Personal Income Tax 2026 — North Macedonia
Since January 1, 2023, North Macedonia applies a flat tax system of 10% for most income types. This is one of the simplest and lowest tax rates in Europe, making the country attractive for entrepreneurs and workers.
Personal Income Tax 2026
Since January 1, 2023, North Macedonia applies a flat tax system of 10% for most income types. This is one of the simplest and lowest tax rates in Europe, making the country attractive for entrepreneurs and workers.
Flat Rate 10%
Salaries and all income from employment, including pensions, remuneration of management body members, salaries of officials and athletes.
Income from business activities, registered agricultural business, professional and intellectual services (doctors, lawyers, notaries, consultants, engineers, accountants).
Income from intellectual property rights. Tax base is 90% of gross income. Effective rate 9%.
Income from lease and sub-lease of movables and immovable property, equipment, vehicles, and other property.
Capital Income
Interest income taxed at 10%. Tax base is calculated interest amount. Exceptions: interest on government and local government bonds, public loans.
Dividends from Macedonian and foreign companies taxed at flat 10%. Withheld upon payment.
Capital gains from sale of real estate, securities, equity shares, investment fund shares. Tax base is 90% of realized gain. Exemption for securities held >2 years.
Gambling Winnings
Higher rate of 15% applies to gambling winnings. Exception: winnings up to 5,000 Macedonian denars not taxed.
Tax Residency
Residents of North Macedonia taxed on income earned in country and abroad. Resident is person present in country 183+ days per year.
Non-residents pay tax only on income derived from Macedonian territory.
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Social Security Contributions
North Macedonia's mandatory social insurance system is regulated by the Law on Mandatory Social Insurance Contributions. Employers are obligated to calculate, withhold from employees' gross salary, and pay contributions to respective funds.
03Business Taxation
North Macedonia offers one of Europe's most competitive tax systems with flat 10% corporate income tax. This attracts foreign investment and promotes business development.
04VAT and Other Taxes
North Macedonia's VAT system applies standard rate of 18% with preferential rates of 5% and 10% for certain goods and services. Inheritance, gift, and property taxes also apply.