Government of the Republic of Kosovo Ministry of

Government of the Republic of Kosovo Ministry of Trade & Industry

FDI 2007 – 2014 by Country (EUR millions) 426 263 254 257 208 184 124. 5 90. 4 Germany UK Turkey Switzerland Source: Central Bank of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Sllovenia Austria Albania USA 78. 7 The Netherlands 36. 2 35. 2 15. 3 Italy France Croatia

FDI by Sectors (as % of total FDI) Financial Services 10% Other 5% Mining 5% Transport & Telecommunication 8% Construction 21% Trade Services, Cleaning, Collection 4% Production 12% Real Estate 32% Source: Central Bank of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry

Why invest in Kosovo? Government of the Republic of Kosovo Ministry of Trade & Industry

Liberal Trade Regime • CEFTA 2007 • Central European Free Trade Agreement Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Moldova, Montenegro, Serbia • Population: 21 million • GDP (2012): EUR 150 billion • Autonomous Trade Preferences with the European Union • Unlimited duty-free access to the EU market, renewed 2011 - 2015 • Trade Preferences with: Japan & Norway and ongoing with Turkey Government of the Republic of Kosovo Ministry of Trade & Industry

Lowest Operational Costs in Europe • Corporate profit tax: 10% • Income tax 0 - 10 % (Progressive) • • € 0 – 80 € 80 – 240 € 240 – 450 € 450+ = 0% = 4% = 8% = 10% • Mandatory pension contribution: 5% • VAT: 18 %, except for utilities and food basket which is set at 8% • Tax on Dividends: 0% • Cost of electricity at 0. 055 – 0. 10 EUR per k. Wh (22 cents in EU) • Average Wage: 300 EUR/month (3, 103 EUR in Western Europe) Government of the Republic of Kosovo Ministry of Trade & Industry

Customs exemptions • Production lines and machinery needed for production • Raw materials for production • Information technology (IT) equipment • Newspapers and periodicals • Equipment and materials imported for electronic and hard copy media Government of the Republic of Kosovo Ministry of Trade & Industry

A Good Strategic Location • Located in the heart of Balkans, Kosovo offers easy access to EU via air, road, railway, and three sea ports: ü Thessaloniki, Greece ü Durres, Albania ü Bar, Montenegro Government of the Republic of Kosovo Ministry of Trade & Industry

Easy access to 20 million people can be reached within a 5 -hour drive 20 mm 8 mm 5 ho urs 2 mm Government of the Republic of Kosovo Ministry of Trade & Industry

Legislation and Agreements • Legal system completely re-built since 1999, largely EU-compatible • Law on Foreign Investments ensures equal treatment foreign and domestic investors • Bilateral Agreements on Investment Protection and Promotion: • Protection and Security • Free Transfer of Funds • Free Repatriation of Profits and Dividends • Protection against Retroactive Application of Laws • Protection against Expropriation • Land available on several business parks across Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry

Business Environment in Kosovo is the 5 th most dynamic reformer in the WORLD! – World Bank In 2014, Kosovo improved its ranking in World Bank Doing Business Index by 12 places, leaving behind almost all regional countries. Source: World Bank Doing Business Index 2013 Government of the Republic of Kosovo Ministry of Trade & Industry

Free Economic Zones • In March 2013, the Government of Kosovo passed the Law on Economic Zones with the aim to set up Free Economic Zones which will be developed based on the most successful models in the world. • In March 2014, with the decision of the Government of Kosovo, three Free Economic Zones were established: Gjakova, Mitrovica, and Prizren. • All Free Economic Zones will allow international companies to enjoy special privileges while products are produced for exports. Government of the Republic of Kosovo Ministry of Trade & Industry

Good Investment Opportunities First Core Target Sectors • IT - Business Process Outsourcing (BPO) and Customer Support Centers • Agribusiness – Food Processing and Packaging • Mining and Minerals • Renewable Energy • Textile and Leather Processing • Wood and Furniture • Metal Processing Government of the Republic of Kosovo Ministry of Trade & Industry

How can KIESA help you? Government of the Republic of Kosovo Ministry of Trade & Industry

Kosovo Investment and Enterprise Support Agency Mission: KIESA is a Government sponsored body whose mission is to attract, retain and grow foreign investment in Kosovo, promote Kosovo exports and develop local businesses by ensuring the existence of a pro-business environment and pro-active support for both foreign and local private sector businesses. Government of the Republic of Kosovo Ministry of Trade & Industry

How can KIESA help you? • Provide comprehensive advice and support to help you obtain all necessary approvals to enable a fast start-up • • Registering your business Getting licenses and permits necessary to start your operation Arrange meetings with all local and central institutions Arrange visits and meetings with any business of your interest • Help you to identify suitable property options to accommodate your operation • We have several business parks and business incubators where you can start your operations • Provide information on different projects and partners with whom you can collaborate • Provide industry specific information Government of the Republic of Kosovo Ministry of Trade & Industry

How can KIESA help you? • Provide comprehensive advice and support to export out of Kosovo • Promote your products abroad • Assists financially and organizationally to participate in different fairs • Arrange visits and meetings with many foreign businesses of your interest • Help you to improve your products’ presence abroad • Find international partners for your products • Keep you up-to-date with news and relevant facts and figures • After-care service Government of the Republic of Kosovo Ministry of Trade & Industry

What the government has done so far? • Reduction of taxes on normal goods (gov. decision no. 2/20) • New tax brakes (gov. decision no. 01/20) • Electronic procurement system (gov. decision no. 09/20) • New tax package to stimulate formal economy (gov. decision 01/20) Government of the Republic of Kosovo Ministry of Trade & Industry

What we intend to do soon? • Law on Strategic Investments • Tax incentives for new investments • Tax holidays according to investment threshold • Fund for Investment and Employment (FIE) • Credit Guarantee Fund • IT Fund • Integrated Border Management for simplifying trade procedures with neighboring countries • Customs exemption of production in strategic sectors • Assist producers in certifying products with international standards • Grants to producers for purchasing production machinery Government of the Republic of Kosovo Ministry of Trade & Industry

Web: www. invest-ks. org Government of the Republic of Kosovo Ministry of Trade & Industry

Contact Information Ministry of Trade and Industry Kosovo Investment and Enterprise Support Agency Tel: +381 38 200 36 585 info@invest-ks. org www. facebook. com/Business. In. Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry