Investing in

Kosova

521€

Average Wage

0-10%

Personal Income Tax

INVESTING IN KOSOVA

Kosova is an active member of the Central European Free Trade Agreement (CEFTA), fostering trade among eight nations. CEFTA promotes fair trade and aligns regulations with EU standards, creating a stable environment for investments. Through our commitment to CEFTA, Kosova ensures a welcoming atmosphere for investors, facilitating mutual growth and economic integration.

Under the Stabilization and Association Agreement (SAA) with the EU, endorsed through the Berlin Process, Kosova dedicates efforts to enhance economic ties and facilitate trade. The SAA commits both parties to establish a bilateral free trade area, fostering non-discrimination and favorable conditions for private investment. Through the SAA, Kosova actively prepares for closer integration with the European Union, ensuring seamless transition and mutual prosperity.

Kosova welcomes foreign investment, applying non-discriminatory principles and protecting investors’ rights through robust legal frameworks. Supported by the Berlin Process, Kosova enhances investment conditions through free trade agreements and forthcoming legislation. This dedication reinforces Kosova’s commitment to fostering a conducive and welcoming environment for foreign investors, driving economic growth and development.

Tax and Customs

Kosova’s tax system stands out for its low tax rates. Kosova’s corporate income tax rate is a flat 10%, making it significantly more competitive than many other European states. This low corporation tax rate is a major factor in luring businesses to Kosova and encouraging both domestic and foreign investment.

Kosova has introduced a simplified VAT system with a standard rate of 18%. However, it is vital to remember that VAT on exported goods and services is set at 0%, making Kosova a very competitive player in international trade. Kosova provides a lower VAT rate of 8% for essential products and services. This simplified VAT structure helps to create a transparent and business-friendly environment, improving the ease of doing business.

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Work permits and visas

Kosova’s legal framework allows foreigners to work within its borders by obtaining a Temporary Residence Permit. This can be obtained at the Republic of Kosova’s diplomatic or consular missions for those who need a visa to enter the country. If the foreigner does not require a visa, he or she may apply for a Temporary Residence Permit through the Republic of Kosova’s Foreigners Division. The applicant can stay in the Republic of Kosova until a decision is reached on this request, which must be made before the short-term residence expires.

Kosova allows citizens from over 100 countries to enter without a visa, which is a significant advantage: https://ambasadat.net/vizat/.This expedited admission process reduces travel plans and increases accessibility for foreigners, making Kosova an even more appealing destination to work. The applicants seeking a Temporary Residence Permit can submit the application personally, or their employer can do it on their behalf. If the Temporary Residence Permit applicant has children, they may submit the request on their behalf.

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Employment

Law No. 03/L-212 on Labour, governs employment and labor law in Kosova and applies to all private sector employees, including foreign nationals working within the country’s borders. However, it is important to note that international missions, as well as diplomatic and consular missions of other states, have their own set of employment regulations.

Individuals who are 18 years or older are eligible to sign work contracts. Furthermore, individuals aged 15 to 18 are permitted to get into working connections, as long as the nature of the work does not put at risk their well-being or development. Every employer is required to declare their personnel to the Tax Administration of Kosova and the Kosova Pension Savings Fund.

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Established Zones

Discover the wealth of opportunities across Kosova’s nine established economic zones by clicking on the respective buttons below. Explore each zone’s investment potential to unlock the keys to economic growth and prosperity.

Business Park in Drenas

Business Park in Drenas was created in 2010 with a surface of 24 ha. Construction of physical infrastructure (roads, electricity, water, sanitation, physical security, green areas, etc.) has been completed.

The Ministry of Trade and Industry has invested in this park. There are currently 41 businesses with a variety of business activities ranging from pharmaceuticals products, elevators manufacturing, metalworking, wood sector, various panels up to plastic recycling. There is no free business space available in this Park.

Business Park in Mitrovica

Business Park in Mitrovica was created in 2012 with a surface of 3.5 ha.

Currently it is filled by 24 businesses that carry out their business activities, ranging from plastics recycling, carpentry, manufacturing of paper bags, textiles, metal products etc.

There is no free business space available in this Park.

Technology Park in Shtime

Technology Park in Shtime was created in 2013 with a surface of 10.7 ha. The first investments for the regulation of physical infrastructure have started in 2014 and ended at the end of 2017.

The Ministry of Trade and Industry through the Kosovo Investment and Enterprise Support Agency (KIESA), along with the municipality, have invested in this park.

There are about 10 businesses located in the Technology Park that carry out their business activities such as: vegetable pickling, production of electric poles from concrete, production of quartz and marble tiles, processing of glass types etc.

There is no free business space available in this Park.

Industrial Park in Mitrovica

Parku Industrial në “Frashër i Vogël-Zhigovina” në Mitrovicë, është krijuar në vitin 2014 me sipërfaqe 48 ha.

Ministria e Tregtisë dhe Industrisë përmes Agjencisë për Investime dhe Përkrahjen e Ndërmarrjeve në Kosovë (KIESA), së bashku me komunën në vitin 2014 kanë filluar investimet e para këtë park, mirëpo në mungesë të mjeteve buxhetore ende nuk është arritur finalizimi i ndërtimit të infrastrukturës fizike, megjithatë ka filluar nënshkrimi i kontratave për vendosjen e disa bizneseve, duke përfshirë veprimtari të ndryshme si: prodhimin e mobileve, prodhimin e ngjyrave dhe ngjitësve, prodhimin e dyerve nga druri, përpunimin e mbetjeve medicinale etj.

Deri me tani veprimtarinë biznesore ka filluar vetëm një biznes.

Agro-Industrial Zone of Suhareka

Zona Agro-Industriale, është krijuar në vitin 2015 me sipërfaqe prej 28 ha. Kanë filluar investimet e para në këtë zonë, respektivisht në rrethoj, rrymë dhe ujë.

Ministria e Tregtisë dhe Industrisë përmes Agjencisë për Investime dhe Përkrahjen e Ndërmarrjeve në Kosovë (KIESA), së bashku me komunën në vitin 2015 kanë filluar investimet në këtë zonë, mirëpo në mungesë të mjeteve buxhetore ende nuk është arritur finalizimi i ndërtimit të infrastrukturës fizike për të u vendosur bizneset, megjithatë ka filluar vendosja e bizneseve në këtë zone ekonomike.

Technology Park in Lipjan

Parku Industrial në Lipjan, është krijuar në vitin 2016 me sipërfaqe 56 ha.

Ministria e Tregtisë dhe Industrisë përmes Agjencisë për Investime dhe Përkrahjen e Ndërmarrjeve në Kosovë (KIESA), në bashkëpunim me komunën e Lipjanit në vitin 2016 kanë filluar investimet e para investuar në ndërtimin e infrastrukturës fizike në këtë zonë ekonomike duke bërë nivelizimin e terrenit dhe njëherit planifikohet të vazhdohet me investime në rregullimin e infrastrukturës fizike, si në rrugë, rrymë dhe ujë etj.

Industrial Park in Shiroka – Suhareka

Parku Industrial në Shirokë, është krijuar në vitin 2017 me sipërfaqe prej 162 ha, ku aktualisht janë të vendosura një numër i bizneseve duke ushtruar veprimtarinë biznesore.

Bizneset që janë të vendosura ushtrojnë veprimtari të ndryshme si p.sh. prodhimin e këpucëve, fasadave, përpunues i pijeve freskuese, prodhimin e elementeve nga betoni, përpunim dhe konservim të perimeve, përpunimin e mermerit dhe granitit etj.

Ministria e Tregtisë dhe Industrisë përmes Agjencisë për Investime dhe Përkrahjen e Ndërmarrjeve në Kosovë (KIESA), së bashku me komunën e Suharekës, në vitin 2017 kanë filluar investimet e para në rregullimin e infrastrukturës në këtë zone, si dhe janë duke vazhduar investimet me qëllim të lehtësimit të ushtrimit të veprimtarisë biznesore.

Industrial Park in Burdika – Viti

Parku Industrial në Viti, është krijuar në vitin 2017 me sipërfaqe prej 15.50 ha.

Ministria e Tregtisë dhe Industrisë përmes Agjencisë për Investime dhe Përkrahjen e Ndërmarrjeve në Kosovë (KIESA), së bashku me komunën e Vitisë, në vitin 2017 kanë filluar investimet e para njeherit janë duke vazhduar investimet në ndërtimin e infrastrukturës fizike për vendosjes së bizneseve në ketë park.

Industrial Park in Lumadh – Vushtrri

Parku Industrial në Lumadh, është krijuar në vitin 2018 me sipërfaqe prej 14.86 ha. Ministria e Tregtisë dhe Industrisë përmes Agjencisë për Investime dhe Përkrahjen e Ndërmarrjeve në Kosovë (KIESA), në vitin 2019 ka filluar investimet në Ndërtimin e infrastrukturës fizike për vendosjes së bizneseve në këtë park.

Documents

Below are all the essential documents required to initiate the application process for establishing an economic zone.

Application

Administrative guidelines

Laws

Projects

National Council for EC

Decisions & Approvals

Economic Zones

Explore comprehensive details regarding economic zone development services, economic free zones, and the initiative for establishing an EZ.

Economic Zone Development Services

Economic Free Zones

The initiative for establishment of an EZ

START A BUSINESS

IN KOSOVA

01

See the laws and policies

Foreign corporations operating in Kosova have the same rights as domestic businesses, according to Kosova legislation. Kosova does not have an investment screening system. Foreign investors have no licensing limitations, and joint ventures do not require necessary domestic partners.

Kosovo has achieved a milestone by obtaining its first-ever sovereign credit rating. Kosovo’s newly assigned credit rating of BB- by Fitch Ratings signals a positive environment for investment and easier access to finance. The newly obtained rating brings Kosovo numerous advantages, including reduced borrowing costs, enhanced foreign investment prospects, increased access to global capital markets, a boost in international recognition, and expedited structural economic reforms.

Non-domestic companies can conduct business in Kosova but must register as a legal entity with the Kosovan Business Registration Agency (KBRA).
The laws and regulations on starting and owning business operations and engaging in any type of remunerative activity apply.
Both domestic and international private entities are treated equally. Kosova legislation allows private organizations to establish, acquire, expand, or sell interests in firms without restriction. Kosova legislation grants foreign corporations the same privileges as native ones.

For further information, download the pdf containing laws and regulations:

LAW No. 06/L-016 ON BUSINESS ORGANIZATIONS: https://mint.rks-gov.net/desk/inc/media/6A900B99-925A-4E08-A1E7-983D96DA977C.pdf

For more information regarding Credit Rating: https://mfpt.rks-gov.net/NewsDetails/8/2390

02

Register within 3 days

Your first step is to select the appropriate application form based on your business type. Whether you’re a natural person or a corporation, understanding your business structure is critical since it will define which form you need to fill out.

Obtaining The Form, which can be obtained in two ways:

At any KBRA center
Downloaded from the official KBRA site.

KBRA centers offer in-person assistance to help you fill out all of the form’s mandatory fields. You can also get instructions on the KBRA website.

An application can be submitted at any Kosova Business Registration Agency (KBRA) municipal center, based on the entity’s main office or site of activity. The list of municipal centers is available in this KBRA.

The KBRA registers branch within two working days of the application date. Registration documents in Albanian, Serbian, or English that differ from those of the branch director(s) can be filed with the KBRA. Registration with KBRA is free of charge. The initial registration application should be filed to the Kosova Business Registration Agency (KBRA) at any municipal center. The location should be appropriate for the primary office or area of business activities. The official KBRA website features a list of municipal centers.

For further information and to download the form, visit KBRA following links:

https://arbk.rks-gov.net/Page/21
https://arbk.rks-gov.net/Page/33

03

Open a Bank Account

Visit Your Chosen Bank: The presence of the director(s) is required to open the account. Make sure to bring all necessary documentation.

Agreement of the Branch: Required only for foreign companies opening a branch in Kosova.

Due Diligence by the Bank: The bank will carry out its due diligence procedures, cross-check the documents, and confirm that they fit all standards.

Account Opening: Once the bank is pleased with the verification process, it will open your business account.

Following the opening of the bank account, you must immediately register with the Tax Administration of Kosova (TAK) to get the Fiscal Number Certificate and VAT Certificate. This connects your firm with Kosova’s tax regulations and is a basic requirement for all MSMEs (Micro, Small, and Medium Enterprises).

Opening a bank account for your MSME in Kosova is a simple process, albeit it requires extensive documentation. Make sure you have all of your documentation ready, and keep in mind that the director’s attendance is required throughout the process. After successfully opening your bank account, you’ll be well on your way to properly managing the financial side of owning a business.

For further information visit KBRA website: https://arbk.rks-gov.net/Page/33