City of Skopje Guide for Investors
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FROM THE AMERICAN PEOPLE YOUTH EMPLOYABILITY SKILLS NETWORK Град Скопје CITY OF SKOPJE GUIDE FOR INVESTORS 1 Skopje, 2015 City of Skopje Proposer: Koce Trajanovski, The Mayor of the City od Skopje Preparation: Sector fot Local Economic Development Representative: Slobodan Kosev, Head of the Sector for Local Economic Development Design and print: Evropa 92 Skopje,2015 2 This publication has been fi nanced by the American people, through the United States Agency for FROM THE AMERICAN PEOPLE International Development – USAID Macedonia, within YOUTH EMPLOYABILITY SKILLS NETWORK the Youth Employability Skills Network (YES Network) Project , implemented by the Education Development Center (EDC). The authors’ views expressed in this publication do not necessarily refl ect the views of the United States Agency for International Development or the United States Government. Table of contents Forewords .................................................................................................................................................6 1. Profile of the Republic of Macedonia ...................................................................................................7 2. Profile of the City of Skopje .................................................................................................................8 2.1. Geographic data .......................................................................................................................8 2.2. Demographic data ....................................................................................................................9 2.3. Economic and investment climate ............................................................................................9 2.3.1. Economic situation in the Republic of Macedonia .......................................................9 2.3.2. Investment benefits in the City of Skopje .................................................................10 3. Opportunities for investment in the City of Skopje ............................................................................11 3.1. Automotive industry ...............................................................................................................11 3.2. Information and Communication Technologies ......................................................................12 3.3. Health, medicine equipment and pharmacy ...........................................................................12 3.4. Agribusiness and the food processing industry ......................................................................13 3.5. Textile industry .......................................................................................................................13 3.6. Metals and metal products .....................................................................................................13 3.7. Film industry ..........................................................................................................................13 3.8. Chemical industry ...................................................................................................................14 3.9. Energy sector ..........................................................................................................................14 3.10. Construction ...........................................................................................................................14 3.11. Tourism ...................................................................................................................................14 4. Successful foreign investments in the city .........................................................................................15 5. Conditions for doing business ...........................................................................................................15 5.1. Types of companies in the Republic of Macedonia ..................................................................15 5.2. Procedure for establishing a company ....................................................................................15 3 5.2.1. Work visas/work permit ...........................................................................................17 5.2.2. Access to information on potential partners and suppliers ........................................17 5.3. Taxes .......................................................................................................................................18 5.4. Institutions that support investments.....................................................................................19 5.4.1. Agency for foreign investments ................................................................................19 5.4.2. Directorate for technological industrial development zones .....................................20 5.5. City of Skopje investment-supporting policies ........................................................................20 5.5.1. Fund for Innovations and Technology Development (FITD) .......................................20 5.5.2. Employment-supporting measures...........................................................................21 5.5.3. State aid stipulated with the current legal acts of R.M. .............................................21 5.6. Banks and financial institutions ..............................................................................................22 5.7. Labor market ..........................................................................................................................23 5.7.1. Education ..................................................................................................................23 5.7.2. Activity of the population .........................................................................................25 5.7.3. Average salary in the Republic of Macedonia ............................................................25 5.7.4. Expenditures of employers ........................................................................................27 6. Infrastructure ....................................................................................................................................28 6.1. Road infrastructure .................................................................................................................28 6.2. Railway infrastructure ............................................................................................................29 6.3. Airports...................................................................................................................................29 6.4. Maritime traffic .......................................................................................................................30 6.5. Telecommunications ...............................................................................................................30 6.6. Energy ....................................................................................................................................30 6.7. Oil and gas pipelines ...............................................................................................................30 6.8. Water supply ...........................................................................................................................31 6.9. Construction permit cost .........................................................................................................31 7. Locations for investments in the City of Skopje .................................................................................32 7.1. Locations for greenfield investments ......................................................................................32 7.1.1 Technological industrial development zone – TIDZ 1 Skopje ..........................................32 7.1.2 Technological industrial development zone – TIDZ 2 Skopje ..........................................32 7.2. Locations for brownfield investments .....................................................................................33 8. Useful addresses for investors ...........................................................................................................35 Annex 1: Investment locations in the City of Skopje ................................................................................36 List of tables 4 Table 1. Taxes in the Republic of Macedonia ............................................................................................18 Table 2 Duty rates in the Republic of Macedonia .....................................................................................18 Table 3 Banks with branch offices in Skopje ............................................................................................22 Table 4 Savings houses in Skopje .............................................................................................................23 Table 5 Students who finished secondary education by school preparation ............................................24 Table 6 Active population according to education ...................................................................................25 Table 7 Population activity rates .............................................................................................................25 Table 8 Calculated amount of 50% of the average monthly salary per employee ....................................26 Table 9 Annual average of expenditures per employee ...........................................................................27