Investing in Kosovo

General Data

Geography
Land area: 10,908 km2
Terrain: Low flood plains throughout central Kosovo, surrounded by mountains
to the north, west and south.
Land Use: 53% agriculture, 39% forests
Largest City: Prishtina - est. pop. 500,000

Population
Population Description: approximately 2.2 million people composed of about 90% Albanian, 5% Serbs, 2% Muslim Slavs (Bosniaks, Gorani), 2% Roma and 1% Turks
Distribution: 42% urban, 58% rural
Diaspora: app. 500,000 people living abroad.
Languages: Albanian, Serbian, English

7.3 Avoiding Double Taxation
Currency: EURO, GDP 2007: €2,378 billion, Per capita: € 1.150

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: 87,960 SME in 2008, app. 47% of total SME engaged in trade industry. 500 Socially Owned Enterprises of which 300 already privatized

Budget: In 2008 totalling app. 1,090 € million.

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

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

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

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

Legal Framework
Applicable Law: Laws of the Republic of Kosovo, UNMIK Regulations, Instructions and Administrative Directions; The law in force on 22 March 1989

Regulations available at:
www.assembly-kosova.org
www.unmikonline.org/regulations/unmikgazette/index.htm