North Macedonia tightens investment support rules

The Minister of Economy and Labor of North Macedonia Besar Durmishi visited the companies "Vitalia Nikola", "Polyesterday" and "BB Continental Metal", beneficiaries of financial support in accordance with the Law on Financial Support for Investments.

The visit is part of the activities of the Ministry of Economy and Labor to monitor the implementation of investments and direct communication with companies that use state support to develop and improve their operations, CE Report informs via the Ministry of Economy and Labor of North Macedonia's official website.

"The Law on Financial Support for Investments is one of the key instruments through which the state supports companies that invest, increase productivity and competitiveness and create new jobs. Our goal is for public support to have a concrete and measurable effect on the economy - through greater production, new technologies, increased exports and better jobs," Minister Durmishi emphasized.

The amendments to the Law, which will apply from January 1, 2026, further specify the conditions for using financial support. The support is aimed at productive initial investments in production activities in the processing industry, and the basic threshold is set at least EUR 100.000 in MKD counter value.

The law provides financial support for several categories of investments and activities, including new employment, capital investments, research and development, investment projects of significant economic interest, as well as activities to increase the competitiveness of companies.

In terms of new employment, the measure provides financial support of up to 20 percent of the net salary paid, or up to EUR 4.400 euros per year per new employee. For capital investments, support can amount to up to 10 percent of eligible investment costs, up to a maximum of one million euros per year, while for research and development, support of up to 50 percent of eligible costs, also up to EUR one million, is provided.

"It is particularly important that the system is not based only on the principle of allocating funds, but also on achieving results. Companies should make a productive initial investment, achieve growth in total operating income, and the average number of employees should not be reduced by more than five percent compared to the initial situation stipulated by the agreement," Durmishi pointed out.

The 2026 amendments further strengthen the role of the Ministry of Economy and Labor in monitoring the implementation of the agreements. The Ministry monitors the implementation of concluded agreements throughout their validity and prepares reports to the Government on this. This ensures greater control, accountability and efficiency in the use of public funds.

"Today we contact in person with the companies to see what this support means in practice – what investments have been made, what results have been achieved and what their future plans are. It is important for us to listen to the companies and their needs, because only through a partnership between the state and business can we create a better investment and business climate," the Minister added.

Durmishi emphasized that the Government and the Ministry of Economy and Labor remain committed to creating a predictable, transparent and efficient system for supporting investments, with clear criteria and measurable economic effects.

"We want every Denar of public support to be converted into new investment, greater productivity and new economic value. Strong and competitive domestic companies are the basis for strong economy, greater exports, more quality jobs and a higher standard of living for citizens," concluded Durmishi.

Photo Ministry of Economy and Labor of North Macedonia