Kosovo Opportunities

Why Kosovo?

Though Kosovo is a young country with 2 million of population, which might not be interesting as a market but strategically it is perfect place for Indian SME or startup companies who wants their presence in Europe and who wants to enter in European market enjoying the benefits of their existing FTA with Balkan countries and Other European countries.

Who are the BALKAN Countries?

Extending to the south from central Europe into the Mediterranean Sea, the Balkan Peninsula includes the countries of Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Greece, Macedonia, Montenegro,Romania, Serbia, Slovenia, and the geographical/political region of European Turkey.
The region has a combined area of 550,000 km² and an approximate population of 55 million people. And The European Union covers over 4 million km² and has 508 million inhabitants the world’s third largest population after China and India.

Low Operating Costs

The main advantage of the Kosovar labor force is its low operating cost. With the average monthly wage estimated at €360, it is the most competitive in Europe.

Lowest Income Tax

Mandatory pension contribution: 5%

Tax on Dividends: 0%

Value Added Tax

Value Added Tax (Law No.03/L- 146) is applied to all importers and businesses with an annual turnover in excess of €50,000. The VAT rate stands at 16 percent and is levied on all goods and services, with an exemption for certain agricultural and capital goods (on which VAT is 0 percent). Exporters receive full VAT reimbursement for exported goods.


Kosovo is a member of Central European Free Trade Agreement (CEFTA) and has signed Free-Trade Agreements (FTA) with Albania, Macedonia, Croatia, Bosnia-Herzegovina, and Turkey. The Stabilization and Association Agreement aimed at liberalizing trade with the EU entered into force in April 2016. Additionally, Kosovo has signed double taxation treaties with Albania, Macedonia, Slovenia, Turkey, the United Arab Emirates, and the United Kingdom. Older treaties with Hungary, Netherlands, Germany, Finland, and Belgium from the time of the former Yugoslavia still apply for Kosovo.

Kosovo is member of the European Common Aviation Area and member of the Athens Process on Energy for the Southeastern Europe Energy Community Treaty.

More information on Kosovo’s trade agreements can be found on the website of the Ministry of Trade and Industry at: Ministry of Trade and Industry.

how can we help you?

Contact us at the Indo-Kosovo Chamber Of Commerce office nearest to you or submit a business inquiry online.