Why Set Up Your Business in Kosovo?
Home to a population of approximately 1.9 million, Kosovo is a landlocked country that shares borders with Serbia to the north and east, Macedonia to the south, Albania to the west, and Montenegro to the northwest. Kosovo is the smallest country in the Balkans, a region consists of Croatia, Bosnia and Herzegovina, Montenegro, Macedonia, Serbia and Albania. Kosovo’s location, which is in the heart of the Balkans, serves as a connecting point between the South Eastern European countries. As such, the geographical location is significance to its economic development where people can access to the growing market in Balkans and Central Europe that covers 28 million potential customers through Kosovo.
An Overview of Kosovo’s Economy
Sat in the South Eastern Europe, Kosovo’s economy is part of the region’s economic integrations, which offer opportunities for market expansion in a very wide area. Kosovo’s economy is new and dynamic. It transformed from a centralist and controlled economy, to a free-market economy. Kosovo joined the World Bank and International Monetary Fund In June 2009, and its economy has outperformed the neighboring countries, achieving economic expansion every year since independence. Indeed, Kosovo has made monumental progress after its independence in many areas such as political stability and stable economy with continuous growth. The Kosovo’s government welcomes foreign investors by creating a stable macroeconomic environment with a good financial system, sound fiscal policy, as well as lower tax rates in the region. The efforts have increased the competitiveness of the domestic economy in the regional market.
Why Invest in Kosovo
Among many others, the low taxes, rich resources and supportive business environment, are the impetus behind the rapidly growing economy.
- Strategic geographical location: Kosovo’s location has its geostrategic significance where it connects the country to the region and the rest of Europe and offering access to the main ports of the Adriatic and Black seas.
- Free access to a market of 520 million consumers: Kosovo has a liberal regime in a free trade market and enjoys free access to the EU market under the EU Autonomous Trade Preferences (ATP). Moreover, Kosovo has a free trade agreement with Central European countries, CEFTA. These free trade agreements provide Kosovo with a duty-free market of more than 520 million consumers.
- Modern Legislation: Kosovo has developed its legal system that is compatible with EU legislation while maintaining the same legal regime for both domestic and foreign investment. In addition, Kosovo has adopted the International Standards for Financial Reporting and offers “a national treatment” for foreign investors.
- Attractive tax system: Kosovo has a direct and simple tax system. Kosovo offers one of the lowest rates for corporation tax in the region at 10%. While customs duties on imports, in general, are 10%, there are no import duties on capital goods and agricultural production means.
A snapshot of why investing in Kosovo:
- Low and simplified tax system.
- Young and motivated workforce with strong entrepreneurial skills (70% under the age of 35)
- Abundant natural resources like coal, zinc, lead, ferro-nickel and fertile agricultural land.
- Free and easy access to European Union market and neighboring markets
- Strong banking system
- Modern legal structure that is compatible with the EU
On a final note, Kosovo is an important location for business and investment in the region that offers a multiplicity of advantages: a well-educated workforce, natural resources, advanced infrastructure, a good fiscal policy and the lowest taxation in the region. If you are planning to traipse into the EU markets, Kosovo has a lot to offer.