Macedonia at a Glance

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Macedonia at a Glance

• Area 25,713 km2
• Population 2.1 million
• Road network of 9,205 km
• Railway network of 900 km
• Two Pan-European corridors
• East-West corridor 8 and
• North-South corridor 10
• Two international airports Skopje and Ohrid

Location and connections
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Macroeconomic Data
Positive
2005
2004
2006
GDP (USD bil)
5.77
5.368
6.20
4.0
Real GDP Growth ()
3.8
4.1
GDP per capita, USD
2.641
3.024
3.208
0.5
- 0.4
3.1
Inflation ()
3.097
2.793
3.668
Imports (USD Mil)
2.040
1.673
2.366
Exports (USD Mil)
-1.120
-1.057
- 1.057
Trade Balance (USD Mil)
MKD / EUR
61,3
61,3
61,2
MKD / USD
49,3
49,4
50,8
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Why Macedonia?
Available, CompetitiveWorkforce 370/mo
gross Flexible University Training
Excellent Infrastructure Cross-point
ofcorridors 8 10 Green customschannel Larges
t Wi-Fi Hotspot!
Decisive Government Agency for Foreign
Investments 2 Ministers for FDI Minimizedins
titutionalrisks
FiscalBenefits European flat tax heaven Free
Economic Zones Free trade to 650mil market
Higher Profits Increased Competitiveness
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Business Environment

• Market of 650 million consumers via
• - 7 bilateral Free Trade Agreements
• - 2 multilateral Free Trade Agreements
  with EFTA
• and CEFTA countries
• - Stabilization and Association Agreement
  with EU
• One stop shop for company registration (3days)
• (Authorized institution - Central Registry)
• Approved credit rating by Standard and Poors
  (May 2006)
• gt long-term foreign currency BB,
  outlook Stable
• gt long-term local currency BBB- ,
  outlook Stable
• Upgraded credit rating by Fitch ratings (June
  2006)
• gt from BB with positive outlook to BB
  with stable outlook
• Ongoing reforms Regulatory Guillotine

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FDI Policy

• National treatment of foreign investors
• 100 foreign ownership of a company allowed
• No restrictions for foreign investment regarding
  the sectors of economic activity
• No restriction for repatriation of profits
• Republic of Macedonia is member of MIGA, since
  1994

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Young, Dynamic Workforce

• 45 of population under 30
• High intellectual capital
• 18 of graduates in technical fields
• 10 increase in BA, 15-18 in MA and PhDs
• 3 state owned and 2 private universities
• Multiple vocational high schools in each city
• Excellent language skills
• English, French or German are compulsory
• 62 study English
• 370/month Average gross salary
• Tailor-made training programs
• through Vocational Schools or Universities

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Unbeatable Fiscal Benefits in Europe

• 10 Corporate Personal income among lowest in
  Europe
• Flat 12 through 2007
• 0 Tax on reinvested profit
• Double taxation and investments protection
  treaties signed with many European countries
• Zero tax for operation in a Free Economic Zone
• Real estate taxes at 2 - 5
• VAT at 18, with 5 on specific items

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Free Economic Zones And Technology Parks In
Macedonia
Free Economic Zone Skopje
Location and connections

• Total area intended for development
• and building 140ha, fully fenced in
• 1km from Corridor 10 highway
• 2km from Skopje Airport
• 250km to port of Thessalonica, Greece
• 500m from the nearest Railway station
• 7km from Skopje City Center
• 30km border with Serbia

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Investment Incentives in the Free Economic Zones
And Technology Parks In Macedonia

• Special incentives for leading
• multinational companies to include
• training costs and up to 500.000
• towards building costs
• Land lease for up to 75 years at
• attractive concessionary rates
• No cost for building permits
• Benefit package for eligible investors
• will be approved within 10 days

• 0 corporate tax for 10 years, 10 thereafter
• 5 personal income tax for
• 5 years, 10 thereafter
• 0 VAT and customs duties
• Free connection to piped LPG, electricity, water
  and sewage

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A Dozen Investment Opportunities in Macedonia

• Automotive Components
• Information Communications Technology (ICT)
• Agribusiness and food processing industry
• Healthcare Products
• (Pharmaceuticals and Medical Devices)
• Clothing, Textiles and Leather

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Who is in the country?

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At your service

• One-stop shop and project management approach
• Linking companies to Greenfield and Brownfield
  opportunities
• VIP Investment tour
• Locations
• HR Companies, construction, real estate, tax
  advisory and consulting
• Universities and Reference Company visits
• Navigate the legal requirements
• Ensure success!

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In Brief Key Investors
Benefits
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www.investinmacedonia.com
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AGENCY FOR FOREIGN INVESTMENTS OF THE REPUBLIC
OF MACEDONIA
Nikola Vapcarov 7 1000 Skopje Republic of
Macedonia
Tel [phone] Fax [phone]
e-mail fdi_at_investinmacedonia.com web
www.investinmacedonia.com