Changes in the Financial support of investments in North Macedonia
The Law on the financial support of Investments 2021 regulates the types, amount, conditions, manner and procedure for granting financial support to investments of business entities that will invest in the Republic of North Macedonia and it is a scheme of assistance in accordance with the regulations governing the control of state aid.
In the previous period, many Macedonian companies received financial support and thus contributed to increase the economic capacity of the country.
In accordance to the law, the following entities are qualified as beneficiaries of financial support:
- the one that have started Initial Investments
- the one that generated growth of total revenues from operation
- the one in which the number of employees has not been decreased by more than 5%
- the newly registered company
- the Textile & Leather-processing manufacturer
- Company for military equipment production
In accordance to the law, the Financial Aid in North Macedonia can be granted for:
- New employments
- Cooperation with local suppliers
- R & D Centers and Activities
- Investments projects of enormous economic interest
- Capital Investments
- Support for acquisition of companies that are facing difficulties
- Growth of the competitiveness of companies
For Productive Initial Investments of business entities founded by citizens of the Republic of North Macedonia with residence or temporary stay out of the Republic of North Macedonia, the amount of the financial support shall be increased by 15% of the justified investment costs, up to 1.000.000 euros annually.
The new amendments to the law expand the types of financial support for technological development and research, support for investment projects of significant economic interest, support for taking over companies in difficulties and competition in the market.
These amendments also regulate the financial support of citizens with permanent and temporary residence in and outside the RSM, and also present the conditions for balanced regional development. At the same time, it is specified which entities can and which can not be beneficiaries of financial support. The list of eligible investment costs has also been expanded.
The purpose of the amendments to this law is to accelerate the economic growth and development in the Republic of North Macedonia by supporting investments to increase the competitiveness of the economy of the Republic of North Macedonia and employment.
The above text is for information purpose only. It’s content cannot be cosnidered a legal advise. Please consult a lawyer for more specific legal information.