🇲🇰 Tax residency in North Macedonia

You're probably wondering if you'll owe taxes in North Macedonia just by being here. The main rule is simple enough: spend 183 days in the country within a 12-month period, and you're generally considered a tax resident. That's the benchmark. But it's not the whole story.

North Macedonia also looks at your "centre of vital interests." This means even if you dip under that 183-day mark, if your personal and economic ties are primarily with North Macedonia, they can still deem you a resident. Think about what ties you to a place. Do you own property here? Is your immediate family (spouse, minor children) living here? Have you registered a business or are you employed by a North Macedonian entity? These are the kinds of things that can pull you into the tax net, even if you haven't hit the strict day count. Owning real estate, especially a primary residence, is a big one. So is having your spouse and children living here permanently. A registered business, even if it's small, also signals a strong connection.

If you are deemed a tax resident, North Macedonia operates on a worldwide taxation principle. That means income earned anywhere in the world is potentially taxable. The good news is the tax rates are relatively low. There's a flat 10% personal income tax on most income sources. For dividends and capital gains, it's also 10%. This is significantly lower than many Western European countries. For instance, if you earn €30,000 a year from freelance work or a remote job outside North Macedonia, your tax bill would be around €3,000. If your income is €60,000, you're looking at €6,000 in taxes. This flat 10% rate applies up to a certain income threshold, after which it might increase, but for most digital nomads, it’s likely to remain at 10%†.

Currently, there isn't a specific "digital nomad" tax regime or a special tax incentive programme designed to attract remote workers, unlike some other Balkan countries. This means you fall under the general tax laws. What shelters you from paying tax twice? Tax treaties. North Macedonia has double taxation avoidance agreements with many countries. For US citizens, the treaty generally ensures you're taxed where you're resident, but it gets complex if you have significant business presence or permanent establishments. UK citizens will find the treaty generally aligns with OECD models, meaning your income is typically taxed in the country where you are tax resident. German citizens will also find similar provisions in the treaty, aiming to prevent double taxation and often favouring taxation in the country of residence. The key here is understanding how your specific treaty applies to your income sources and residency status in both countries.

Engaging a local accountant can pay for itself surprisingly quickly. If you're earning more than, say, €2,000 a month from foreign sources and are unsure about your residency status or treaty implications, the cost of advice is often less than the potential tax savings or penalties you might avoid. They can also help with the annual tax return filing, which is generally due by April 15th each year†.

Ultimately, North Macedonia taxes residents at a competitive flat 10% on worldwide income, but watch out for the "centre of vital interests" test if you spend less than 183 days here.

This information is for guidance only and does not constitute legal or tax advice.