For companies seeking to invest in the country with the lowest food basket and the lowest average wage in the region, with easy access to EU, CEFTA, US, Japan and Norway markets, Kosovo certainly represents an extremely attractive opportunity. A foreign investor can register his business in only 2 days, free of charge and with zero charter capital (for LLC).
The improved credibility of doing business climate in Kosovo is also proven by important international institutions.
The World Bank Doing Business Report 2018 confirms Kosovo's substantial progress in improving the business climate and the same report places Kosovo at 40th place in the world out of 190 countries. In addition, Kosovo is the only European country in the list of 10 reforming countries within a one-year evaluation period.
Currently, VAT is at the level of 8 percent for basic products (services and food basket), and 18 percent for other products. Corporate Income Tax is 10 percent, and on dividend is zero percent, while personal income tax is progressive, reaching to a maximum of 10 percent.
According to statistics of the Central Bank of Kosovo, the value of Foreign Direct Investments from 2007 to date has amounted to over EUR 3 billion. Kosovo’s main trading partners are the countries of the region, as well as the European Union. In 2014 approximately 60 percent of imports are estimated to come from European Union states.
The official currency used in Kosovo is the EURO, which seems to have helped in avoiding inflation.
It is estimated that from 2003 to 2015 more than 5 thousand international businesses have been registered in Kosovo, whereas their investments are focused on trade, finance, energy, infrastructure, catering, tourism and construction.
Despite being a small country, Kosovo's underground resources are estimated to be worth hundreds of billions of dollars. Studies have shown that Kosovo is extremely rich in lignite and is estimated to have over 12 billion tonnes of reserves, ranking it fifth in the world. There are also large reserves of lead, zinc, silver, gold, nickel, chrome, bauxite, aluminium, magnesium and other mineral resources.
The previously adopted fiscal policies, and the new measures undertaken by the current Government to exempt all producers who import on their own, or through contractors, from excise tax and customs duty, and to postpone VAT on raw material used in the production process, are expected to further strengthen the private sector, and Kosovo’s economy in general. The adoption of another extremely important Law on Strategic Investments is seen as a great opportunity for bringing FDIs to the country.