North Macedonia Investment Income Guide 2026

Overview — Investment Income Taxation

North Macedonia taxes investment income through a combination of final withholding taxes and ordinary income treatment, all at the flat 10% rate. The Public Revenue Office (PRO) administers all withholding taxes under the Law on Personal Income Tax and the Law on Profit Tax. Resident individuals are taxed on worldwide investment income; non-residents are taxed only on Macedonian-source investment income. Double tax treaties with over 50 countries may reduce withholding tax rates for non-residents.

Dividends — 10% WHT

Dividends paid by Macedonian-resident companies are subject to withholding tax at 10% for both resident and non-resident shareholders. For resident individuals, the 10% WHT is a final tax, meaning the dividend income is not included in the annual income tax return. For corporate shareholders, the 10% WHT is an advance payment against their CIT liability. For non-residents, the rate may be reduced to 0-5% under applicable double tax treaties. North Macedonia has an extensive treaty network with over 50 countries, many providing reduced dividend withholding rates.

Interest Income — 10%

Interest income is generally treated as ordinary income and taxed at the flat 10% rate. Key points:

• Bank deposits — interest is subject to 10% withholding tax (final for individuals)
• Government bonds and Treasury bills — interest taxed at 10%
• Corporate bonds — interest taxed at 10%
• Interest paid to non-residents — 10% WHT (may be reduced under DTTs)

Interest on savings deposits with Macedonian banks is subject to final withholding tax, with no further reporting obligation for resident individuals.

Capital Gains — Exemption for Shares Held > 1 Year

As detailed in the capital gains guide, gains from the sale of shares held for more than 1 year are exempt from tax. Gains on shares held for less than 1 year are taxed at 10%. This exemption has encouraged long-term investment in the Macedonian Stock Exchange (MSE). Gains from the sale of government securities are also generally exempt from capital gains tax, making them attractive for fixed-income investors.

Mutual Funds & Investment Funds

Distributions from mutual funds and investment funds to individual investors are generally subject to 10% withholding tax. Capital gains realised by the fund itself are not taxed at the fund level; instead, investors are taxed on distributions received. Pension funds and voluntary pension savings vehicles may benefit from preferential tax treatment, with contributions being tax-deductible and investment returns accumulating tax-free until withdrawal.

FAQs

Do I pay tax on foreign dividends as a Macedonian resident?

Yes, resident individuals are taxed on worldwide investment income. Foreign dividends should be declared in the annual tax return and are subject to the flat 10% rate. Foreign tax credits may be available under applicable DTTs.

Are Treasury bills a good investment for tax purposes?

Yes, government securities offer attractive yields with simple tax treatment — interest is subject to 10% final WHT, and capital gains on disposal are generally exempt.

Can I avoid dividend tax by reinvesting?

The 10% WHT on dividends applies regardless of whether the dividend is paid in cash or reinvested in shares. Reinvestment does not defer the tax.

Disclaimer

This guide provides general information about North Macedonian investment income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Macedonian tax advisor or the Public Revenue Office for advice specific to your situation. InvestmentKit does not provide tax advice.