Property Taxes and Fees in North Macedonia for Expats

Published on April 28, 2026 and written by Cyril Jarnias

North Macedonia offers a relatively favorable tax environment for expatriates, with competitive tax rates. However, it is essential to understand the local tax system well to optimize your situation. Here is a comprehensive overview of taxation in North Macedonia for expatriates.

An attractive tax system for businesses and individuals

The Macedonian tax system is characterized by relatively low tax rates, making it an attractive destination for expatriates and foreign investors. Here are the main taxes to know:

Personal income tax: A flat rate of 10% applies to most income (salaries, rental income, capital gains, etc.). This flat rate greatly simplifies taxation for individuals.

Corporate income tax: The standard rate is also 10%, one of the lowest in Europe. Simplified regimes exist for small businesses.

VAT: The standard rate is 18%, with reduced rates of 5% and 10% on certain goods and services.

Local taxes: They vary by municipality but generally remain moderate. The main one is property tax.

Social contributions: They amount to approximately 28% of gross salary, shared between the employer and the employee.

This competitive tax system aims to attract foreign investment and stimulate the local economy. For expatriates, it offers the opportunity to benefit from favorable taxation compared to many European countries.

Tax returns: simplified formalities

Tax formalities in North Macedonia are relatively simple for individuals, thanks in particular to the flat tax rate. Here are the main points to remember:

Annual return: Tax residents must file a tax return by March 15 of the following year. Non-residents only declare their Macedonian-source income.

Withholding tax: For employees, tax is generally deducted directly by the employer. A return is still mandatory.

Tax payment: It can be made in a lump sum or through quarterly installments for certain types of income.

Online filing: The electronic filing system is increasingly used, simplifying procedures.

Supporting documents: Keep all your tax documents for at least 5 years, the period during which the tax authority can conduct audits.

For expatriates, it is recommended to hire a local accountant, at least for the first year, to ensure you fully understand and meet all tax obligations.

Golden tips for optimizing your expatriate tax situation

Here are some recommendations to make the most of the Macedonian tax system as an expatriate:

Plan your tax status: Carefully assess whether you will be considered a tax resident or non-resident. This can have a significant impact on your overall taxation.

Take advantage of tax treaties: If your home country has a treaty with North Macedonia, use it to avoid double taxation.

Optimize your income: The structure of your income (salary, dividends, capital gains) can influence your taxation. Consult an expert to optimize your situation.

Invest locally: Certain investments in North Macedonia may offer attractive tax benefits.

Declare foreign accounts: Remember to declare your foreign bank accounts to stay compliant.

Plan for retirement: Inquire about social security agreements between your home country and North Macedonia to optimize your long-term situation.

Stay informed: Tax legislation evolves regularly. Keep up to date with changes that could affect you.

Property tax: a local tax not to be overlooked

If you are considering buying real estate in North Macedonia, it is important to take property tax into account. Here are the main points to know:

Tax rate: It generally ranges between 0.10% and 0.20% of the property’s cadastral value.

Value calculation: The cadastral value is determined by local authorities and may be lower than the market value.

Payment: The tax is generally due in two annual installments.

Exemptions: Certain categories of properties or owners may qualify for partial or total exemptions.

Reassessment: The cadastral value is regularly updated, which may lead to an increase in the tax.

For expatriate property owners, it is recommended to thoroughly research the local specifics of property tax, which can vary by municipality.

Taxation in North Macedonia offers many advantages for expatriates, with competitive tax rates and relatively simple formalities. However, as in any foreign country, it is crucial to understand the local system well and remain compliant with all tax obligations. Do not hesitate to consult local experts to optimize your situation and fully benefit from the opportunities offered by this economically developing country.