North Macedonia: Draft law on tax incentives for “business angel” individual investors
Including dividend and capital tax relief
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October 9, 2025
The Ministry of Economy published a draft law on “business angel” individual investors that would introduce the following tax incentives aimed at stimulating investments in startup entities:
- Dividend tax relief: 50% exemption from individual (personal) income tax on dividends derived from participation in the profits of the investee company, applicable for five years from the date of share acquisition
- Capital gains tax relief:
- 100% exemption from individual (personal) income tax on capital gains realized from the sale of the investment (“angel share”), up to a threshold of €100,000, provided the investor retains the share for a minimum of three years
- 50% exemption on the portion of capital gains exceeding €100,000, subject to the same three-year holding period condition
- Cumulative cap: The total cumulative value of tax-exempt amounts under the above provisions shall not exceed €250,000
The specific procedures for implementing these tax exemptions would be determined by the Minister of Finance, in coordination with the Minister of Economy and Labor.
Read an October 2025 report prepared by the KPMG member firm in North Macedonia