Land area: 10,908 km²
Terrain: Low flood plains throughout central Kosovo, surrounded by mountains to the north, west and south.
Land Use: 52 % agriculture, 39 % forests
Capital: Prishtina - est. population 500,000


Population: approximately 2.2 million
Ethnic composition: 90 % Albanians, 5 % Serbs, 2 % Muslim Slavs (Bosniaks, Gorans),
2 % Roma and 1 % Turks
Distribution: 42 % urban, 58 % rural
Diaspora: over 500,000 people living abroad
Languages: Albanian, Serbian, English.

Legal Framework

Applicable Law: Laws passed by the Kosovo Assembly enacted on 15 June 2008 and thereafter; Regulations enacted by the United Nations Interim Administration in Kosovo (UNMIK) between 10 June 1999 and 14 June 2008; Laws dated prior to 22 March 1898, enacted before the abolishment of Kosovo's autonomy within the Social Federal Republic of Yugoslavia; and laws dated between 22 March 1989 and 10 June 1999, enacted after the abolishment of Kosovo's autonomy, provided that they are not discriminatory and are required to fill a legal gap.

Regulations available at:

Economic Description

Currency: EURO
Gross Domestic Product (GDP): In 2009: € 3.792 billion, Per capita: € 1,731.
Inflation: On average 2.2 % per annum over the past five years.
Financial Sector: Two tier banking system consisting of Central Bank of the Republic of Kosovo and eight private Banks, 10 Insurance companies and two pension schemes.
Enterprises: over 40,000 active SMEs in 2009, app. 50 % of total SMEs engaged in trade industry. 500 Socially Owned Enterprises of which 400 already privatized.

Budget: In 2010 totalling app. € 1.461 billion.
Tariff duties: 10 % customs duties on imports, no duties on raw materials, capital and intermediary goods; Excise tax on fuel, tobacco alcohol and luxury goods. No duties and taxes on exports.
Tax System: VAT 16 %, Corporate Profit Tax 10 %, Personal Income Tax progressive max. 10 %.
Free trade: Customs-free access to the EU market based on the EU Autonomous Trade Preference (ATP) Regime, Central European Free Trade Agreement – CEFTA and preferential treatment of exported goods in the US market.

Labour market: Average labour cost 262.5 Euro in 2009, skilled and well educated work force.
Location factors: Competitive, well educated and young workforce, enviable natural resources (mining, agriculture), low taxes and a transparent tax system, customs free access to the markets of CEFTA, EU and USA, Euro as official currency.

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