Vodic Za Investitori ENG 2015 Web - 02

FROM THE AMERICAN PEOPLE
YOUTH EMPLOYABILITY SKILLS NETWORK

Град Скопје
CITY OF SKOPJE
GUIDE FOR INVESTORS
Skopje, 2015
City of Skopje
Proposer: Koce Trajanovski, The Mayor of the City od Skopje
Preparation: Sector fot Local Economic Development
Representative: Slobodan Kosev, Head of the Sector for Local Economic Development
Design and print: Evropa 92
Skopje,2015
This publication has been financed by the American

people, through the United States Agency for
FROM THE AMERICAN PEOPLE
International Development – USAID Macedonia, within
YOUTH EMPLOYABILITY SKILLS NETWORK
the Youth Employability Skills Network (YES Network)

Project , implemented by the Education Development Center (EDC). The authors’ views expressed
in this publication do not necessarily reflect the views of the United States Agency for International
Development or the United States Government.
Table of contents
Forewords..................................................................................................................................................6
1. Profile of the Republic of Macedonia....................................................................................................7
2. Profile of the City of Skopje..................................................................................................................8
2.1. Geographic data........................................................................................................................8
2.2. Demographic data.....................................................................................................................9
2.3. Economic and investment climate.............................................................................................9
2.3.1. Economic situation in the Republic of Macedonia........................................................9
2.3.2. Investment benefits in the City of Skopje ..................................................................10
3. Opportunities for investment in the City of Skopje.............................................................................11
3.1. Automotive industry................................................................................................................11
3.2. Information and Communication Technologies .......................................................................12
3.3. Health, medicine equipment and pharmacy............................................................................12
3.4. Agribusiness and the food processing industry .......................................................................13
3.5. Textile industry........................................................................................................................13
3.6. Metals and metal products......................................................................................................13
3.7. Film industry...........................................................................................................................13
3.8. Chemical industry....................................................................................................................14
3.9. Energy sector...........................................................................................................................14
3.10. Construction............................................................................................................................14
3.11. Tourism....................................................................................................................................14
4. Successful foreign investments in the city..........................................................................................15
5. Conditions for doing business............................................................................................................15
5.1. Types of companies in the Republic of Macedonia...................................................................15
5.2. Procedure for establishing a company.....................................................................................15 3
5.2.1. Work visas/work permit ............................................................................................17
5.2.2. Access to information on potential partners and suppliers.........................................17
5.3. Taxes........................................................................................................................................18
5.4. Institutions that support investments.....................................................................................19
5.4.1. Agency for foreign investments.................................................................................19
5.4.2. Directorate for technological industrial development zones......................................20
5.5. City of Skopje investment-supporting policies.........................................................................20
5.5.1. Fund for Innovations and Technology Development (FITD)........................................20
5.5.2. Employment-supporting measures...........................................................................21
5.5.3. State aid stipulated with the current legal acts of R.M...............................................21
5.6. Banks and financial institutions...............................................................................................22
5.7. Labor market...........................................................................................................................23
5.7.1. Education...................................................................................................................23
5.7.2. Activity of the population..........................................................................................25
5.7.3. Average salary in the Republic of Macedonia.............................................................25
5.7.4. Expenditures of employers.........................................................................................27
6. Infrastructure.....................................................................................................................................28
6.1. Road infrastructure..................................................................................................................28
6.2. Railway infrastructure.............................................................................................................29
6.3. Airports...................................................................................................................................29
6.4. Maritime traffic........................................................................................................................30
6.5. Telecommunications................................................................................................................30
6.6. Energy.....................................................................................................................................30
6.7. Oil and gas pipelines................................................................................................................30
6.8. Water supply............................................................................................................................31
6.9. Construction permit cost..........................................................................................................31
7. Locations for investments in the City of Skopje..................................................................................32
7.1. Locations for greenfield investments.......................................................................................32
7.1.1 Technological industrial development zone – TIDZ 1 Skopje...........................................32
7.1.2 Technological industrial development zone – TIDZ 2 Skopje...........................................32
7.2. Locations for brownfield investments......................................................................................33
8. Useful addresses for investors............................................................................................................35
Annex 1: Investment locations in the City of Skopje.................................................................................36
List of tables
4 Table 1. Taxes in the Republic of Macedonia.............................................................................................18
Table 2 Duty rates in the Republic of Macedonia......................................................................................18
Table 3 Banks with branch offices in Skopje.............................................................................................22
Table 4 Savings houses in Skopje..............................................................................................................23
Table 5 Students who finished secondary education by school preparation.............................................24
Table 6 Active population according to education....................................................................................25
Table 7 Population activity rates..............................................................................................................25
Table 8 Calculated amount of 50% of the average monthly salary per employee.....................................26
Table 9 Annual average of expenditures per employee............................................................................27
Table 10 Distances and prices of transport of a 20-tonne truck from Skopje.............................................28
Table 11. Cost for preparation of construction land / expressed in Eur/м2................................................31
Table 12 Cost of premises in the City of Skopje.........................................................................................31
Table 13 Locations for brownfield investments on the territory of the City of Skopje...............................34
Dear investors,
The profitable locations and high-quality and educated workforce available to Skopje are going to
have a direct contribution to the growth and development of your company. The favorable business
environment and infrastructure, as well as the lowest taxes in Europe will additionally enhance your
productivity and at the same time reduce your operational costs.
By choosing Skopje as your future business and investment destination, you will have chosen the best
partner in the heart of the Balkans, to take care of you and simultaneously guide you through the
investment process. In order to accelerate your activities and to ensure the normal functioning of your
business, my team amd I will work directly with the municipalities that comprise the City, as well as with
the competent bodies of the central government. As your activities grow, so will our engagement and
timely recognition and fulfillment of your true needs, all with the goal to ensure even faster growth and
development, while observing the code of confidentiality and the highest standards of business ethics. I
sincerely hope that this Guide will provide you with sufficient information and necessary data to invoke
your interest and to make you seriously consider the possibility for the City of Skopje to be your future
investment destination, i.e. part of your business activities.
Johnson Controls, Johnson Matthey, T-Mobile, EVN, Arcelor Mittal, LUKOIL and many others have already
chosen us. Check why.
5
We are expecting you.
Yours Sincerely,
Koce Trajanovski
Mayor of the City of Skopje
1. Profile of the Republic of Macedonia
Official name Republic of Macedonia

Capital city Skopje
Area 25.713km2
Other larger towns: Куманово, Битола, Тетово, Велес, Прилеп, Штип
Political system Multiparty system of parliamentary democracy
Assembly with 123 Members of Parliament with a 4-year mandate;
Members of Parliament are elected on party lists in elections in six electoral
districts
Executive government: president with a five-year mandate;
Prime minister and ministers elected in the Parliament by members of
parliament elected by the people
Population 2.1 million
Average age 35
41% under the age of 30
Average life expectancy 74.6 years
Workforce 938,294
Literacy 96.1%
Climate Moderate continental in the north, Mediterranean in the south
Hot and dry summers
Relatively cold and snowy winters
Average temperature 12.7°С
Average high temperature 17.75 °С
Average low temperature 5.5 °С
National currency Macedonian denar
1 euro = 61.5 denars
6
CITY OF SKOPJE GUIDE FOR INVESTORS
2. Profile of the City of Skopje

Population 506,926 citizens
GDP per capita 314,531 MKD
GDP as % of the National GDP 45.6%
Surface area 571km2
Location 21°26' east geographic longitude and 42° north geographic latitude
Altitude 240m 7
Climate Average annual temperature 12.4°C.
Long hot dry summers, Relatively cold winters with many foggy days
Monthly salary 506EUR average gross salary
Unemployment rate 29.3%
2.1. Geographic data
The City of Skopje, as the capital city of the Republic of Macedonia, represents the most important
administrative, economic, cultural and educational center in the country, and has high potential and
favorable conditions for establishing and running of businesses.
The City of Skopje, as a separate unit of the local self-government is comprised of ten municipalities:
Aerodrom, Butel, Gazi Baba, Gjorche Petrov, Karposh, Kisela Voda, Saraj, Centar, Chair and Shuto Orizari.
In the City of Skopje, the largest municipality by area is Saraj, with surface of 229km2, whereas Chair is
the smallest one with 4 km2.
The City of Skopje is situated in the central part of the Skopje basin. It stretches over 1818 km², or 9 km in
width and 23 km in length.
The Skopje basin, in which the City of Skopje is situated, stretches in the upper part of the Vardar River.
The Skopje basin is surrounded by mountains Vodno, Karadzica, Osoj, Zheden and Skopska Crna Gora. The
basin stretches north-west to south-east. The surface of the basin is 2,100 km2.
The highest point of the basin is on the Jakupica Mountain (2,450m), whereas the lowest part lies at an
altitude of 225 to 340m. The deep gorges and the high and wide cliffs provide for good communication
conditions with the neighboring areas.
Macedonia abounds in great natural riches, represents a cradle of culture and the birth land of Mother
Teresa. Macedonia represents a crossroad of civilizations, a unique mix of the antique and the modern, a
country which offers a rich multicultural experience.
The main symbol of the capital city, Skopje, is the medieval fortress from where one can see the city
center, as well as the Stone Bridge which arches across the Vardar River. Both key landmarks date back
to the time of the Byzantine emperor Justinijan I, when Macedonia was a principal district of the Eastern
8 Roman Empire. The Stone Bridge was built by the Turks on the site of a Roman bridge. The bridge gives
access to the old part of the city, where the Turkish bazaar is. It represents one of the best preserved
specimens of Ottoman urban architecture in the Balkans. In the Turkish bazaar, one can visit the Daut
Pasha Hamam (public bath, 15 century, now and an art gallery), the Kurshumli Han (16 century), the
Clock tower (16 century), etc.
The rich natural and cultural heritage makes the City of Skopje an attractive destination for tourists and
investors from all corners of the world.
Picture 1. Location of the City of Skopje in R. Macedonia
2.2. Demographic data

According to the data of the State Statistical Office of the Republic of Macedonia from the 2002 Census,
the total number of citizens of the City of Skopje, according to the 2004 administrative and territorial
organization is 506,926 citizens.
The density of the population varies in different parts of the City, and on average it is 888 inhabitants /
km2.
The greatest part of the population in the City of Skopje is of Macedonian ethnic origin (67%), and
then come the Albanians (20%), the Turks and the Roma. The remaining nationalities in the City are
represented by a smaller percentage.
Regarding the age structure of the population, the age group of 20-24 includes the greatest number
of inhabitants of the City of Skopje, followed by the age groups of 30-34 and 50-54 years of age. 9
This datum represents a great comparative advantage of the city in terms of the available working
population which can be hired as workforce by the future investors.
2.3. Economic and investment climate
2.3.1. Economic situation in the Republic of Macedonia
The growth of the Gross Domestic Product – GDP, which represents an important indicator for the
economy in a country, in the year 2014 was 3.8%, and in the year 2015, in the first quarter registers a
decline and is 2.2%1.
The Republic of Macedonia is a signatory of several free trade agreements, including:
1) Central European Free Trade Agreement (CEFTA 2006)
CEFTA 2006 was signed on December 19th, 2006 in Bucharest, and it entered into force on November
22nd, 2007. Agreement signatories are: the Republic of Macedonia, Albania, Bosnia and Herzegovina,
Croatia, Moldova, Montenegro and UNMIK for the Kosovo territory. Apart from liberalization of trade of
goods, CEFTA 2006 opens up space for increased cooperation among its members in the following areas
as well: trade of services, public procurement, investments and protection of intellectual property.
2) EFTA Agreement
EFTA is a multilateral agreement concluded between the Republic of Macedonia and the Swiss
Confederation, the Kingdom of Norway, the Republic of Iceland, and the Principality of Liechtenstein, on
June 19th, 2000 in Zurich. In November 2001, the Parliament of the Republic of Macedonia ratified the
Agreement (Official Gazette of RM, No. 89/2001), and it was enforced on May 1st, 2002. The Agreement
provides an asymmetric approach to the trade in industrial and agricultural foodstuffs, in the interest
of the Republic of Macedonia. Thus, Macedonian industrial products are freely, duty-free, exported on
the markets of EFTA countries, responding to the needs of 12 million citizens. On the other hand, trade
in industrial products in case of import from the EFTA countries in Macedonia shall be performed in
different transition periods, individually for every EFTA country, in a period of four, seven and nine years.
10
In the tenth year of application of the Agreement, exchange in both directions shall be performed duty-
free.
3) Free Trade Agreement between the Republic of Macedonia and Ukraine
The Free Trade Agreement between the Republic of Macedonia and Ukraine is a legal framework which
regulates the bilateral trade cooperation between the two countries, and is applicable as of September
10th, 2001.
4) Free Trade Agreement between the Republic of Macedonia and the Republic of Turkey
The Free Trade Agreement between the Republic of Macedonia and the Republic of Turkey regulates the
trade between the two countries and is applicable as of September 1st, 2000.
Source: NBRM, Basic economical indicators for Republic of Macedonia

1
5) Stabilization and Association Agreement

The Stabilization and Association Agreement with the European communities and their countries
– members (SAA) is the existing legal framework which regulates the relations of the Republic of
Macedonia and the European Union.
The Republic of Macedonia signed the SAA on April 9th, 2001 in Luxemburg, and the Agreement entered
into force on April 1st, 2004. The sections of SAA regulating trade and trade issues were enforced on June
1st, 2001, with the special Interim Agreement on Trade and Trade-related Matters between the Republic
of Macedonia and the European Community. This agreement provided for asymmetrical approach to
trade with industrial and agricultural foodstuffs in the interest of the Republic of Macedonia. Thus,
Macedonian industrial products are freely, duty-free, exported to EU markets, and trade in industrial
products imported from the EU, according to projection, shall be gradually liberalized in a period of 10
years. In the tenth year of application of the Agreement (2011), exchange in both directions shall be
performed duty-free.
2.3.2. Investment benefits in the City of Skopje

The total number of registered companies in the City of Skopje is 39,391, of which 2,736 were
established by foreign nationals or foreign legal entities. The established 125 subsidiaries and 91
representative offices of foreign companies present in the region confirm the increased interest in
investment and commercial representation.
The key advantages of the City of Skopje compared to similar cities from the neighboring countries are:
• The advantageous geographic position and the developed logistical and transport infrastructure
enable easy and fast access to European markets,
• Access to skilled workforce at competitive prices in comparison with the neighboring countries,
• Access to workforce with a command of several languages, 11
• Opportunities for using the developed networks of suppliers in several industrial clusters,
• Opportunities for using investment capital from European rural development support funds,
• The City of Skopje is in the Central European Time Zone (GMT +1), and it is a good destination
for outsourcing of services to local companies by companies from Europe. The time zone enables
simple communication with the staff from the country of origin,
• The developed banking sector and the presence of banks providing electronic payment allow easy
management of transactions in a short period of time,
• The estimated collaterals in case of using a real estate mortgage provides a high level of security
for the assets,
• Access to areas for growing and processing of organic products.
Investors in the Technological Industrial Development Zones enjoy special benefits:
• 0% tax on profits in the first 10 years (further 10%, only on distributed profits)
• Up to 10 years of exemption from income tax payment
• Exemption from the obligations for Value Added Tax and customs duties on exported products
except for products considered as final consumption products
• Concession of land use for 99 years with minimal annual fees
• Free connection to water supply, sewage and electricity infrastructure.
Investors interested in greenfield or brownfield investments outside of TIRZ in the Skopje region have an
option to.
• invest in municipal investment zones (Butel, Gazi Baba, Gjorche Petrov)
• utilize public private partnership instruments for gaining access to agricultural land in Saraj
• invest in luxury residential housing in Karposh municipality or residential areas in Kisela Voda
municipality.
12
3. Opportunities for investment in the City of

Skopje
The progress in the political and macroeconomic stability and the conditions for constant growth in the
Republic of Macedonia and the City of Skopje have contributed to the creation of favorable conditions
for investing and starting of businesses and attracting numerous domestic and foreign investments. The
progress in the country has been recognized by the World Bank Report on Doing Business in Macedonia.
The key advantage of Skopje planning region for investors interested in investing in the processing
industry is the availability of a large number of highly skilled unemployed and unemployed with
secondary education who are experienced in large processing facilities which do not operate anymore,
such as the Kozhara tannery, Godel, Ohis, FAS 11th October and others. Special incentives per employee
may apply for investors who would hire a significant number of employees (over 50) in the Technological
Industrial Development Zones.
According to the Agency for Foreign Investments and Export Promotion of the Republic of Macedonia,
there are opportunities for investment in the following sectors:
3.1. Automotive industry

The City of Skopje, with its strategic location and proximity of similar industries in Central and Eastern
Europe and Turkey, as well as the duty-free access to the European market, offers opportunities which
should be used, especially in conditions when it is exceptionally important to achieve a competitive
advantage on the uncompromising automotive industry market. The auspicious conditions for cost
reduction, the educated workforce, and the exceptionally favorable measures for supporting the
industrial zones make the City of Skopje an ideal location for companies interested in starting a business
or relocating their businesses.
13
Indicators for the successful functioning of the automotive industry are the following:
• Fifty companies operate in this area in the Republic of Macedonia
• There is a tradition of engineering and production
• Educated workforce
• The production of automotive parts for Zastava, Serbia, started in 1960
• Companies primarily cater for postproduction
• Companies present nowadays in Skopje TIRZ 1 and TIRZ 2: Johnson Matthey; Kemet; Teknohose;
Van Hool; Visteon; Protek; Mensan Otomotiv; Mediterr Shock Absorbers as well Cap –Con and
Baracuda FX.
• The markets are: Europe, Russia, Turkey, Africa, USA
• Most of the companies have quality management systems ISO 9001/TS 16949
3.2. Information and Communication Technologies
The Macedonian information technologies market had a significant growth of 7.7% in 2009, reaching
164.5 million euro. Over the next years, there was also continuous growth. This growth has been
motivated by the great investments of the government and the telecommunication companies in the
information and internet technologies, the continuous spending in the finance sector, the decrease of
the price of IT equipment and the reducing of VAT for equipment. A large number of the companies from
this sector are located in the City of Skopje.
The advantages of investing in such businesses are the following:
• The fastest-growing ICT market in the Adriatic region.
• The best telecommunication networks in the region – 100% digital system.
• Leading hardware and software producers have local branch offices for sales and services
• Professional and cheap labor force
• Initiated procedures for standardization and quality assurance
• Government measures for support
3.3. Health, medicine equipment and pharmacy
There are many institutions and services related with health, medicine and pharmacy in the City
of Skopje. The City of Skopje and the Republic of Macedonia in general have a well established
pharmaceutical industry and they supply a large number of countries in the region and in the world
with generic products. Except for that, there is a highly qualified and educated workforce, the salaries
are significantly lower in comparison with the other European countries, and medicinal tourism is in
constant growth. It is especially important for investors in these sectors that the regulation connected
with investments in the health sector is very favorable.
14
• The existing pharmaceutical industry exports to more than 30 countries in the world
• A strong educational system with a large number of graduated pharmacy and medicine students
• Favorable legislative climate
• Signed contracts with world’s leading pharmaceutical companies
• Available locations in the industrial and free economic zones
• Tradition of production
3.4. Agribusiness and the food processing industry
Agricultural production and the agribusiness are the most important economic sectors in Macedonia.
The auspicious natural conditions, the tradition, the knowledge and skills create a range of opportunities
in the agricultural sector.
The agribusiness sector in Macedonia is one of the fastest growing sectors, with more than 10% of
growth over the past 3 years. By introducing the European standards for food quality and safety,
opportunities for expanding towards new markets were created for this sector. The advantages for
investing in such businesses are the following:
• The combination of continental and sub-Mediterranean climate
• Ecological production practices
• Excellent access to regional markets
• High reputation of high-quality products
The highest investment potential resides in the following subsectors:
• Fruit and vegetables: production, storage, processing industries (logistical centers)
• Wine production
• Production of sheep and goat cheese
3.5. Textile industry
The excellent connections and the proximity of the City of Skopje as the capital of Macedonia to the
fast-growing textile industries in Central Europe, Eastern Europe and Turkey contribute to a geographical
advantage for investments in this sector as well. The geographical connectedness and the proximity to
these markets contribute to low distribution expenses and timely delivery of products.
The clothing industry has the greatest contribution in the economy of Macedonia and is one of the most
important industries with regard to the number of companies and the number of employees in this
sector. This type of industry offers the investors a large number of benefits:
• Favorable conditions for establishing and running of a business
• High quality workforce and low expenses for salary
• Good geographical location and connections with European markets 15
• Favorable economic conditions
• High reputation of Macedonian textile producers on the European Union markets
• Great flexibility and willingness to adapt to the requirements of the foreign markets
• Exceptionally favorable products quality and costs ratio
• Up-to-date equipment
• Proximity to European markets
• Recommended investments in ready-made clothing and knitting
3.6. Metals and metal products
Investments in the metal and metal products industry are advantageous from the aspect of export
potential. With the increasing of the foreign investments the export of these producst increases as well.
This sector comprises of 9202 active business entities and employes more than 16 0003 people and is
almost entirely owned by foreign investors. The main products include rolled sheet steel, aluminum
profiles, ferrous alloys, lead, zinc, copper, gold and silver.
3.7. Film industry

Macedonia offers great natural treasures; it is a cradle of culture and the birth land of Mother Teresa.
Macedonia represents a crossroad of civilizations, a unique mix of the antique and the modern, a country
which offers a rich multicultural experience.
The huge cultural, historical and natural treasure of the city make Skopje a very interesting and
auspicious location for film-making.
Other advantages for the development of the film industry in Skopje and in Macedonia in general are:
• Low taxes
• 280 sunny days per year
• Low operation costs
• Unparalleled landscapes and a range of excellent locations for filming (valleys, mountains,
fortresses, rivers, lakes, waterfalls, an island, a small desert, etc.)
• Available production companies and staff.
The Macedonian Film Agency, with its seat in Skopje, offers different types of stimulating measures for
making films in Macedonia.
3.8. Chemical industry

Macedonia has a substantial chemical industry with a well-developed capacity for the production of basic
chemicals, synthetic fibers, polyvinyl chloride, as well as detergents, fertilizers, polyurethane foams and fibers.
16 In addition to opportunities for greenfield investments in the City of Skopje, existing capacities for chemicals
production, including cosmetics products, have good growth potential which foreign investors can benefit from.
3.9. Energy sector

The energy sector development is a priority of Macedonia. There are numerous investment opportunities
in this sector, and the Government encourages investment in both traditional and renewable energy
projects.
Data important for investing in this sector:
• National strategy based on diversification of sources and types of energy use
• Focus on completing the strategy for using renewable energy sources (measuring wind potential,
Source: State statistical office, Industry 2009 - 2014
2
Source: State statistical office, Statement –Active population in the Republic of Macedonia, Results from the Survey for workforce, II quarter year 2015
3
preparation of a feasibility study)

• Reliability study on the electro-energy sector and connection of windmill power plants
• Potential for use of solar energy: annual solar radiation amounts to 1385 kWh/m2
• Climatic characteristics – continental climate with hot and dry summers and high intensity of
solar radiation
3.10. Construction
Macedonia has a well-developed construction industry recognized internationally for its skilled
personnel and use of modern technology. Construction labor from Macedonia is used in Central and
Eastern Europe, the Middle East and Russia. The largest construction companies are located in the City of
Skopje and most construction activities take place there.
The growth of the real-estate prices in the central city areas, the positive assessment of the collateral by
commercial banks, as well as the Government measures for subsidized interest rates for loans for youth
with monthly earnings up to 900 euro are expected to lead to significant investments in the construction
sector.
3.11. Tourism
A large number of monuments and landmarks are located in the City of Skopje, making it a true treasury
of culture and art. From the cultural-historical heritage in Skopje, the archaeological site Skupi, the
Kale fortress, the Aqueduct, the Old Bazaar in the City of Skopje, numerous churches and monasteries
especially stand out for their tourist potential. The Skopje 2014 project is of exceptional importance
for the city, in the frames of which over 70 monuments, fountains, sculptures and new buildings of
institutions have been realized.
Cultural heritage, in combination with the moderate climate, the beautiful landscapes and the 17
unparalleled hospitality are preconditions for the City of Skopje to have a high potential of becoming a
top destination for foreign visitors. Taking into consideration the potential for tourism development of
the City of Skopje, investments are in particular expected in tourism-related businesses.
4. Successful foreign investments in the city
As a result of the auspicious geographical and business climate, the interest of foreign investors in the
City of Skopje has increased over the past years.
Part of the important investments in the city are: Johnson Matthey (United Kingdom), Mobilkom
Austria (Austria), EVN (Austria), Deutsche Telecom (Germany), Van Hool (Belgium), Societe Generale
(France), Johnson Controls (USA), KEMET Corporation (USA), the National Bank of Greece (Greece),
Hellenic Bottling Company S.A. (Greece), QBE Insurance Group Limited (Great Britain), Mittal Steel (The
Netherlands), Duferco (Switzerland), Titan Group (Greece), Coficab (Tunisia), Mensan Otomotiv (Turkey),
Endava (Great Britain), Istem Medical (Turkey), KPME (Ukraine), Teknohose (Italy), Prodis (Russia), VPTEX
(The Netherlands), Protek (Russia), Telekom Slovenije (Slovenia), Steiermarkische Bank und Sparkassen
AG (Germany), Prokredit Holding AG (Germany), Hypo Alpe Adria Leasing (Austria), Nova Ljubljanska
Banka (Slovenia), ERA Group (USA), Soravia (Austria), ODW Electric (Germany).
18
5. Conditions for doing business

5.1. Types of companies in the Republic of Macedonia
The Company Law is the basic law that regulates the business activity in Macedonia, and it defines the
types of companies, the procedures and regulations for their establishment and operation. Foreign
investors receive the same rights and privileges as Macedonian citizens. The law is fully harmonized with
the EU directives and regulations.
In the City of Skopje, there are numerous local legal representative offices which are specialized in the
sphere of trade law and are willing and available to provide assistance.
5.2. Procedure for establishing a company

The procedure for establishing a company in the Republic of Macedonia is fairly simple, by visiting only
one counter, through the one-stop-shop system for registering a company at the Central Registry of the
Republic of Macedonia in Skopje, but also through 28 electronically integrated branch offices located
throughout Macedonia. Foreign companies have been also able to register companies electronically
starting from 2012. This reform enables registration of companies directly from the investor’s country,
thus eliminating the need for being physically present in Skopje and in Macedonia in the process of
registration of the company.
The time needed for registration of a company is four hours. In practice, it can take up to 1-2 business
days the most. This significantly decreases the administrative barriers and costs for starting a business.
The fee at the Central Registry for registering a Limited liability company is around 40 euro. Apart
from this fee, other minimal additional costs are possible, such as the costs for sworn translation and
certification of the necessary documents by a notary public, which costs around 3 to 5 euro per page.
19
The necessary documentation for registering a company at the Central Registry is the following:
• Application for registration;
• A contract for the company, or a statement establishing the company, including all addenda
including the power of attorney for the authorized person, certified by a notary public;
• Copy of passport or ID if a physical person is the founder, of another document for determining the
identity which is valid in the person’s country, proof for registration if a legal entity is the founder;
• Evidence from a bank authorized for doing payment operations that each founding member has
paid at least a third of the monetary deposit;
• Evidence that at least half of the basic capital has been paid;
• If non-monetary deposits are deposited – the contracts which determine and execute them;
• The decision for appointing of a manager;
• Statement by each manager of the company that they accept the appointment – certified by a
notary public;
• The decision for appointing members of the supervisory board;
• Evidence for ownership in which an entry in a public registry book for registering immovable
property has been made, and if movable property is introduced, for which by law a requirement
for registering has been stipulated, evidence for ownership over the movable property;
• Permit or another act of a state body or another authorized body if that liability has been
stipulated with a law for registering the company in the company registry;
• Statement of the legal representative of the legal person, or a statement of the natural person,
certified by notary, i.e. submitted evidence that there are no legal obstacles for them to be the
founder of the company as stated in Article 29 of the Company Law;
• Statement in which the activities undertaken in order to properly establish a company are listed
and in which the founders claim that they founded the company in accordance with the law
and that the data contained in the addenda (the documents and the evidence) which they are
attaching to the application for registration of the establishing of the company into the company
registry are truthful and in accordance with the law. The statement can be given in writing or
in an electronic form through the one-stop shop system pursuant to the Law on electronic data
and electronic signature, the Law on the Central Registry of the Republic of Macedonia and the
regulations for the one-stop shop system. It shall be certified by a notary public, whereas it shall
not be certified when it is submitted electronically through the one-stop shop system. (Article 32
from the Company Law);
• The manager, or the persons who according to the contract for the company, are authorized to
represent it, deposit their signatures – certified by a notary public. The foreign nationals can
deposit a signature certified by the competent authority in the country of their nationality. The
20 signature shall not be certified by a notary public if it is submitted electronically pursuant to the
Law on electronic data and electronic signature;
• The addenda may be submitted electronically pursuant to the Law on electronic data and
electronic signature and the Law on the one-stop shop system and on the company registry and
the registry of other legal entities
The founding capital of the company consists of the sum of the deposits of the co-founders. The deposit
of the co-founder can be monetary and non-monetary. The non-monetary deposits are fully deposited
before the submission of the application for registration of the establishing of the company.
The minimal capital necessary for a limited liability company, registered as direct foreign investment,
during one year from the establishing is 5,000 euro monetary contribution on temporary accounts in
some of the national banks.
For activities in certain fields such as pharmacy, banking, insurance and educational activities, the
process for registration of a company is followed by licensing by the relevant authorities. The central
registry employees are trained to guide the newly registered companies to the appropriate bodies or
institutions for their licensing.
5.2.1. Work visas/work permit

Foreign citizens can easily be employed in the Republic of Macedonia, after getting an appropriate visa
or permit from the Ministry of Foreign Affairs, i.e. the diplomatic-consular representative offices abroad.
Nationals of EU member-states, as well as nationals of the state-parties to the Schengen agreement may
enter the Republic of Macedonia presenting a valid identity card issued by the competent authorities of
the EU member-states or of the state-parties to the Schengen agreement.
Issuance of visas to foreign citizens
• Visas shall be issued only at the embassies or consulates of the Republic of Macedonia abroad;
• The validity of the passport or other travel document of the applicant has to be minimum 3 (three)
months;
• The application may be submitted to the embassy/consulate of the Republic of Macedonia by post
or by fax, in which case the applicant must collect the visa in person;
Using the list of diplomatic and consular missions of the Republic of Macedonia abroad, which can be
found at the Ministry of Foreign Affairs, the visa applicants can choose the most convenient embassy/
consulate to submit the visa application.
Foreign nationals in the Republic of Macedonia can obtain two types of permits:
• Work permit and
• Residence permit.
5.2.2. Access to information on potential partners and 21
suppliers
With the development of the principles of transparency and availability, the Government enables
economic entities to have access to substantial and accurate data on potential business partners. The
Central Registry hosts an easily accessible database of companies, which is connected with the European
Business Register.
Unambiguous identification of companies is provided by granting a unique registration number of
registered entities, a code and title of the registered main activity according to the National classification
of activities, a code of the organizational form of the registered entry, a provision of a unique tax
number, and entry of a bank account chosen by the registered entity.
5.3. Taxes
In accordance with the general process of decentralization in the Republic of Macedonia, one of the
key dimensions is the fiscal decentralization, i.e. fiscal autonomy in the competence of the local self-
governments.
Apart from transfers from the budget of the central government, which are payable in accordance with
the Law on financing of the units of the local self-government, part of the other laws and the supporting
regulations also enable the units of the local self-government to have financial autonomy in the
determining of the height of the following taxes and fees on the local level::
• Immovable property, presents and heritage tax (Law on property taxes)
• Utilities fees for connection and use of all types of communal infrastructure (Law on communal
fees), and
• Administrative fees (Law amending the law on administrative fees)
Table 1 Taxes in the Republic of Macedonia

Taxes Tax rates
TIDZ (TIRZ) Outside of TIDZ (TIRZ)
Profit tax 0% for the first 10 years 10%
Personal income tax 0% for the first 10 years 10%
Value added tax 0% 18%
Property tax 0% 0.1% - 0.2%
Excise tax 0% 5% - 62%
Table 2 Duty rates in the Republic of Macedonia

Product Duty rates
TIDZ (TIRZ) Outside of TIDZ (TIRZ)
22
Raw materials 0% Up to 15%
Equipment 0% 5% - 20%
No duty or value added tax are paid for imported raw materials, equipment or construction materials.
The height of the locally defined taxes and fees, the efficiency in their defining and issuing of permits
and documentation for starting of new businesses, as well as the expansion of the activity or the
scope of the existing businesses (companies) are some of the key factors of the advantageous business
ambience in the City of Skopje.
5.4. Institutions that support investments

5.4.1. Agency for foreign investments
The Agency for foreign investment and export promotion of the Republic of Macedonia was established
in order to secure increased influx of foreign direct investments and export promotion, thus motivating
economic growth and development in the Republic of Macedonia. Among other services, the Agency
offers the following services to investors:
• provision of highly professional services to investors in the process of pre-investment, investment
and re-investment, and highly professional services related to export promotion;
• incorporating an identification strategy in the frames of the investment and export promotion
strategy, in those sectors which represent the best perspectives for maximizing the net economic
benefit for Macedonia;
• provision of services to investors and exporters;
• professional presenting of sector-specific and operational benefits which the Republic of
Macedonia offers to investors and exporters, in the electronic and printed media;
• development and implementation of innovative and more active promotional appearances at the
target markets;
• establishing of an effective partnership between the public and the private sector for extensive
promotion of the Republic of Macedonia and developing a database of target companies and
monitoring systems in order to assist the identification and ensuring the investment;
• promotion of the regions in the Republic of Macedonia and utilizing every opportunity for
motivating foreign investors to use products and services of the Macedonian companies;
• analyzing the conditions for investing and export and suggesting amendments to the legal
framework in terms of improving the investment and export climate; 23
• assessing and motivating development initiatives such as stimulating the growth of greenfield
investments and technological industrial development zones in order to increase competitiveness
of the Republic of Macedonia as a location for investment;
• concluding a contract on behalf of the Government of the Republic of Macedonia, as state aid
provider, in which the state aid provided to the user of the zone is determined, pursuant to the
Law on technological industrial development zone, regarding which contract the Government of
the Republic of Macedonia has previously provided clearance;
• provision of informative services to exporters from the Republic of Macedonia regarding external
trade, export procedures, duties, taxes and the legal regulation, as well as assistance in the
provision of all administrative licenses and permits;
• securing of information for access to international markets for the purpose of assisting exporters in
finding foreign business partners;
The Agency has its branch offices in USA, United Kingdom, Belgium, The Netherlands, Germany,
Switzerland, Italy, Poland, Sweden, Serbia, Turkey, Albania, Austria, Russia, France, Norway, China.
5.4.2. Directorate for technological industrial development

zones
As a representative authority of the Government of the Republic of Macedonia, the Directorate for
Technological Industrial Development Zones manages the Technological Industrial Development Zones
in the Republic of Macedonia. The Government of the Republic of Macedonia has established four
Technological Industrial Development Zones: TIDZ Skopje 1, TIDZ Skopje 2, TIDZ Shtip, and TIDZ Tetovo.
Simultaneously, the Government of the Republic of Macedonia is working on the development of
seven more Technological Industrial Development Zones on the territory of the Republic of Macedonia
intended to achieve a balanced economic development in the whole region.
The Directorate for Technological Industrial Development Zones strives to become an international
business hub of South-Eastern Europe by providing world-class infrastructure supported by highest
quality services and incentives unparalleled anywhere in the region and wider. The benefits offered by
the TIDZ are:
100% foreign ownership, 0% tax and customs duties, no labor restrictions, no municipality taxes,
symbolic land lease rate and direct State Aid in amount up to 500,000 EUR are only one segment of the
proposed package of benefits that provides the most competitive investment destination in the region
and beyond.
The Directorate for TIDZ is establishing a service center within each of the Technological Industrial
Development Zones, which, through the administrative units of the Directorate for TIDZ and the Customs
Authority of the Republic of Macedonia field offices, provides administrative consultation and services
and efficient clearing through customs for the Users of the Zones.
24
The Directorate for TIDZ undertakes the development of the Zones as its proud mission, and adjusts
according to the needs of the investor, and in the practice strives to raise the quality of the services to the
highest level possible in order to guarantee success for the investor.
5.5. City of Skopje investment-supporting policies

5.5.1. Fund for Innovations and Technology Development (FITD)
The Fund for Innovations and Technology Development promotes innovations by securing additional
sources of financing for the innovations, in order to build a competitive knowledge-based economy,
which will contribute to the creation of jobs.
The priorities of the Innovation Fund are:
• improved access to financial services for innovations and technological development;

• promoted and enhanced innovation activity.
FITD achieves its goals through instruments of co-financed grants for start-up, spin off companies
and innovations, co-financing grants and conditional loans for commercialization of innovations, co-
financing grants for technology transfer, technical assistance through business-technology accelerators,
technical assistance for companies, equity and mezzanine investments. The FITD works on the
development of acceptable financial instruments to support innovation and technology development.
The FITD builds partnerships with other relevant stakeholders for the accomplishment of common goals.
5.5.2. Employment-supporting measures

The employment strategies and policies of the Government of the Republic of Macedonia contribute to
the realization of the determinations stemming from the Global Jobs Pact4 and the European Strategy
for smart, sustainable and inclusive growth – Europe 2020.
The operational plan for active employment programs and measures for 2014 includes employment
programs and measures with the aim of activating the labor market and creating jobs through
stimulating the demand on the labor market, harmonizing the supply and demand of workforce in
accordance with the need of the labor market, improving the supply of workforce, as well as decreasing
of the grey economy. Macroeconomic, microeconomic and employment policies have been determined.
The operational plan programs include the following programs and measures:
1. Program for self-employment
2. Program for financial support of legal entities (micro and small enterprises and artisans) for
opening of new jobs
3. Program for subsidized employment
3.1 Subsidizing employment 25
3.2 Subsidizing employment of children without parents
3.3 Subsidizing employment of persons with disabilities
3.4 Subsidizing employment of youth up to the age of 29
4. Program for subsidizing the usufructuary of state-owned agricultural land.
5. Program for preparation for employment
5.1 Training with known employer
5.2 Training with known employer with subsidy
5.3 Training for meeting the required profiles on the labor market
5.4 Training for advanced IT skills
5.5 Practical work (internship)
Adopted by the International Labor Conference, at the 98th session, Geneva, 19th June 2009
4
5.6 Education for starting a business
5.7 Motivational training cycles
6. 6. Survey for job vacancies
7. Socially beneficial work program
8. Pilot program for employment of representatives of the Romani ethnic community
9. Pilot program – incubator for artisans
So as to have a successful implementation of the employment programs/measures foreseen in the Work
program of the Government of the Republic of Macedonia, the Operational annual plans define the type
of the programs and the active employment measures, the target groups, the necessary means and the
sources of the means, as well as the concrete activities and deadlines for the subjects responsible for
their implementation.
5.5.3. State aid stipulated with the current legal acts of R.M.
The Law on state aid of the Republic of Macedonia stipulates the opportunities for state aid for
development of the regions and small and medium-sized companies in the following forms:
Regional aid
(1) Aid for regional development can be granted in the form of subsidies, soft loans, state
guarantees or tax incentives.
(2) The aid intensity may be up to 50% of the investment or at the amount of salaries for new jobs
over two years period.
(3) The investment and the newly created jobs must be maintained for at least five years.
(4) Conditions and procedure for granting regional aid will be determined by the Government of
the Republic of Macedonia.
26 (5) The maximum limit of the aid under paragraph (2) of this article is subject to revision within a
four years period from the date of entering into force of the Interim Agreement for trade and
trade issues between Macedonia and the European Communities.
Assistance for small and medium-sized enterprises

The assistance aimed at promoting the activities of small and medium-sized enterprises by supporting
investments in liquid and illiquid assets are up to 30% of the favorable investment or the amount of
salary for a two years period. It can be compatible, and the intensity of total provided aid shall not
exceed 75% of investment costs.
The assistance aimed at providing advisory services to small and medium enterprises, which is not a
continuous activity, and the aid supporting the company’s first participation in fairs and exhibitions can
be compatible up to 50% of the cost of participation.
5.6. Banks and financial institutions

The City of Skopje is the seat of a large number of banks and financial institutions owned by citizens and
legal entities from the Republic of Macedonia, but also owned by foreign nationals and companies.
Table 3 Banks with branch offices in Skopje

Bank Ownership Website
Eurostandard Banka AD Skopje Nikolche Petrovski, Zoran Nikolovski www.eurostandard.mk
Alfa Bank AD Skopje Alfa Bank, Greece www.alphabank.mk
Central Cooperative Bank AD Skopje Central Cooperative Bank, Bulgaria www.ccbank.mk
Halkbank AD Skopje 4 Halk Bankasi, Turkey www.halkbank.mk
Capital Bank AD Skopje Alfa Group, Bulgaria www.capitalbank.mk
Komercijalna Banka AD Skopje Maja Stevkova Shterieva, M.A., www.kb.mk
Bulgaria, Hari Kostov, Ilija Iloski
Stater Banka AD Kumanovo Central Cooperative Bank, Bulgaria www.staterbanka.mk
(93.72%)
Macedonian Bank for Support of Assembly of the Republic of www.mbdp.mk
Development Macedonia
NLB Tutunska Banka AD Skopje NLB Group, Slovenia www.nlbtb.mk
Ohridska Banka AD Skopje Société Générale, France www.ohridskabanka.mk
Poshtenska Banka AD Skopje Macedonian post office www.postbank.mk
Procredit Bank AD Skopje Procredit Group, Germany www.procreditbank.mk
Sparkasse Bank AD Skopje German public bank, Germany www.sparkasse.mk
Stopanska Banka AD Bitola Pavle Cvetanovski, www.stbbt.mk
Natasha Nestorovska www.stbbt.mk www.stb.mk
Stopanska Banka AD Skopje National Bank of Greece, Greece www.stb.mk
TTK Banka AD Skopje Dragoljub Arsovski, Peter Heinz www.ttk.mk
Molders
27
Univerzalna Investiciona Banka AD Skopje First Investment Bank, Bulgaria www.unibank.mk
Ziraat Bank Ad Skopje Ziraat Bankasi, Turkey www.ziraatbank.mk
The largest number of banks active in the region are present in Skopje as well and actively participate in
the financing and the offering of loan products for business entities in the city.
Table 4 Savings houses in Skopje

Savings house Website
Fulm www.fulm.com.mk
Mozhnosti www.moznosti.com.mk
Horizonti www.horizonti.org.mk
Mak-BS- Skopje www.makbs.com.mk
The savings houses Fulm, Mozhnosti, Horizonti and Mak-BS-Skopje also have their branch offices in the city.
5.7. Labor market
The Republic of Macedonia and especially Skopje, as its capital, is the home of educated, highly qualified
and ethical workforce which is available to investors. The average monthly paid gross-salary per
employee in June 2015 ammounts 32 309 denars, respectively 527 euros5. (this sum includes: net salary,
personal tax and social contributions for pension and health insurance). Minimal salary is defined for
each occupation with collective agreements.
The educational standards of the higher education technical institutions are the same as in the Western
European countries. Employees support the continued education and lifelong learning and successfully
complete specialized trainings. The government also supports the process of continuous training of the
workforce, thus helping investors.
The recently adopted Labor Law, prepared in line with the European Union standards, enables conditions
for greater flexibility and offers the opportunities for diverse and flexible agreements, as well as flexible
working hours. Also, the reforms in this area include the introduction of training programs, support to
entrepreneurship, and improving the business climate in the country in general.
Collective agreements, concluded at the state level, regulate employment rights, as well as the
responsibilities and liabilities of the employers and the employees.
The Law on employment and work of foreigners regulates the employment of foreign nationals in the
Republic of Macedonia. According to the provisions of this law, foreign nationals or persons without a
nationality can be employed in Macedonia after securing a work permit. The Employment Agency of the
Republic of Macedonia issues the work permit upon the submission of a request by the employer.
5.7.1. Education
In the educational system of Macedonia, primary and secondary education are mandatory, and the
28
English language is studied from the first grade. Apart from the standard secondary schools, there are
also vocational schools where students acquire education in most diverse vocations. There are four state
and a large number of internationally recognized private universities and colleges. Both vocational
schools and universities offer training programs in accordance with the needs of the companies investing
in Macedonia. Over the past several years, on average, 6% of the GDP of the country are invested in
education, an average higher than the one in most countries part of the Organization for Economic Co-
operation and Development (OECD).
Each year, approximately 80% of the students who finish secondary education enroll in a faculty.
In Macedonia, 45% of the population is under the age of 30, which represents an offer of a young,
educated and specialized workforce.
State statistical office, Statement: Average monthly gross-salary, August, 2015

5
The City of Skopje, as the capital of the Republic of Macedonia, represents the most important
educational center which has in its offer most diverse educational institutions.
In the City of Skopje, there are 100 state primary schools, 31 secondary schools, one state university with
22 faculties, 9 private universities, 6 other higher education institutions and 3 international universities.
In 2014 in Macedonia have graduated 9863 students, of whom 7 746 at from the state university, 2 094
from the private universities and 23 from the religious faculties6 .
The profile of students graduated from the state university is presented in the following chart:
Picture 2 Students graduated from the state university in Skopje in 2014
The number of regular secondary schools in the City of Skopje totals 31, in which in the academic year
2013/2014 26,998 students enrolled organized in 1,006 classes.
The number of students who finished the secondary school is given below, by the vocation they have
been trained in.
Table 5 Students who finished secondary education by school preparation 29
*Source: State Statistical Office
State Statistical Office, Graduated students at the Schools and faculties, 17.06.2015
6
From the chart, one can see that more than 60% of the students who finished secondary education in
the City of Skopje have been trained in vocational education:
• Health stream
• Textile and leather processing stream
• Agricultural-veterinary stream
• Forestry-wood processing stream
• Economic-legal and trade stream
• Catering-touristic stream
• Chemical-technological stream
• Construction-geodesy stream
• Construction stream
• Mechanical stream
• Traffic stream
• Electro-technical stream
• Automotive technology stream
• Food production stream
Furthermore, 5 private educational institutions offering curricula in more languages and different
degrees of education were identified with the analysis of the educational system, and they are:
1. Nova international schools – educational activities for children from 3 to 5 years, primary and
secondary education – English
2. QSI International School of Skopje – preschool, primary and secondary - English
3. 5th private high school - secondary education - Macedonian, Albanian and English
30 4. International high school – Skopje - secondary education - Macedonian and English
5. Private Yahya Kemal College – secondary education - Macedonian and English
Taking into consideration the aforementioned, it can be concluded that from the educational aspect, in
the City of Skopje there are no barriers for foreign and domestic investors.
5.7.2. Activity of the population

According to the data of the State Statistical Office, in the IV quarter of 2014, the active population in the
Republic of Macedonia totaled 916,416 persons, of whom 696,046 were employed, and 265,370 were
unemployed.
The activity rate in this period was 57.4%; the employment rate was 41.5%, while the rate of
unemployment amounted to 27.6%.
Table 6 Active population according to education

Active population according to education
Education Active population Employed Unemployed
2014/IV 2014/IV 2014/IV

Total 961 416 696 046 265 370
Without education 5 312 (2871) (2442)
Unfinished primary 20 490 13 521 6 969
education
Primary education 204 101 144 258 59 843
3-year secondary 88 751 59 066 29 685

education
4-year secondary 432 530 310 507 122 024
education
College education 23 981 18 824 (4796)
5 157 186 251 146 999 39 251
Higher education 186 251 146 999 39 251
Inclusive of 31 March 2015, 21,230 unemployed persons were registered at the Employment Service
Agency of the Republic of Macedonia in the City of Skopje. The following chart gives the structure of the
unemployed persons by education.
Picture 4 Structure of unemployed persons by education
31
The following table lists the rates of activity, employment and unemployment for the Skopje region for
20147.
Source: Statistical data base

7
Table 7 Population activity rates
Activity rate 55.3
Employment rate 39.1
Unemployment rate 29.3
5.7.3. Average salary in the Republic of Macedonia

According to the data from the State statistical office, the index of the paid average monthly net-salary
per employee, in June 2015, in regards to June 2014, is 103.7.
This increasing is due, primarily, to the increasing of the paid average monthly net-salary per employee
in the sectors: Arts, entertainment and recreation (23.6%), Other service activities (11.5%) and Mining
and rock extraction (8.6%).
Decreasing of the paid average monthly net-salary per employee, in regards to the previous month,
is noticed in the sectors: Professional, scientific and technical activities (7.0%), Supply with electrical
energy, gas, steam and air conditioning (7.0%) and Activities related to real estate (5.0%).
The paid average monthly net-salary per employee in June 2015 is 22 025 denars.
According to the data of the State Statistical Office, the calculated amount of 50% of the average
monthly salary per employee for the month of April 2015 at the sector level totals:
Table 8 Calculated amount of 50% of the average monthly salary per employee
01. Crop and animal production, hunt and related service occupations 9,771
02. Forestry and forest exploitation 11,886
03. Fishing and aquaculture 7,698
05. Mining of coal and lignite 14,339
32 07. Mining of metal ores 18,759
08. Other mining and quarrying 14,571
09. Support activities for mining 13,213
10. Manufacture of food products 12,206
11. Manufacture of beverages 15,501
12. Manufacture of tobacco products 14,538
13. Manufacture of textiles 9,381
14. Manufacture of wearing apparel 8,377
15. Manufacture of leather and related products 7,795
16. Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles 9,154
of straw and plaiting materials
17. Manufacture of paper and paper products 12,370
18. Printing and reproduction of recorded media 12,672
19. Manufacture of coke and refined petroleum products 11,010
20. Manufacture of chemicals and chemical products 20,451

21. Manufacture of basic pharmaceutical products and pharmaceutical preparations 27,983
22. Manufacture of rubber and plastic products 10,912
23. Manufacture of other non-metallic mineral products 19,032
24. Manufacture of basic metals 16,029
25. Manufacture of fabricated metal products, except machinery and equipment 14,957
26. Manufacture of computer, electronic and optical products 15,431
27. Manufacture of electrical equipment 12,442
28. Manufacture of machinery and equipment n.e.c. 11,867
29. Manufacture of motor vehicles, trailers and semi-trailers 11,117
30. Manufacture of other transport equipment 19,292
31. Manufacture of furniture 9,089
32. Other manufacturing 19,883
33. Repair and installation of machinery and equipment 14,796
35. Electricity, gas, steam and air conditioning supply 26,958
36. Water collection, treatment and supply 14,229
37. Sewerage 10,772
38. Waste collection, treatment and disposal activities; materials recovery 13,542
39. Remediation activities and other waste management services 6,445
41. Construction of buildings 11,337
42. Civil engineering 14,967
43. Specialized construction activities 14,007
45. Wholesale and retail trade and repair of motor vehicles and motorcycles 16,451
46. Wholesale trade, except of motor vehicles and motorcycles 16,488
47. Retail trade, except of motor vehicles and motorcycles 11,866
49. Land transport and transport via pipelines 12,309
51. Air transport 31,209
52. Warehousing and support activities for transportation 26,336 33
53. Postal and courier activities 16,842
55. Accommodation facilities 12,097
56. Food and beverage service activities 9,263
58. Publishing activities 16,265
59. Motion picture, video and television program production, sound recording and music publishing 18,308
activities
60. Broadcasting activities 16,030
61. Telecommunications 31,875
62. Computer programming, consultancy and related activities 30,949
63. Information service activities 23,096
64. Financial service activities, except insurance and pension funding 29,149
65. Insurance, reinsurance and pension funding, except compulsory social security 26,548
66. Activities auxiliary to financial service and insurance activities 28,111
68. Real estate activities 17,893
69. Legal and accounting activities 23,725
70. Activities of head offices; management consultancy activities 19,974
71. Architectural and engineering activities; technical testing and analysis 17,306
72. Scientific research and development 20,514
73. Advertising (commercials and propaganda) and market research 24,130
74. Other professional, scientific and technical activities 21,338
75. Veterinary activities 11,436
77. Rental and leasing activities 14,916
78. Employment activities 10,581
79. Travel agency, tour operator, reservation service and related activities 12,551
80. Security and investigation activities 9,147
81. Services related to building maintenance and landscape arrangement and landscape maintenance 9,523
activities
82. Office administrative, office support and other business support activities 12,905
84. Public administration and defense; compulsory social security 19,176
85. Education 16,305
86. Human health activities 19,312
87. Social work activities with accommodation 13,720
88. Social work activities without accommodation 12,073
90. Creative, arts and entertainment activities 15,885
91. Libraries, archives, museums and other cultural activities 15,088
92. Gambling and betting activities 12,071
93. Sports activities and amusement and recreation activities 13,093
94. Activities of membership organizations 24,264
95. Repair of computers and personal and household goods 16,668
96. Other personal service activities 11,797
34 The monthly personal exemption totals 7,320 denars.
5.7.4. Expenditures of employers

The monthly average of the expenditure of the employer per employee in the Republic of Macedonia
2008 was 26,523 denars8 . The highest monthly average of expenditures of the employer per employee
in the Republic of Macedonia is recorded in the sector financial intermediation and it totals 57,065
denars.
In 2008, the annual average of the expenditures of the employer per factually executed hour, in the
Republic of Macedonia totaled 173 denars. The total annual average of factually executed hours per
employee in the Republic of Macedonia totals 1,845 hours.
Source: State statistical office, Statement, Expenditures of employer per employee, 2010
8
Table 9 Annual average expenditures per employee

Mining and quarrying 444,389
Processing industry 252,277
Electrical energy, gas and water supply 490,371
Construction 251,506
Wholesale and retail trade, repair of motor vehicles and motorcycles and objects for personal use and 250,686
household use
Hotels and restaurants 240,457
Traffic, storage and communications 374,374
Financial intermediation 684,786
Real estate activities, leasing and business activities 362,300
Public management and security, compulsory social security 449,601
Education 338,175
Health and social work 341,852
Other communal, cultural, general and personal services activities 315,284
Average 318,273
6. Infrastructure
All roads in South-Eastern Europe cross in the Republic of Macedonia, which makes it an ideal transit and
distribution center for products for the European market. The developed road and railway infrastructure,
in combination with the small area of the country enables access to every inhabited place in Macedonia
in less than 3 hours.
The City of Skopje, as the capital of the country, has an excellent road, railway and airway connectedness
with all European countries.
35
6.1. Road infrastructure
The Republic of Macedonia is characterized by a well developed road network with total length of
14.199 km, including motorways, national roads, regional and local roads. The main axes of the state
road network are the two Pan-European corridors, Corridor VIII (east-west) and Corridor X (north-
south). The state continuously invests in its road infrastructure in accordance with the National
transport strategy, prepared by the Ministry of Transport and Communications, assisted by the EU. New
projects and maintenance of the network are done in accordance with the annual program for public
investments.
According to the current legislation, the Public Enterprise for State Roads is the authority responsible for
managing, construction, reconstruction, maintenance and protection of the state roads in the Republic
of Macedonia. At the moment, the total length of the road network in the country is
14,199 km9 , of which 259 km are classified as motorways, 908 km are national roads, 3,778 km are
regional roads, 553 km are international roads, and 9,513 are local roads.
Just like in other countries, in the Republic of Macedonia, the road transport has the largest share in the
total transport of goods and passengers. In the structure of goods transport which is done on the roads
in the Republic of Macedonia, the national transport dominates over international and transit transport.
Road transport also prevails over railway transport.
The road network in the Skopje region is consisted of: national, regional and local roads. The national
and regional roads have a total combined length of 361.46 km, of which 339.74 km with asphalt, 5.17
km are macadam roads, and the remaining 16.55 km are dirt roads or have not been opened.
Regarding the infrastructure, the City of Skopje is located at the axis of one of the most important
international traffic and communications corridors, the Pan-European Corridor 10 (north-south).
The table below gives an overview of the distances and the prices for transportation from the City of
Skopje to different destinations in the region and in Europe.
Table 10 Distances and prices of transport of a 20-tonne truck from Skopje

Destination Distance (km) Hours Borders From Skopje EUR
Kragujevac, Serbia 320 6 1 670
Pitesti, Romania 730 8 2 1,050
Budapest, Hungary 800 11 2 1,000
Gebze, Turkey 850 12 2 1,100
Ljubljana/Novo Mesto, Slovenia 950 15 3 1,000
Vienna, Austria 1,200 14 2 1,250
Ostrava, Czech Republic 1,300 16 2 1,550
Munich, Germany 1,370 17 2 1,350
36 Aksaray, Turkey 1,470 18 2 1,600
Milan, Italy 1,500 19 3 1,350
Stuttgart, Germany 1,600 19 2 1,450
Frankfurt, Germany 1,700 20 2 1,500
Cologne, Germany 1,900 24 2 1,550
Batilly, France 2,000 26 2 1,700
Statistical annual publication of the Republic of Macedonia, 2015

9
6.2. Railway infrastructure

The railway infrastructure in the Republic of Macedonia was established in 1873 with the first railway
track from Skopje to Thessaloniki in Greece. Today the railway network in Macedonia is about 900 km.
The railway network in Macedonia is connected to the north and to the south with the railway networks
of Serbia and Greece. The total length of the railway infrastructure of the Corridor VIII (east-west) is
around 306 km on the territory of Republic of Macedonia and 154 km (or 50%) of the railway line have
been constructed and operational. The remaining 89 km or 29% of the total length remain to be built
and to be connected with Bulgaria. 63 km or 21% of the total length of the link with Albania remain to
be built.
Railway traffic is managed by the public enterprise “Makedonski Zheleznici [Macedonian Railways]”, and
at the moment, the company is the sole provider of railway services in the country. The modernization of
the building of railway infrastructure is based on the national program and the three-year business plan
of the Public Enterprise MZh Infrastruktura Skopje.
The company has a significant park of its own wagons available, which enable:
• Conventional transport of goods in opened and closed wagons;
• Transport of bulk goods (wheat, triturated ore, etc.)
• Transport of liquid fuels in specialized wagons;
• Transport of goods in containers on special plateau wagons;
• Transport of goods in regular scheduled trains;
• Transport of special shipments;
• Transport of live animals;
• Transport of dangerous materials..
M.Zh.Transport has a container terminal in Skopje Tovarna, which has the appropriate technical 37
equipment, which enables the loading and unloading of loaded and empty containers.
Container transport can be done to every station of M.Zh.Transport, open for freight traffic if the loading
and unloading operations of the container are done on the wagon itself.
M.Zh.Transport offers logistical services in the area of conventional transport of wagons and containers
along the railways in Macedonia and abroad.
Through the Corridor 10 (Tabanovci – Gevgelija, on the Macedonian territory), in the south there is a
connection with the Thessaloniki port, and in the north there is a connection with the Balkan countries
and Europe.
6.3. Airports
There are two international airports in the Republic of Macedonia: in Skopje and in Ohrid. Through
these airports, Macedonia and the City of Skopje are connected with regular direct connections to
several larger European transport centers: London, Vienna, Rome, Zurich, Dusseldorf, Prague, Budapest,
Ljubljana, Zagreb, Belgrade, Istanbul, etc. The Turkish company “TAV” has been the new operator and
manager of the Macedonian airport system since 2008, following the granting of a 20-year concession
from the Macedonian government. Under the concession, “TAV” is to modernize the international
airports Alexander the Great in Skopje and St. Paul in Ohrid, and to build a new cargo airport in Shtip.
The proximity of the Alexander the Great Airport, which is at a distance of only 20 km, is of great
importance for the City of Skopje.
The Alexander the Great Airport, apart from transport of passengers, offers the following services as
well10:
• Cargo handling for passenger aircraft,
• Cargo handling for cargo aircraft,
• Road feeder service (RFS) for air and other cargo.
All these activities are carried out in accordance with IATA standards.
• Handling cargo and mail,
• Handling special shipments (DG, VAL, AVI, etc.).
• Document preparation,
• X-ray examination of goods,
• Customs control,
• Border inspection control,
• Servicing of transit shipments by truck/aircraft,
• other services by arrangement.
38 The Cargo Operations carries out logistics services before and after air transport (landside handling):
• Preparation of shipments for air transport,
• Customs warehousing,
• Repackaging of goods.
6.4. Maritime traffic
Macedonia is a land-locked country. The access to the neighboring ports is enabled through the roads
and railway links. The closest ports are in Thessaloniki, at about 100 km from the border crossing with
Greece in Gevgelija, and in Durres, at about 150 km from the border crossing with Albania in Struga.
Passenger transport exists on the Lake Ohrid with smaller ships, from 25 to 150 seats.
Source: http://skp.airports.com.mk/default.aspx?ItemID=433#sthash.5m3ib5JQ.dpbs (website of Alexander the Great Airport)

10
6.5. Telecommunications
The Macedonian telecommunications sector is considered as one of the most liberalized ones. At the
moment, landline telephone services are offered by eight companies, while mobile telephony is in constant
development. The presence of three mobile operators guarantees quality and availability of services.
Macedonia pursues international trends in the development of its Internet communications and enables
easy and fast Internet access via numerous Internet providers.
In order to provide telecommunication services and to realize telephone connections on the territory
of the City of Skopje, there is a developed and contemporary telecommunications network. The mobile
phone network on the territory of the city is fully covered by all mobile operators, and at the same time
there is internet access (cable, ISDN, wireless) on the whole territory.
6.6. Energy
In the City of Skopje and in Macedonia in general, there is a broadly developed network for distribution
and supply of electrical energy. EVN Macedonia is the company which conducts the distribution and
supply of electrical energy. In 2006, the company entered the Macedonian market as a part of the EVN
group. Energy sector development is a priority in Macedonia, especially taking into consideration the
fact that 70% of the technically available hydro-potential is open for current and future investors.
6.7. Oil and gas pipelines

Gas pipelines
The gas pipeline system, with a capacity of 800 million m³ annually, is part of Corridor 8. The length
of the main gas pipeline is around 98 km, and it runs from the border with Bulgaria to Skopje. The
distribution network already in place is 26 km long and the city network is 31.5 km long.
39
Planned development of the gas pipeline network in the Republic of Macedonia is centered on
constructing new facilities for the production of electric and/or heating power, including direct supply to
potential consumers, as well as upgrading the gas pipeline network in the region and beyond.
Oil pipeline
The Thessaloniki (Greece) – Skopje (Macedonia) 212.6 km oil pipeline is used for transport of raw oil
from the port of Thessaloniki to the Skopje refinery. The oil pipeline was built in 2002 along Corridor 10
and its capacity is 360 m³/h, which represents 2.5 million tons annually.
6.8. Water supply

The City of Skopje is supplied with spring water using the city water supply system and has a full
coverage with water supply network.
PE “Water Supply and Sewerage” is an enterprise which manages water supply and sewerage of waste
water in the City of Skopje, i.e. the main activities of the enterprise are: collection, treatment and supply
of water and removal of waste water.
6.9. Construction permit cost

When greenfield investment is considered, the purchasing land prices range from 1 Euro/m2 in rural
areas up to 1000 Euro/m2 when purchased from private owners, depending on location and type of
investment. In case of municipality or state ownership of the land, the bidding price starts from 1Eur/
m2. The investor must pay fees for connection to the communal infrastructure and water supply.
Table 11 Cost for preparation of construction land / expressed in Eur/м2

Municipality Zone Residential Commercial
building building
City of Skopje 1 (Centar, Karposh, part of Kisela Voda, part of 129 153
Aerodrom)
2 (part of K. Voda, part of Aerodrom, part of Gazi Baba, 113 137
part of Chair)
3 (part of Gazi Baba, part of Cair) 100 113
4 (part of G.Petrov, Shuto Orizari, part of Butel) 93 97
Butel suburban 2,5 10
Gjorce Petrov suburban 10 15
Saraj 1 Raovikj, Panicar 0 0

40
2 Bojane, Kopanica, Semeniste, Bukovikj, Gorna Matka, 5 8
Dorce, Gorno Svilare
3 Sisevo, Glumovo, Krusopek, Grcec, Rasce, Radusa, 8 11
Dolno Svilare
4 Saraj, Ljubin, Kondovo 10 15,5
*Source: Agency for foreign investments and export promotion.

Costs for commercial space lease in Skopje range from 10 euro to 12 euro per m2 per month, depending
on the type of the building and the location of the venue.
Table 12 Cost of premises in the City of Skopje

Purpose/Municipality (prices in EUR/m2) Karpos Centar Aerodrom Kisela Voda
Housing 97.6 97.6 65 65
Residential space 130.08 130.08 55.28 55.28
Commercial and business centers 97.6 90 81.3 73.2
Production facilities / halls 1 1 1 1
Public buildings 22.8 22.8 19.5 19.5
Sport and recreation 71.54 71.54 24.70 20.80
Infrastructural buildings 71.54 71.54 52 42.28
7. Locations for investments in the City of

Skopje
7.1. Locations for greenfield investments
7.1.1 Technological industrial development zone – TIDZ 1
Skopje
The total surface area of the TIDZ Skopje 1 is 140 hectares. TIDZ Skopje 1 occupies a first class location
- 10 km east of the capital Skopje, on the crossroad of the Corridors 8 and 10. TIDZ Skopje 1 has direct
highway exchange with highway E-871 and is just 3.3 km away from an E-75 Highway access road.
Alexander the Great International Airport is 10 km away from the TIDZ Skopje 1 (1 km distance by air). 41
The airport is suitable for passenger and cargo transport, as well as for intercontinental flights. The
nearest national rail station is in Miladinovci, at a distance of 6.5 km from the Zone. For the purpose of
maritime transport, the nearest sea port is in Thessaloniki, 220 km away from TIDZ Skopje 1.
Specifications of property
Location 10 km to the east of the City of Skopje
(at the crossroad of 140 хектари
Corridors 8 and 10)
Size 140 hectares
Ownership 100% state-owned
Municipality Ilinden
Type of land Construction land/Greenfield
Transport
Road network Direct access to E-871 highway
3.3 km distance from E-75 highway 10 km, меѓународен аеродром Александар Велики
(1 km воздушна оддалеченост)
Air traffic 10 km, international airport Alexander the Great
(1 km air distance) 220 km, Солун
Railway traffic 6.5 km, railway station Miladinovci
Maritime traffic 220 km, Thessaloniki
Utilities
Electricity provider: EVN Macedonia.
Electricity costs and tariffs for medium voltage users (denars) Medium Voltage Users
Measure Unit Tariff time 35kV 20 kV or 10 kV
or 6 kV
Power kW 1003.53 773.98
Energy kWh HT 2.95 3.25
LT 1.52 1.59
kVARh HT 0.77 0.71
LT 0.37 0.44
Water provider: PE Vodovod - Ilinden
The price of water is 48 MKD/m3, and 5% VAT is not applicable.
Water is bacteriologically clean and tested twice a month by the Institute for Health Protection.
Note: This price is determined by the Public Enterprise “Vodovod” of Ilinden Municipality.
42
Gas provider: Directorate for TIDZ
The price of gas is 29,277 MKD/Nm³, and 18% VAT is not applicable.
Note: This gas price is for October 2014, and it is revised every month by the Energy Regulatory
Commission of the Republic of Macedonia.
Telecommunications
Most of the telecommunication companies present on the Macedonian market offer their services in the
TIDZ Skopje 1.
The operators provide the following services:
· Voice services
· Data services
· Internet
· Additional services
7.1.2 Technological industrial development zone – TIDZ 2
Skopje
The total surface area of TIDZ Skopje 2 is 95 hectares. TIDZ Skopje 2 is located immediately right next to
TIDZ Skopje 1, 10km to the east of the City of Skopje, on the crossroad of the Corridors 8 and 10, only
4.6 km away from the access road to the E-75 Highway. Alexander the Great International Airport is
11 km away from the TIDZ Skopje 2 (2 km air distance). The airport is suitable for passenger and cargo
transport, as well as intercontinental flights. The nearest railway station is Miladinovci, which is located
7.8 km from the zone. For the purposes of maritime transport, the nearest sea port is in Thessaloniki, 220
km away from TIDZ Skopje 2.
Specifications of property
Location 10 km to the east of the City of Skopje (at the crossroad of Corridors 8 and 10)
Size 95 hectares
Ownership 100% state-owned
Municipality Ilinden
Type of land Construction land/Greenfield
Transport
Road network Direct access to E-871 highway
4.6 km distance from E-75 highway
Air traffic 11 km, international airport Alexander the Great
(2 km air distance)
Railway traffic 7.8 km, railway station Miladinovci
Maritime traffic 220 km, Thessaloniki 43
Utilities
Electricity provider: EVN Macedonia.
Electricity costs and tariffs for medium voltage users (denars) Medium Voltage Users
Measure Unit Tariff time 35kV 20 kV or 10 kV or
6 kV
Power kW 1003.53 773.98
Energy kWh HT 2.95 3.25
LT 1.52 1.59
kVARh HT 0.77 0.71
LT 0.37 0.44
Water provider: PE Vodovod - Ilinden
The price of water is 48 MKD/m3, and 5% VAT is not applicable.
Water is bacteriologically clean and tested twice a month by the Institute for Health Protection.
Note: This price is determined by the Public Enterprise “Vodovod” of Ilinden Municipality.
Gas provider: Directorate for TIDZ
The price of gas is 29,277 MKD/Nm³, and 18% VAT is not applicable.
Note: This gas price is for October 2014, and it is revised every month by the Energy Regulatory
Commission of the Republic of Macedonia.
Telecommunications
Most of the telecommunication companies present on the Macedonian market offer their services in the
TIDZ Skopje 2.
The operators provide the following services:
• Voice services
• Data services
• Internet
• Additional services
The detailed list of locations for greenfield investments is provided as addendum 1

to the Guide.
7.2. Locations for brownfield investments

The City of Skopje has a large number of locations available for interested domestic and foreign investors
44
in the City of Skopje. On the web page of the Agency for foreign investments and promotion of export
in the Republic of Macedonia (http://www.investinmacedonia.com/) exists a base with locations for
brownfield which regurarly is updated and where the latest data can be found.
Table 13 Locations for brownfield investments on the territory of the City of Skopje
Purpose Number of buildings Surface area of Total surface area (m2)
buildings (m2)
Industrial hall 1 930 9 710
Textile factory 1 / 2400
Wholesale market 1 / 70 000
Factory 1 / 3 339
Administrative building 1 / 43 145
Construction land and production 4 3 150 3 943

buildings, Lesnina
Struzanka textile factory One floor 13 21
Administrative building, AD Gazela 1 / 804
AD Mavrovo, service, workshop, 10 2045 2044
warehouse
AD Mavrovo Offices 5 / /
AD Mavrovo; car service, workshop, 10 9148 9148
garage
Mechos, administrative building / / 177
К-15 Production, administrative 1 / 262
building
Urban Group, administrative building, 1 142 961
hotel
AGD Tehnika, administrative building 1 / 939
Euro Aktiva, warehouse 1 3890 13420
Prvomajska, multi-purpose building 1 3800 3500
Maliot princ, multi-purpose building 1 2920 2920
Vuchko, multi-purpose building 1 3700 3500
Prototip, office premises 2 2855 /
Building, multi-purpose building 1 1500 400
Magistrala, multi-purpose building 1 1200 3500
Vizbegovo, multi-purpose building 1 1100 1850
Office space 1 168 /
Office space 1 721 721
Office space – exhibition room 1 427 1398
Office space – surgery 1 532 /
Tehnobravarija, office space, service 1 73 /
Former salon of MAZDA, 1 669 2138 45
Sales and servicing of cars 1 669 2138
State inspectorate for urban planning 1 1341 760
Office space / 222 /
Lottery of Macedonia, office space 1 / 26
House with a garden, housing space 1 213 901
Storage space 1 1641 1827
Office space, storage / 31 /
Office space with additional 6 1473 3792
warehouse halls
Mill, production facility 1 817 1972
Office space, apartments 1 54 /
Hemteks site 2 1478 5727
Storage space and production facility 10 28230 58928
Mak Vozila DOOEL 1 533 532
Industry, trade, catering 2 1478 5727
Tehnobravarija, office space 1 73 73
Office space at Bit Pazar clinic 1 533 532
Office space MAZDA, 1 / 939
Sales and servicing of cars 1 669 2138
Office space 1 722 721
Business building / / 177
Production facility 3 79 132
AGD Tehnika Skopje, administrative 1 / 939
building
Urban Group, Hotel 1 142 961
Administrative building 1 / 262
Mechos, Business space / / 177
Lesnina, Construction land, 4 3150 3943
administrative space and production
facility
Mavrovo Inzenering, administrative 1 / 1193
building
Factory M & A Beverages, 1 1858 8916
administrative building, production
facility and boiler room
Business building, administrative 1 2891 14754
part, sales space, presentation hall,
shop and office furniture
46
More detailed information for each of the proposed locations for investments is listed on the website of
the Agency for foreign investments of the Republic of Macedonia at the link:
http://brownfields.investinmacedonia.com/index.php/list?view=allproperties&ipquicksearch=1.
8. Useful addresses for investors

Website Institution/organization
http://www.investinmacedonia.com/index.php Agency for foreign investments and export promotion of
the Republic of Macedonia
http://www.skopje.gov.mk/ City of Skopje
www.roads.org.mk Public enterprise for roads
http://skp.airports.com.mk/default. Alexander the Great Skopje Airport
aspx?ItemID=345#sthash.FSCCs0IS.dpbs
http://mztransportad.com.mk/index.php Macedonian railways (Makedonski zheleznici transport AD
Skopje)
http://www.stat.gov.mk/ State Statistical Office of the Republic of Macedonia
http://www.msi.gov.mk/ Cabinet of the minister without portfolio responsible for
attracting foreign investments
http://www.fez.gov.mk/doma.html Directorate for technological industrial development zones
www.avrm.gov.mk Employment Service Agency of the Republic of Macedonia
http://fondzainovacii.mk/ Innovations fund

https://www.crm.com.mk/DS/ Central Registry
http://www.filmfund.gov.mk/ Film Agency of the Republic of Macedonia
47
Annex 1: Investment locations in the City of
Skopje
INVESTMENT OPPORTUNITIES IN THE MUNICIPALITY

OF AERODROM
Location: Industrial zone B
CP number 2.6
- Land area – construction parcel: 2795 m2
- Plan of construction area: 1045 m2
- Maximal construction surface area of all floors: 8360 m2, H=23.2m, G+6+A
- Basic purpose: Light Industry G2
- At the location in question, there is existing infrastructure – water supply, atmospheric drainage,
sewerage, electroenergetic and telecommunications infrastructure.
CP number 2.7
- Land area – construction parcel: 1297 m2
- Plan of construction area: 548 m2
- Maximal construction surface areas of all floors: 4384 m2, H=23.2m, G+6+A
- Basic purpose: Light Industry G2
- At the location in question, there is existing infrastructure – water supply, atmospheric drainage,
48 Location: Nearby the Jane Sandanski Sports Hall
- 1 construction parcel with D3 purpose – sport and recreation (next to the Jane Sandanski Sports Hall)
INVESTMENT OPPORTUNITIES IN
THE MUNICIPALITY OF BUTEL
Industrial zone “Rasadnik” offers 95 locations for
facilities for development of small businesses and light
industries
The Skopje-Veles Northern Bypass (Ring road) highway passes through this area connecting it with the
City of Skopje and the surrounding areas, as well as with the rest of the country. The basic advantages 49
of the site are the proximity of the City of Skopje, the good traffic connection with the city and the
surrounding regional and national roads. The terrain is flat and easily accessible.
OF GAZI BABA
Location: Industrial zone East – Skopje Fair
Area: 23.38 ha
Period for preparation of complete technical documentation: 6 months
Construction period: 48 months
Distance from the center of Skopje: 2km
Distance from the Skopje railway station: 1.5km
50
Commercial and business facilities:14.02 ha
Wholesale: 6.5 ha
Hotel complex: 2.10 ha
Location: Municipality building and part of the area

around the faculties
Area: 13.95 ha
Public institutions: 4.63 ha
Infrastructure: 3.82 ha
51
Protected greenery: 6.30 ha
Location: Sports and recreation center Zhelezara
ПArea: 15.04 ha
Accommodation capacities (hotels): 70,392 m2
Health institutions: 9.850 m2
Sports and recreation: 97,657 m2
52
Parking: 11,769 m2
Location: Madzari Hipodrom 2 – settlement
Area: 35.93ha
Construction period: 48 – 72 months
Distance from the center of Skopje: 10.5km
Distance from the Skopje railway station: 10km
Accommodation in houses and apartments: 15.1 ha
Commercial and business facilities: 0.46 ha
Public institutions: 4,080 m2
53
Religious buildings: 335 m2
Location: Sports and recreation center Hipodrom
ПArea: 42.23 ha
Distance from the center of Skopje: 10.5km
Distance from the Skopje railway station: 10km
Accommodation, temporary (hotels): 0.86 ha
Sports and recreation: 61,968 m2
54
Location: Industrial zone – Highway Interchange
Area: 270 ha
Distance from the center of Skopje: 15 km
Distance from the Skopje railway station: 15 km
Distance from the airport: 10 km
Production, distribution and services: 135.28ha

55
Location: Sports and recreation center Smilkovsko Lake
Area: 68,31ha
Distance from the airport: 10 km
Hotel complex: 8.40 ha
Accommodation (camps): 7.41ha
Sports and recreation: 18.90 ha
56
Location: House of Culture – Chento
Area: 2,975 m2
Total construction area: 8,540 m2
Period for preparation of complete technical documentation: 6
Small commercial facilities, shops, administration, sports
57
OF GJORCHE PETROV
Location: M3 Deksion UM1
The surface area of the location totals 3088m2, the construction area plan is 1248m2 in size, and the
total surface area of the floors is 3744m2. The height of the building from the protected sidewalk to the
maximal height of the cornice is 10.35m, and the floor structure for the building is G+2.
At the location in question, there is existing infrastructure – water supply, atmospheric drainage,
58
Location: Sharplaninska Street
There are 10 locations with different surface areas, dimensions and number of floors. Their total surface
area is 36,875 m2, and at the locations in question, there is existing infrastructure – water supply,
atmospheric drainage, sewerage, electroenergetic and telecommunications infrastructure.
Location: South 3
59
ПThe surface area of the site totals 212,320m2, the building plan surface area is 106,160m2, whereas the
total surface of floor area is 212,320m2. The height of the building from the protected sidewalk to the
maximal height of the cornice is 10.20m, and the floor structure for the building is G, G+1, G+2.
OF KARPOSH
Location: Zajchev Rid
60
At this location, buildings with the following purpose have been foreseen:
• Family house with garden (construction area 2,131.80m2)
• Commercial and business building (construction area 17,976.86m2)
• Collective housing buildings (construction area 4,676.58 m2)
• Family house with garden (construction area 1,284.20m2)
Location: Zhdanec
61
Location: Central complex by the Vardar River
62
The “Central complex near Vardar” site is a residential complex next to the Vardar River, close to the
center of the City of Skopje. In its vicinity, there is the Aleksandar Palace Hotel on five floors with 160
rooms and a commercial part.
Location: Central City Park block 1
63
Location: 1-block 1 “Karposh 3”
64
Location: Krivi Dol
65
OF KISELA VODA
Location: Crniche 2 – Sport terrains zone – Urban
block 22
66
- Number of construction parcel BP 22.72; 22.721 and 22.722
- Total surface area of the construction parcel 18,900.00 m2 (of which: ownership of the Republic
of Macedonia 2,209 m2, ownership of the Kisela Voda Municipality 12,255 m2, ownership of the
Assembly of the Kisela Voda Municipality and FAS Slavija 1,066 m2, private ownership 1,854 m2,
and private ownership with the right to use until sequestration 1,441 m2)
- Purpose of the land (basic class) – Sport and recreation
- Numbers of cadastre parcels contained in the construction parcel: CP 1895/1, CP 1895/2, CP
1895/3, CP 1895/4, CP 1895/5, CP 1895/6, CP 1895/7, CP 1895/8, CP 1911/3 and CP 1911/4
- Urbanized – outside of the central city area,
- Access to existing infrastructure,
- Period of preparation of complete documentations – 4 to 6 months,
- Period of construction – 1 year.
Location: Drachevo Village – block:

Sports terrain zone – block V
- Number of construction parcel Block V

- Total surface area of the construction parcel 36,000.00 m2 (ownership of the Republic of 67
Macedonia 36,000.00 m2)
- Numbers of cadastre parcels contained in the construction parcel: CP 9959
- Building surface: According to the architectural and urbanistic design plan prepared by AD for UAI
“ZUAS” from Skopje
- Period of preparation of complete documentations – 6 to 8 months,
- Period of construction – 18 months
Location: Sports terrains zone
- Sports terrains D3 – FCU Usje

- Number of construction parcel BP 22.72; 22.721 and 22.722
- Total surface area of the construction parcel 6.975,00 m2 (ownership of the Republic of
Macedonia)
- Numbers of cadastre parcels contained in the construction parcel: CP 3675/13
- Period of preparation of complete documentations – 6 months,
- Period of construction – 1 year.
68
Location: Tourist complex “Tri krushi”
- Purpose: small commercial and business activities

- Dracevo CP No. 5074 /2
- Surface in m2 3,500
69
Location: Construction parcel UB1-A4
- Number of construction parcel UB1-А4

- Total surface area of the construction parcel 5,000.00 m2 (ownership of the Republic of Macedonia
5,000 m2)
- Purpose of the land (basic class) – Temporary accommodation
- Purpose of the land (description) – outside an urban area А4
- Numbers of cadastre parcels contained in the building parcel: CP 5169/2, CP 7644/2, CP 7644/3
and CP 7644/4
- Surface area for construction
- Gross developed surface area
70
- Percentage of construction area 2.75%
- Coefficient of land utilization
- Maximal permitted height from 3.20 to 11.70 m
- Floor structure G+2+A
- Not urbanized outside of the central area
- Period of preparation of complete documentation: 1 year
- Period of construction: 2 years
Location: Construction parcel – Urban block 1
Information on construction parcel – Urban Block 1

- Number of construction parcel UB1-D3
- Total surface area of the construction parcel 3,500.00 m2 (ownership of the Republic of
Macedonia 3,500 m2)
- Purpose of the land (basic class) – small commercial and business activities
- Purpose of the land (description) – outside an urban area use B1
- Numbers of cadastre parcels contained in the building parcel: CP 5074/2
- Surface area for construction
- Gross developed surface area 71
- Percentage of construction area 1.10%
- Coefficient of land utilization /
- Maximal permitted height from 3.20 to 11.70 m
- Period of preparation of complete documentation: 1 year
- Total surface area of the construction parcel 9,997.00 m2 (ownership of the Republic of Macedonia
9,997 m2)
- Purpose of the land (description) – outside of an inhabited place D3
- Numbers of cadastre parcels contained in the building parcel: CP 5074/3
- Period of preparation of complete documentation: 6 to 8 months
- Period of construction: 18 months
of Macedonia 560,079 m2 and private ownership 181 m2)
- Numbers of cadastre parcels contained in the building parcel: CP 5075/2, CP 5166/2, CP 7644/2, CP
5135/4, CP 5135/5, CP 5135/6 and CP 5135/7
- Period of preparation of complete documentation: 18 months
- Period of construction: 2 to 3 years
- Total surface area of the construction parcel 15,179.00 m2 (ownership of the Republic of
Macedonia 15,179 m2)
- Purpose of the land (basic class) – Parks and greenery
72
- Numbers of cadastre parcels contained in the building parcel: CP5074/2
- Period of preparation of complete documentation: six to seven months
Location: Construction parcel – Urban block 3

- Number of construction parcel UB3-А4
of Macedonia 137,379 m2 and private ownership 17,621 m2)
- Purpose of the land (basic class) – Temporary accommodation – hotel complex А4
- Purpose of the land (description) – outside of an inhabited place А4
- Numbers of cadastre parcels contained in the building parcel: CP 5075/4, CP 6517, CP 6514/2, CP
6520, CP 6521, CP 6522, CP 6523, CP 6524, CP 6527/2, CP 6528, CP 6529, CP 6530, CP 6531/2,
73
CP 6532, CP 6533, CP 6534, CP 6535, CP 6536, CP 7647/2, CP 7647/2, CP 7606/2, CP 6493/2, CP
6493/3, CP 6487/2, CP 6504/3, CP 6504/3, CP 6505/2, CP 6515/2, CP 6518, CP 6519 и CP 6525,
- Percentage of construction area 45%
- Coefficient of land utilization C=0.67
- Maximal permitted height 8.70 m
- Period of preparation of complete documentation: 2 years
OF SARAJ
Location: Sports – Recreation Center “Saraj”
The sports-recreational center Saraj is located at the entrance of the municipality. There is a football, a
handball, a volleyball pitch and a tennis court. In the frames of the center, there is solid infrastructure for
accompanying service and catering activities.
Location: Recreational lake “Treska”
74
The Treska Recreational Lake is one of the more beautiful artificial lakes in the Skopje region. Its location,
accessibility, the accompanying service and catering facilities make it of exceptional importance and
attract a large number of visitors and investors interested in additional development and modernization
of the lake.
Location: Industrial zone 402
The industrial zone is being developed into a modern space in which a dairy factory and a purchase
center for fruit and vegetables operate. Additionally, there is a factory from the light industry for
processing and repackaging of oils and lubricants.
In this region, there are opportunities for additional development of the light industry, as well as
production of vegetables.
INVESTMENT OPPORTUNITIES IN THE MUNICIPALITY 75

OF CENTAR
Location: Prolet
The Prolet site is located in the Municipality of Centar. It is located in the central part of the municipality
and the City of Skopje. Very close to the site, there are the international railway and bus stations, very
close to it is the Skopje clinical center and a large number of commercial, service and catering facilities.
Location: Presveta Bogorodica
The Presveta Bogorodica site is located in the Municipality of Centar. It is located in the central part of
the municipality and the City of Skopje. Very close to the site, there are numerous commercial, service
and catering facilities, as well as a large number of scientific and educational institutions.
76
Location: Bunjakovec 1
77
Location Bunjakovec 1 is in the municipality of Centar. It is located in the central part of the municipality
and the City of Skopje. In the immediate vicinity of the site, there are numerous commercial, service and
catering facilities.
Location: Mal Ring
Location “Mal Ring” is in the municipality of Centar. It is located in the central part of the municipality
and the City of Skopje. In the immediate vicinity of the site is the Skopje square as well as numerous
commercial, service and catering facilities.
The mentioned location has existing infrastructure for: water, rainwater and sewage, electricity and
telecommunications.
Location: Golem Ring Istok – Business Towers
78
Location “Golem Ring Istok - Business Kuli” is in the municipality of Centar, located in the central part of
the municipality and the City of Skopje. In the immediate vicinity of the site is the Skopje square as well
as numerous commercial, service and catering facilities.
Location: Kapishtec – Geoloshki zavod

Location Kapistec – Geoloshki Zavod is in the municipality of Centar, located in the central part of the
municipality and the City of Skopje. In the immediate vicinity of the site is the Skopje Clinical Center as
well as numerous commercial, service and catering facilities.
Location: Mirche Macan
79
Location “Mirce Macan” is in the municipality of Centar. It is located in the central part of the municipality
and the City of Skopje. In the immediate vicinity of the site, there are the International Railway and Bus
Stations, the Skopje Clinical Center is very close, as well as numerous commercial, service and catering
facilities.
OF CHAIR
Location: Skopje Sever Central part - East
Urban module 25 CP 25.5 – Chair
- Number of construction parcel : CP 25.5

- Total surface area of the construction parcel: 2,721m2
- Purpose of the land (basic class):
- Communal housing facility (CHF)
Purpose of the land (description):
- Class of purpose A2 communal housing facility
- Compatible class of purpose commercial and business purposes B1
80
- Construction land not built on out of the central area subzone B
1070/2, CP 1070/2, CP 1071/2 C.M. Chair
- Surface of the parcel: 2,721 m2
- Construction surface: 964 m2
- Gross developed area: 4,820 m2
- Percentage of construction area: 35.0 %
- Coefficient of land utilization: 1.8 C
- Maximum allowed height: 16.20 m
- Floor structure: /
Location: part of contact zone – Mavrovka of monument

ensemble SSCH
- Number of construction parcel: GP 1.4

- Total surface area of the construction parcel: 155m2
- Class of purpose B1 – small commercial and business
Purpose of the land (description): 81

- Numbers of cadastre parcels contained in the construction parcel: CP 8891/1 C.M. Centar 1
- Surface of the parcel: 155m2
- Construction surface: 155m2
- Gross developed area: 155m2
- Percentage of construction area: According to the rulebook of standards
- Coefficient of land utilization: According to the rulebook of standards

- Total surface area of the construction parcel: 1,415 m2
- Purpose of the land (basic class): B – Communal housing facilities (CHF)
- Communal housing facilities (CHF)
- Purpose of the land (description):
82 - Class of purpose A2 communal housing facilities
3127/2, C.M. Chair
- Gross developed area: 2288 m2
- Percentage of construction area: 40%
- Coefficient of land utilization:1.6 C
- Parking spaces: 23
Location: Saat Kula (Clock Tower)


- Total surface area of the construction parcel: 1,189 m2
- B2 Health and social protection
- Numbers of cadastre parcels contained in the construction parcel: CP 7559, CP 7561/2, CP 7557/2,
C.M. Centar 1 83
- Gross developed area: 1,356 m2
- Public institution health and social protection
- Coefficient of land utilization:
- Floor structure: G+2
Urban module 6 GP 6.6 – Chair

- Total surface area of the construction parcel: 732 m2
- Purpose of the land (basic class): B3 Kultura (Library)
- Public institution Kultura - Library
84
- Numbers of cadastre parcels contained in the construction parcel: CP 7558, CP 7557/2, CP 7554/2,
CP 7557/3 C.M. Centar 1
- Coefficient of land utilization:


- Total surface area of the construction parcel: 1369 m2
- Communal housing facility (CHF)
- Class of purpose A2 communal housing facility 85
- Numbers of cadastre parcels contained in the construction parcel: CP 2723/2, CP 2813, CP 2814/2,
CP 2816/2, CP 2817/2, C.M. Chair
- Coefficient of land utilization: 1.5 K
- Parking places: 21
OF SHUTO ORIZARI
In the Municipality of Shuto Orizari, there is no state-owned land as investment opportunity.
86
87

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FROM THE AMERICAN PEOPLE

YOUTH EMPLOYABILITY SKILLS NETWORK

This publication has been financed by the American

the Youth Employability Skills Network (YES Network)

Official name Republic of Macedonia

2. Profile of the City of Skopje

Picture 1. Location of the City of Skopje in R. Macedonia

2.2. Demographic data

Source: NBRM, Basic economical indicators for Republic of Macedonia

5) Stabilization and Association Agreement

2.3.2. Investment benefits in the City of Skopje

3. Opportunities for investment in the City of

3.1. Automotive industry

3.7. Film industry

3.8. Chemical industry

3.9. Energy sector

preparation of a feasibility study)

5. Conditions for doing business

5.2. Procedure for establishing a company

5.2.1. Work visas/work permit

Table 1 Taxes in the Republic of Macedonia

Table 2 Duty rates in the Republic of Macedonia

5.4. Institutions that support investments

5.4.2. Directorate for technological industrial development

5.5. City of Skopje investment-supporting policies

• improved access to financial services for innovations and technological development;

5.5.2. Employment-supporting measures

Assistance for small and medium-sized enterprises

5.6. Banks and financial institutions

Table 3 Banks with branch offices in Skopje

Table 4 Savings houses in Skopje

State statistical office, Statement: Average monthly gross-salary, August, 2015

Picture 2 Students graduated from the state university in Skopje in 2014

*Source: State Statistical Office

5.7.2. Activity of the population

Table 6 Active population according to education

2014/IV 2014/IV 2014/IV

3-year secondary 88 751 59 066 29 685

Picture 4 Structure of unemployed persons by education

Source: Statistical data base

5.7.3. Average salary in the Republic of Macedonia

20. Manufacture of chemicals and chemical products 20,451

5.7.4. Expenditures of employers

Table 9 Annual average expenditures per employee

Table 10 Distances and prices of transport of a 20-tonne truck from Skopje

Statistical annual publication of the Republic of Macedonia, 2015

6.2. Railway infrastructure

Source: http://skp.airports.com.mk/default.aspx?ItemID=433#sthash.5m3ib5JQ.dpbs (website of Alexander the Great Airport)

6.7. Oil and gas pipelines

6.8. Water supply

6.9. Construction permit cost

Table 11 Cost for preparation of construction land / expressed in Eur/м2

Butel suburban 2,5 10

Gjorce Petrov suburban 10 15

Saraj 1 Raovikj, Panicar 0 0

*Source: Agency for foreign investments and export promotion.

Table 12 Cost of premises in the City of Skopje

*Source: Agency for foreign investments and export promotion.

7. Locations for investments in the City of

The detailed list of locations for greenfield investments is provided as addendum 1

7.2. Locations for brownfield investments

Construction land and production 4 3 150 3 943

*Source: Agency for foreign investments and export promotion.