Top10 Reasons to Invest in Kosovo_2010

7/27/2019 Top10 Reasons to Invest in Kosovo_2010

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REPUBLIC OF KOSOVO

Ministry of Trade and Industry

reasons

ToP 10

IN KOSOVO


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Youngest populationin Europe

With an average age o25 years, Kosovohas the youngest population in Europe.Albanian and Serbian are the ociallanguages, English and German are

widely used. With two public andnumerous private universities (over40,000 students), a high knowledgesociety is emerging rom the young anddynamic population. Many Kosovars whohave lived and studied abroad are actingas a bridge to Western cultures andguarantee business success or oreignoperations in Kosovo.

High availability of skilledand cost effective labor

Te average monthly cost o labor inKosovo is slightly over 250Euro. Wagesin Kosovo are unburdened by costlysocial contributions, unlike those in thecountries o the region. With ca. 300,000existing jobseekers and ca. 20,000 (8,000graduates) new jobseekers entering thelabor market every year, a sucient streamo labor o all proles is guaranteed. Anyoreigner who has visited Kosovo willconrm the exceptional dynamic andentrepreneurial spirit o the Kosovars.

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EURO as theofficial currency

Euro is the ocial currency in Kosovo,thereby eliminating currency andexchange rate risks. Te Euro givesKosovo a considerable advantage over its

competitors in the region by making itmore attractive to oreign investment andby ensuring nancial and macroeconomicstability. It also enables Kosovo to oferthe lowest transaction costs in the region.

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Free access to marketsof EU, US and CEFTA

Kosovo derives three major benets romtrade liberalization, namely improvedexport possibilities, a better investmentenvironment, and stable relations with itsneighbors. Exporters enjoy ree access toa market o over 500 million consumers.Kosovo is a member oCEFTA and itbenets rom non-reciprocal, customs-ree access to the EU market based onthe EU Autonomous rade Preerence(ATP) Regime. Kosovo goods also enjoypreerential treatment in the US market.

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Low taxes

Kosovo has a simple and straightorwardtax system. International AccountingStandards apply.Te tax burden is very low:

PersonalIncomeTax0-10 %

VAT 16 % CorporateIncomeTax10 % Mandatorycontributionsfor

employees only5 % o gross salaries

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Stabilizing politicalenvironment

Kosovos independence marks the end toa long period o economic and politicaluncertainty. In addition to increased sta-bility being created in the entire region,it presents a perspective o regional eco-nomic development and EU integration.So ar, Kosovo has been recognized bythe most powerul nations worldwide andhas become a member o international

institutions such as the InternationalMonetary Fund and the World Bank.Te international presence in Kosovo isstrengthening the stabilization processand the rule o law and is bringing legalsecurity to oreign investments.

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EU-compatible legislation

Since 1999, Kosovoslegal system hasbeen re-built andis now completelycompatible with the

EU legislation. Foreign investors enjoynational treatment, protection againstexpropriation and nationalization. Terepatriation o prots and transer oinvested capital is ree and unrestricted.All laws and regulation in Kosovo areavailable online and in English, makingKosovos legislation system the mosttransparent in the region

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Strategic location anddeveloping infrastructure

Located in the heart o the Balkans,Kosovos capital Prishtina is one hourdriving time to any neighboring country.Ongoing inrastructure projects includemodern highway connections to Albania,Serbia, and Macedonia. Te driving time

to the Albanian Sea Port o Durres isthree hours, and Tessaloniki Sea Portour hours. In addition, the recentlyconcessioned Prishtina InternationalAirport ofers daily air connections tomany major European cities.

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Great investmentopportunities

Kosovo is well endowed with naturalresources and agricultural land. Te sectorso agriculture, ood and wood processing,

construction, textile, IT, automotivecomponents, energy, and mining ofer themost opportunities or oreign investors.Bearing in mind the advantages o ayoung, skilled and multilingual populationas well as the low taxes, IT-outsourcing isan interesting opportunity.

Sound banking system

Kosovos nancial sector has beenbuilt on completely new oundations.All nancial institutions in Kosovo

are private and have remained stabledespite the nancial crisis. Tere areeight licensed banks, two pension unds,19 other nancial intermediaries, 28nancial auxiliaries and ten insurancecompanies in Kosovo. Six out o eightbanks in Kosovo are oreign-owned.

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Nussdorfer Strasse 20 / 23A-1090 Vienna, Austria

Tel: +43 (1) 890 50 26Fax: +43 (1) 890 50 26 26Web: www.ipak-vienna.org,

www.eciks.orgE-Mail: [email protected],

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Top10 Reasons to Invest in Kosovo_2010