The Macedonian government is drafting a new law to support individual investors, known as business angels, by formally defining their role and introducing tax incentives for their investments in startups. The regulation seeks to provide greater legal certainty, stimulate private investments, and encourage innovation-driven growth that would lead to new jobs and stronger competitiveness.
To qualify for the incentives prescribed by the law, investments must be made in micro, small, or medium-sized enterprises that are not publicly listed, not undergoing bankruptcy or liquidation, and have no prior ownership or management links with the investor. The minimum eligible investment is EUR 5,000, while the maximum is EUR 250,000. Business angels may acquire up to 25% ownership in a company, but cannot act as managers or receive salaries from it. The draft also provides that business angels may co-invest in a company, in which case they are represented by a jointly appointed representative.
According to the draft law, business angels will be entitled to a 50% exemption on personal income tax from dividends earned through their participation in a company’s profits, for a period of five years, as of the day of acquisition of their share in the startup. The investors would also receive a 100% exemption on capital gains up to EUR 100,000, and a 50% exemption on gains above that amount, provided they do not sell their shares within three years. The total cumulative value of tax benefits will be capped at EUR 250,000.
Each investment must be registered in the Register of Investments of Individual Investors – Business Angels, which is to be established in accordance with the new law.
Certain sectors, such as banking, insurance, real estate, gambling, arms production, alcohol, tobacco, and narcotics, will be excluded from eligibility. The government emphasises that the goal is to direct private capital into innovative and productive industries that can generate long-term economic benefits.
The draft law also introduces the possibility of establishing business angel networks, which would operate as non-profit associations. These networks should serve as platforms for cooperation, knowledge sharing, and connecting investors with entrepreneurs in need of funding. Additionally, they may apply for financial support from the state budget or international donors, to further stimulate angel investment activity.
By creating a clearer legal framework and offering tax relief, the government hopes to transform business angels into active contributors to the country’s startup ecosystem, helping new companies secure early-stage financing and driving economic growth through innovation.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
