Kosovo – Kosovan Investment and Enterprise support agency

Muharrem Fejza str. n.n. Lagja Spitalit, 10000 Prishtine, Republic of Kosovo




A Strategic place 

Located in the heart of the Balkans, Kosovo offers an easy access in European Union (EU), through air, road, railway transport and three see ports, such as:

  • Thessaloniki, Greece: 329.0 km
  • Durres, Albania: 262 km
  • Trivet, Montenegro: 299 km

Business Environment in Kosovo 

The business environment in Kosovo is becoming one of the most competitive in the region. Advantages such as an excellent tax system, abundant natural resources, quick and easy business registration, and transparent laws on foreign investment, make Kosovo an attractive and friendly environment for foreign investors. 

Liberal Trade Regime 

Stabilization and Association Agreement (SAA) with European Union (EU) –is signed in October 2015 and is in power from 1st April 2016. Free Trade Agreement with EU (28 countries).A market above 500 million – third largest in the world with population, after China and India.

Economic Stability 

The real development of the country, measured by the gross domestic product (GDP), has been favorable the past years, showing a positive and continuously increasing trends, despite the effects of the international crisis. The private sector consumption and investments are the most important factors behind economic growth. These investments are mainly being driven by the quickly expanding financial sector. Moreover. Kosovo’s Government runs a stable and forward-looking policy. The tax revenue base has been widened, thus enabling Government expenditures to increase and, in turn, support economic growth.

INFORMATION TECHNOLOGY AND COMMUNICATION – ITC – ITC offers high quality services and the latest technologies to their consumers both local as well as to foreign companies who want to outsource their software development and/or call and support centers.

FOOD PROCESSING AND PACKAGING – Out of total surface area of 1.1 million hectares approximately 588,000 hectares is agricultural land with fertility, nutrient –rich soils.

  • Agriculture contributes about 13% of overall GDP
  • Agricultural products counts 18% of exports
  • A strong tradition in agribusiness 
  • Dairy products
  • Fruits and Vegetables
  • Meat products
  • Winemaking
  • Other Beverages
  • Packaging
  • The Government of Kosovo, together with its partners, provides grants and subsidies for the agriculture sector.

MINING AND METAL PROCESSING – Kosovo has an enviable endowment of natural resources. At 14.7 milliard ton, Kosovo possesses the world’s fifth proven reserves of lignite.
It also has reserves of other minerals such as: aluminum, gold, lead, zinc, copper, bauxite, magnesium, asbestos, chromite, limestone, marble and quartz.

ENERGY – Kosovo has a significant potential of Renewable Energy Sources (RES), including: hydro energy, wind energy, solar energy, biomass, thermal energy, etc.

The Government is working to bring in life the textile sector.
Imports of goods for past year is 100 million euro; export is 25 million euro
Kosovo offers three major benefits for investors: A cheap, well skilled and experienced work force; A solid base of technology that can be acquired through the ongoing process Numerous subcontracting and outsourcing possibilities (with know-how, labour force and other comparative advantages than the country offers, including the friendly business and investment environment);

WOOD PROCESSING – Wood work is considered one of the most strategic sectors with great potential for growth. The total standing volume on public forest is estimated at about 53 million m³. Statistic data shows that 75% of wood processing companies produces final products; 18% of produces semi-final products; and 10% produce row material. Most of wood processing companies has shown positive results during these past years (turnover growth, value added production, increase on employment number, growth in export).

Tourism – The natural wealth of Kosovo represents high quality tourism resources. The mountains south of Kosovo has great potential for winter tourism. One of the most interesting is the ski resort Brezovica in the Sharr Mountains. The resort, situated between 1.700 and 2.500 m above sea level. It offers excellent weather and snow conditions, as well as long ski seasons from November to May


Kosovo still does not offer financial incentives for FDI. However, the Ministry of Labour and Social Welfare offers programs that include

  • Trainings at work
  • Practice at work


The tax policy in Kosovo is oriented towards simple regulations that ensure broad tax basis and prevent tax evasion. Taxes differ based on type of business and annual turnover.

The tax Administration applies three main tax regimens:

  • Value Added Tax (VAT)
  • Corporate Income Tax (CIT)

Personal Income Tax (PIT)

Kosovan Investment and Enterprise support agency

Tel: +383 (0) 38 200 36542
e-mail: info.kiesa@rks-gov.net

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  • Address Muharrem Fejza
  • Zip/Postal Code 10000


Updated on February 6, 2021 at 12:43 pm

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