Investment Opportunities in the Balkans: Sector and Country Comparison

There is a clear difference in corporate tax among the four countries: North Macedonia, Bulgaria and Kosovo apply a low, flat corporate tax rate of around 10%, while Serbia has a relatively higher rate of 15%. Dividend taxation also differs; Kosovo has no dividend tax, Bulgaria applies about 5%, North Macedonia about 10%, and Serbia around 15%.

Bulgaria's EU membership and its adoption of the euro as of 1 January 2026 offer a distinct advantage in terms of integration with the EU market and currency risk. Which country suits you best depends on your sector, investment size and priority (lower tax, EU market access, or incentive packages).

North Macedonia has 11 free zones (Technological Industrial Development Zones) offering benefits such as a 10-year exemption from profit and personal income tax and long-term land leases at low cost for up to 50 years (extendable to 99). Serbia has close to 15 free zones (one still developing); companies operating there benefit from VAT exemption and customs duty advantages, and large investments exceeding EUR 1 billion creating over 100 jobs may qualify for up to a 10-year tax holiday.

In Bulgaria, large-scale investments are supported by the Bulgarian Investment Agency, with potential state contribution toward building the necessary technical infrastructure. The CEFTA agreement, which includes Kosovo, Serbia and North Macedonia, applies no customs duties to the movement of goods within the region; Bulgaria, as an EU member, sits outside CEFTA but is part of the EU single market instead.

The automotive supply industry stands out especially in Serbia and North Macedonia, with opportunities to integrate into the supply chains of international manufacturers. IT and software development/outsourcing is a growing field in all four countries, with Serbia's and Kosovo's young and relatively cost-effective workforce offering an advantage here.

For real estate investment, Bulgaria's EU membership and Black Sea coast and Serbia's growing cities (Belgrade, Novi Sad) stand out, while renewable energy in North Macedonia and agriculture in Serbia's Vojvodina region are other notable areas. Identifying the right sector is a step we clarify together based on your investment size and goal.

As a general framework: Kosovo and North Macedonia may stand out if the lowest tax burden is the priority; Serbia if comprehensive incentive packages and free zone infrastructure matter most; and Bulgaria if EU market integration and euro stability are the priority. However, these general tendencies can vary depending on your sector and investment scale.

Incentive programs, tax rates and free zone conditions can change over time, and the final decision is subject to the assessment of the relevant investment agencies and competent authorities. This article is for information purposes; we confirm the current incentive and tax situation together, tailored to your sector, and coordinate the process with our solution partners.