Why Set Up Your Business in Bosnia and Herzegovina?
Situated in the western Balkan Peninsula of Europe, Bosnia and Herzegovina are two regions of the country with vaguely defines border between them. The larger region of Bosnia covers the northern and central parts of the country while Herzegovina occupies the south and southwest. Bordering Croatia, Serbia and Montenegro, Bosnia and Herzegovina is the home to the population of 3.5 million.
An Overview of Bosnia and Herzegovina’s Economy
As of now, Bosnia and Herzegovina is an EU potential candidate country and is currently embarking on a new growth model amid a period of slow growth and the global financial crisis. Bosnia and Herzegovina became a full member of the Central European Free Trade Agreement in September 2007, creating a free trade zone with access to a large consumer market. Trade has been the impetus behind the economic growth of Bosnia and Herzegovina. Bosnia and Herzegovina is the 74th largest export economy in the world. The economy of Bosnia and Herzegovina depends heavily on the export of metals, energy, textiles, and furniture. The top export destinations of Bosnia and Herzegovina are Germany, Italy, Croatia, Serbia and Slovenia. The top import origins are Croatia, Serbia, Germany, Italy and Hungary. The government of Bosnia and Herzegovina has successfully implemented the value-added tax in 2006 where it helped rein in gray-market activity and provided a steady source of revenue for the government.
Why Invest in Bosnia and Herzegovina
Bosnia and Herzegovina is a forward-moving country that has achieved monumental economic growth over the years. Through its strong reforms, Bosnia and Herzegovina has significantly improved its business environment and investment climate. Bosnia and Herzegovina welcomes foreign investors with its sound incentives.
One thing worth mentioning is the Law on the Policy of Foreign Direct Investments of Bosnia and Herzegovina. Under the law, foreign investors are blessed with privileges and incentives:
- National treatments of foreign investors, i.e., foreign investors enjoy the same rights and obligations as residents of Bosnia and Herzegovina.
- Foreign investors are eligible to open accounts in any commercial bank in domestic and/or any freely convertible currency on the territory of Bosnia and Herzegovina.
- Foreign investors are granted the permission to freely employ foreign talents (subject to the labor and immigration laws in Bosnia and Herzegovina).
- Foreign investors have the same property rights with respect to real estate as Bosnia and Herzegovina legal entities, that means foreign investors may own real estate in Bosnia and Herzegovina.
Let us take a quick look at the reasons why investing in Bosnia and Herzegovina?
- Strategic location
- Rich in natural resources
- Sound legal environment
- Low tax rates
- Well educated and highly skilled labor force
- Stable currency
- Regional and bilateral Free Trade Agreements
On a final note, Bosnia and Herzegovina is rising as one of the favored investment hotspots in Europe due to its fast-growing economy. If you are planning to traipse into the EU markets, Bosnia and Herzegovina has a lot to offer.