North Macedonia Tax Calculator 2026

North Macedonia uses a flat tax system since January 1, 2023. A single rate of 10% applies to all types of income: employment income, self-employment income, royalties, rental income, capital income, capital gains, and other income. Exception - gambling winnings are taxed at 15%. For salaries, the 10% applies after deducting the 28% employee social contributions and the personal exemption of MKD 10,932 per month. This is one of the simplest and most attractive tax systems in Europe, making tax calculation straightforward.

Yes, if you spend 183 days or more in North Macedonia during a tax year, you become a tax resident and must pay taxes on worldwide income. The country is actively developing a digital nomad program with minimum income around €1,500/month, offering a 1-2 year visa with extension options. Non-residents pay tax only on Macedonian-source income. Important: 10% income tax is among Europe's lowest, making the country attractive for remote workers.

Total mandatory social contributions are approximately 28% of gross salary. Employee contributions: pension and disability insurance 18.8%, health insurance 7.5%, unemployment insurance 1.2%, additional health insurance 0.5% - totaling around 28%. All contributions are withheld from the employee's gross salary; employers pay nothing on top. Maximum monthly contribution base is 16 average salaries (about MKD 1,106,256 per month). No contributions are due on the difference above this threshold.

Individuals are entitled to a personal exemption of MKD 10,932 per month (2026), deducted together with social contributions from salary before calculating tax. Additional deductions: for dependents and family members (children, elderly parents), education expenses (including tuition and textbooks), medical expenses. For self-employed: tax base for royalties and intellectual property is 90% of gross income. Rental income also allows deductions.

Public Revenue Office (PRO) prepares annual tax return for taxpayer no later than April 30 of the following year. Taxpayer must confirm accuracy or correct the return by May 31. If taxpayer doesn't confirm or correct by May 31, delivered return is considered confirmed. Fiscal year is calendar year. Employers withhold tax and contributions from salaries.

Attention: cryptocurrencies are in a legal gray area. Central Bank previously declared cryptos illegal, but situation is evolving. Country is working on regulating crypto exchanges by 2025-2026 aligned with EU MiCA framework. If declared, crypto gains are taxed as capital gains at 10%. Mining is considered business activity. Trading mostly done through offshore platforms. Consult tax professional recommended.

Corporate tax is flat 10% - one of Europe's lowest. This makes North Macedonia very attractive for business. No progressive rates - all companies pay 10% regardless of profit size. Capital gains for companies taxed at standard 10%. Dividends subject to withholding tax. Country has double taxation treaties with several nations. Very competitive and simple tax system for businesses.

Dividends are taxed at flat 10% rate for both residents and non-residents. This is withholding tax deducted by company upon dividend payment. For non-residents, rate may be reduced under double taxation treaties. North Macedonia has tax treaties with several countries. Interest for non-residents also taxed at 10%, royalties at 10%.