We are living in a new reality in which the global economy is changing and companies are wondering how to stay in business. While everybody is focused on the economic situation in their own country, all countries are interdependent on one another. Right now companies are looking to cut costs and get the most value for every euro they spend, which has a domino effect on the economy of the countries that these companies are active in.
Today, we will take a look at the economic benefits of outsourcing to North Macedonia, with which companies can maximize their investments. Firstly, try to answer the following question: how does it sound to start a business or scale up in a country where locals do their best to make you feel at home? Aside from the Macedonian business culture that we have previously explained, Macedonians are warm, polite and welcoming to foreigners. Moreover, an increasing number of big companies and startups are locating or outsourcing in North Macedonia.
We will start introducing you to the benefits of outsourcing in North Macedonia in this way: In the World Bank’s latest rankings North Macedonia is ranked 17th in the world for the ease of doing business. This high ranking is a mirror of the fact that the regulatory environment is more conducive to the opening and operation of a local firm. For the ease of doing business, North Macedonia holds the highest position in the Balkans and exceeds countries like Germany, Finland and Estonia. Furthermore, North Macedonia scores over 80/100 for trading across borders (93.9), starting a business (88.6), dealing with construction permits (83.5), paying taxes (84.7), getting electricity (81) and protecting minority investors (82).
Along with that, one of the biggest perks of outsourcing in North Macedonia is the favourable tax environment. This country has one of the lowest corporate income tax rates in the world which is only 10%. The personal tax is also 10%, while the General Income Tax is 18%. Additionally, the government offers a 10-year tax-free operation for investments made in the Free Economic Zones where highly productive clean manufacturing activities are concentrated and new technologies are developed.
Among other benefits of outsourcing to North Macedonia, is the highly qualified labor force available on the market. While the labor force in North Macedonia is generally skilled and well educated, the wages in the country are significantly lower than those in Western Europe, which creates a significant upside potential for labor-intensive investments. The Labor Law, which is prepared in accordance with the EU standards, provides increased flexibility of the labor market by offering and promoting flexible and diverse employment contracts and flexibility of working time.
Finally, while the ICT industry is rapidly growing in North Macedonia it is important to mention that for highly skilled and qualified workers, a person working in Information Technology in North Macedonia on an average earns 750 euros per month, depending on the exact industry that this person is in. The salaries range from 390 euros, which is the lowest average, to 1220 euros, being the highest average.
It’s evident that North Macedonia’s location has a major geo-strategic significance and it’s ideal for those who wish to expand their business. Many European and American businesses and investors see North Macedonia as an investment destination with stable macroeconomic policy, open trade regime, competitive tax rates and free economic zones.
If you decide that outsourcing to North Macedonia is the right choice for you, do not hesitate to contact us and to book your first free consultation.