This brochure presents an overview of key issues for those
considering investing or doing business in Kosovo. The information
presented here has been carefully researched, and all efforts have
been made to ensure the information is correct and reflects the
current situation as of December 2016, unless otherwise stated.
Investment in Kosovo offers a brief look into the history and
development of the political, economic and social structures of
Kosovo. The newest state in Europe has been gifted with enviable
human and natural resources, from minerals to fertile agriculture
land, from a young and dynamic labor force to a favorable central
location in the region. The combination of these assets
demonstrates overwhelming potential for investors and will surely
contribute to the growth of the Kosovo economy.
Due to the continuous growth and constant change in Kosovo, it
is important to obtain further, current information before making
any investment decision. We would appreciate the opportunity to
assist you in planning and implementing your investment in
For further information or inquires on any matters discussed in
this publication, please feel free to contact us.
FAST KEY FACTS
10,908 sq. km
53% agriculture, 41% forests
1,815,606 (est. 2012 Kosovo Agency of Statistics)
Average Monthly Labor Costs
EUR 360 (skilled and well educated work force, 2012 est.)
Pristina (est. population 205,133)
Official Languages Albanian, Serbian
Source: KIESA – Kosovo Investment and Enterprise
A BRIEF HISTORY OF KOSOVO
At the heart of the Balkans, Kosovo was part of the Roman
Empire, then Byzantium, and part of the Ottoman Empire in the early
15th century. Kosovo became part of Serbia prior to the First World
War, and part of Yugoslavia just after it. In the Socialist Federal
Republic of Yugoslavia (SFRY), Kosovo enjoyed a certain degree of
autonomy from 1974 to 1989. The SFRY began to break up during the
early 1990's with Slovenia, Croatia and Bosnia and Herzegovina
breaking away from the state. During 1998 the Serbian police and
military took a brutal campaign against ethnic Albanians in Kosovo
which lead Kosovo in the war.
During this campaign over 800,000 ethnic Albanians were expelled
by force from their homes in Kosovo and tens of thousands of people
As a result of the brutal campaign and ethnic cleansing the
International community attempted a settlement at the Rambouillet
Accords, which offered autonomy for Kosovo alongside a NATO
presence. Serbia's failure to agree led to 78 days aerial
bombing on the Federal Republic of Yugoslavia (F.R.Y.).
UN Security Council Resolution 1244 (1999) placed Kosovo under a
transitional ad- ministration, the UN (Interim Administration)
Mission in Kosovo (UNMIK). Under the resolution, Serbia's
territorial integrity was protected, but it was UNMIK that assumed
responsibility for governing Kosovo. KFOR, the NATO-led peace
implementation force, provided military security in Kosovo.
In 2001, UNMIK promulgated a Constitutional Framework, which
established Koso- vo's Provisional Institutions of
Self-Government (PISG). A UN-led process began in late 2005 to
determine Kosovo's future status. Negotiations held
intermittently between 2006 and 2007 on issues related to
decentralization, religious heritage, and minority rights failed to
yield a resolution between Serbia's willingness to grant a high
degree of autonomy and the Albanians' call for full
independence for Kosovo. On February 17, 2008, the Kosovo Assembly
declared its independence from Serbia, which was recognized by the
USA, the majority of EU countries and other nations. Since then,
the Republic of Kosovo has been an independent, sovereign and
democratic country and a potential candidate for European Union
In recent years, the country has accelerated its integration
process into the EU, inabilization and Association Agreement (SAA),
signed on 27 October 2015 and entered into force the 1 of April
Last year, the Swiss Money Laundering Office (MROS) received a blatant message from one of its foreign partner organisations: two not-for profit organisations were holders of Swiss bank accounts whereby the beneficial owner of the bank accounts was suspected of terrorist activities.
This publication provides a summary of the issues including legal, tax and accounting to be considered by those thinking to invest or do business in Albania.
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