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Real Estate Investment in Kosovo

Real Estate Investment in Kosovo: Reasons to invest in Kosovo – Profit for potential foreign and local investors. Some of the benefits from investing in Kosovo are reduced by taxes, rich resources, and a supportive business environment.

  • Taxes are much lower in Kosovo than in neighboring countries.
  • The tax system has been kept very simple.
  • Population – Young and motivated, 70% under 35 years of age
  • Natural sources: coal, zinc, lead, and fertile agricultural land.
  • Free access to EU markets and neighboring markets
  • Modern institutes in support of businesses
  • Simple and quick process for business registration (within 3 days)
  • Secure banking system
  • Modern legal structure and by the European Union, and
  • The official currency is the euro, which eliminates euro-zone risk.

Since its independence, Kosovo has made great progress in many areas of its development such as increasing political stability, increasing the level of security, a stable economy with steady growth, completion of legislation, and more.

It has become an important part of the regional cooperation initiative, Through which a common regional market is created, as well as the abolition of customs duties, the elimination of trade barriers, and the opening of new approaches. Kosovo institutions have functioned rapidly and continue to meet the standards required for EU membership.

A stable macroeconomic environment has been created, with a sound financial system, improvements in fiscal policy were made in the application of lower tax rates in the region. Among the important objectives that our country has set for itself, there is a growing competition of the domestic economy in the regional market.

There has been progressing in establishing modern infrastructure within Kosovo and in its relations with the region. It is worth noting here that through the construction of the highway and Albania’s commitment the relationship with Albania will soon build the railway line connecting the two countries. Through this route, Kosovo is connected to its port at a distance of only two and a half hours.

Soon the construction of highways connecting Kosovo to Albania, Macedonia, and Serbia will begin, which represents a very favorable opportunity for foreign investors.

Our country offers excellent investment opportunities in other sectors such as agriculture, energy, agriculture, tourism, extraction and processing of metals, etc.

The business registration system in Kosovo is another important factor encouraging the development of investment with simplified procedures, and the quick registration of new businesses for a short period.

All of these points for Kosovo as a very attractive country with investment opportunities for any investor in various sectors, such as privatization, where large public companies and green farms, post and telecoms and concessions such as the Kosovo investment system Personalization is possible from. Power distribution is expected to be done. . In the latter, very favorable opportunities are provided in the provision of physical infrastructure by industrial parks.

Kosovo is working on creating a financial capital market, which will provide an opportunity for investors who want to invest in shares of various companies.

During the year 2010, it is estimated that € 314.6 million was invested, an increase of 8% over the previous year.

Foreign capital has a wide geographic distribution from over 80 countries in the world, where Albania ranks first among many registered businesses.

Custom system

The customs of Kosovo implemented advanced procedures in the clearance of goods through an electronic system – TIMS (Business Information Management System) where 90% of announcements are made through DTI (Direct Trade Input). The approximate average time of cross-border customs clearance is 3 hours.

The customs duties for import into Kosovo are:

  • 0% for goods imported from CEFTA countries
  • 10% for goods imported from all other countries
  • Variable excise tax levels for goods such as tobacco, petroleum, alcohol, etc.

After the change in the customs system, the customs duty was reduced to:

Capital assets

Raw materials for agribusiness and some different sectors in production

Work in process for further processing from 10% to 0%,

The following are exempt from customs duties:

  • Artificial fertilizer
  • pharmaceutical products
  • Surgical Instruments and Instruments
  • Goods used for human purposes
  • Goods used by foreign diplomats and consular missions
  • KFOR
  • International Red Cross
  • UNMIK registered non-governmental organizations aimed at supporting humanitarian and reconstruction programs and projects in Kosovo

Tax system

Tax policy in Kosovo is oriented toward simple rules that provide a broad tax base and the lowest tax rates in the region and beyond. So if you plan to do Real Estate Investment in Kosovo, then it is very important to know Tax Policies in Kosovo. Taxes vary depending on the form of business and annual turnover.

Tax administration implements three main tax regimes:

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

Value Added Tax (VAT) – The main tax in Kosovo is Value Added Tax, VAT, which is paid for goods and services. This tax rate has been set at 16% for all goods irrespective of their origin and 0% for goods dedicated for export. Businesses with an annual turnover of € 50,000 should register for VAT.

Corporate Income Tax – This tax depends on annual turnover every three months. The corporate tax rate is 10% for annual turnover above € 50,000

Personal Income Tax – This type of tax is levied on income from salary, business, rent, interest, real estate, etc. Personal income tax rates on salaries are progressive based on the amount of salary earned and are also the lowest rates in the region and region. European Union countries.

Tax rates are:

  • 0% for 960 Euros / year
  • 4% from 960 to 3000 euro / year
  • 8% between 3001 and 5400 euro / year
  • 5400 Euro 10% in a year

Pension Contribution – The Kosovo Pension and Savings Trust is responsible for the administration and management of personal accounts for retirement savings. This tax is necessary for the employee and the employer. They are required to contribute 5% of the salary from the employee and 5% from the employer to the finance of the employee pension fund.

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