North Macedonia Tax Residency Guide 2026

Overview — Tax Residency in North Macedonia

Tax residency is the foundational concept determining the scope of taxation. Resident individuals are taxed on their worldwide income; non-residents are taxed only on Macedonian-source income. Residency is defined under the Law on Personal Income Tax. For individuals, the test is primarily based on physical presence (183 days) or having a permanent home in North Macedonia. For companies, residency follows incorporation or place of effective management. The Public Revenue Office (PRO) applies these rules and may challenge arrangements designed to artificially avoid residency.

Individual Residency — 183-Day Rule

An individual is considered a tax resident of North Macedonia if they meet any of the following conditions:

• Physical presence — present in North Macedonia for 183 days or more in any 12-month period (including a calendar year)
• Permanent home — has a permanent home available in North Macedonia (owned or rented) and is present for any period during the year
• Habitual abode — has a habitual place of abode in North Macedonia and spends more than 183 days in the country
• Centre of economic interests — the centre of vital or economic interests is in North Macedonia

Day counting includes both partial days and full days. Expats working in North Macedonia should track their presence carefully. The 183-day test applies to any consecutive 12-month period.

Corporate Residency

A company is tax resident in North Macedonia if either of the following conditions is met:

• Incorporation — the company is incorporated or registered under the Companies Law in North Macedonia
• Place of effective management — the place of effective management (POEM) of the company is in North Macedonia (where key management and commercial decisions are made)

Foreign companies that have their central management and control exercised in North Macedonia may be deemed resident. The POEM test considers factors such as the location of board meetings, where the CEO and senior executives operate, and where strategic decisions are made.

Source Rules — Macedonian-Source Income

Non-residents are taxed only on income derived from sources in North Macedonia:

• Employment income — sourced where the employment duties are performed (physical location)
• Business income — sourced where business activities are carried out (or through a permanent establishment in North Macedonia)
• Property income — sourced where the property is located (rental, capital gains on Macedonian property)
• Dividends — sourced where the paying company is resident
• Interest — sourced where the payer is resident
• Royalties — sourced where the intellectual property is used

Double Tax Treaties — 50+ Countries

North Macedonia has one of the most extensive double tax treaty networks in Southeast Europe, with over 50 comprehensive DTTs. Key treaties include agreements with:

• EU countries — Germany, France, Italy, Austria, Netherlands, Belgium, Sweden, Denmark, Finland, Greece, Slovenia, Croatia, Czech Republic, Slovakia, Hungary, Poland, Romania, Bulgaria, Spain, Portugal, Luxembourg, Ireland, Malta
• Balkan neighbours — Serbia, Kosovo, Montenegro, Bosnia and Herzegovina, Albania, Slovenia, Croatia
• Other European — Switzerland, Norway, Turkey, Ukraine, Russia, Belarus
• Global — China, India, UAE, Kuwait, Qatar, Egypt, South Africa

Treaties generally reduce withholding tax rates on dividends, interest, and royalties. Most treaties provide for 0-5% dividend WHT for qualifying shareholders, 5-10% interest WHT, and 5-10% royalty WHT.

FAQs

If I work remotely for a foreign company while in North Macedonia, am I taxable?

If you are physically present in North Macedonia for 183+ days, you are a tax resident and must declare your worldwide income, including salary from foreign employment. If present for fewer than 183 days, only Macedonian-source income is taxable.

How do I prove I am not a resident?

Maintain records of travel dates, visa stamps, employment contracts, and rental agreements. A Certificate of Tax Residency from your home country is strong evidence.

Can I be resident in two countries at once?

Yes, dual residency is possible. The applicable double tax treaty will contain a tie-breaker clause to determine which country has primary taxing rights.

Disclaimer

This guide provides general information about North Macedonian tax residency for the 2026 tax year. Tax laws and treaty provisions 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.