of the land and location.
- Construction of infrastructure and facilities – Investors need to cover the costs of constructing production and administrative facilities. Additionally, they must finance the connection of these facilities to energy and water networks.
- Equipment procurement – Businesses incur costs for purchasing technology and equipment used in production processes.
- Administrative costs – These costs include legal and consulting services, administrative fees for registration and issuing permits.
Conclusion
Technological-Industrial Development Zones (TIDZ) in North Macedonia represent a significant opportunity for companies striving for growth and innovation. The combination of tax incentives, infrastructural support, and streamlined procedures provides a solid foundation for investor success.
For more detailed information and practical advice on investing in TIDZ, as well as other tax-related matters, feel free to reach out to us. Our team is available to answer your inquiries and provide the necessary guidance.
