Investing in Kosovo

Investment Opportunities and Economy

Kosovo offers excellent investment opportunities in mining and energy, agriculture, food processing, tourism, infrastructure, construction, automotive components, and textiles. For additional information on investment opportunities contact IPAK Vienna at www.ipak-vienna.org

Currency: EURO

Gross Domestic Product (GDP):
In 2007: 2,378 bn euro; GDP growth rate: 3.5%; GDP growth comes mostly from private sector (10% growth only in 2006).

Inflation:
Since 2004 close to 0 percent; 2007: 2%.

Financial Sector:
Two tier banking system consisting of Central Banking Authority of Kosovo and 8 private banks, 9 insurance companies and 2 pension schemes.

Enterprises:
Over 62,000 SME in 2008; 500 Socially Owned Enterprises of which 300 already privatized.

Budget: In 2008 totalling over 1 bn.

Tax System:
VAT 15%, Corporate Profit TAX 20 %, Wage Tax progressive max. 20% (Tax reform in process).

Tariff duties:
Customs duties: 10% on imports; Excise tax on fuel, tobacco alcohol and luxury goods. No duties and taxes on exports.

Free trade:
Customs-free access to the EU market based on the EU Autonomous Trade Preference (ATP) Regime, Central European Free Trade Area – CEFTA.

Labour market:
Average wage 236, multilingual, skilled and well educated work force.

Location factors:
Competitive and well educated workforce, enviable natural resources (mining, agriculture), low taxes and a transparent tax system, high purchase power through remittances (app. 400 million annually), customs free access to the EU market and CEFTA members market.