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The Republic of Macedonia is a small, land-locked economy with a population of just over 2 million. Strategically positioned, it is situated in the central part of the Balkan Peninsula (South-eastern Europe) characterized by large and high mountain massifs giving way to extensive, flat valleys and plains.

The country is bordered by Serbia and Monte Negro to the North, Bulgaria to the East, Greece to the South and Albania to the West. It is a major transit way for shipment of goods from Central Europe to the East and from Eastern Europe and Greece towards Western Europe. Throughout history each of these transiting powers left its mark upon the region, giving rise to a rich and varied cultural and historical tradition.

With so much attention on the Balkans region, our report aims to focus on this up and coming country. A first in a series of reports on the region, The Republic of Macedonia, has various incentives to offer the foreign investor and tourist alike.

The country is committed to attracting direct foreign investment with a view to facilitating growth and diversifying the economy. In this context the government has undertaken many initiatives such as introducing the lowest flat tax rate in Europe for both corporate and personal income taxes. As a candidate for EU and NATO membership, the Government has made a priority in 2007 to focusing on slashing bureaucracy and improving the work of public administration. The centerpiece of the effort called the "Regulatory Guillotine" project, which envisions cutting the number of unnecessary regulations related to state administration and the corporate sector. With the establishment of Free Trade Zones, and extensive tax advantages, the future looks bright.

There is a wide range of investment opportunities in all sectors of the economy, most of which promises good returns on capital.

Based on interviews with members of the government and top businesspeople of the Republic of Macedonia both local and foreign. This report will be an investor’s guide, stressing the opportunities presented in the country.