Frequently Asked Questions

Yes. Kosovo places no restrictions on foreign ownership. A single foreign individual can be the sole shareholder and director of a Kosovo LLC, regardless of nationality or country of residence. No local partner or nominee is required.

Yes. The entire process is handled remotely through a power of attorney. You sign documents in your country of residence, and we handle all filings and government interactions in Kosovo on your behalf. Some banks may require a brief video call for identity verification.

For most international entrepreneurs, the LLC (SH.P.K.) is the right choice. It offers limited liability, flexible governance, no minimum capital, and straightforward tax treatment. If you need external capital raising or formal board governance, a Joint-Stock Company (SH.A.) with €10,000 minimum capital may be more appropriate.

No. A single foreign individual can be the 100% shareholder and sole director of a Kosovo LLC. There are no requirements for local directors, partners, or nominee shareholders.

Your company is fully operational within 4–5 weeks from complete document submission, including registration, tax setup, and bank account opening.

You will need a valid passport copy, proof of address, and basic company details (name, business activities, ownership structure). We prepare the Articles of Association, power of attorney, and all government filing documents on your behalf.

Kosovo is not an EU member state, but it has an EU-aligned legal framework through its Stabilisation and Association Agreement (SAA). Kosovo uses the Euro as its official currency, is a CEFTA member with duty-free trade across the Western Balkans, and has preferential trade access to 27 EU member states through the SAA.

Yes. Kosovo has a Stabilisation and Association Agreement (SAA) with the EU, providing duty-free access for goods. For services, there are no trade barriers. Many of our clients run digital agencies, SaaS companies, and consultancies from Kosovo serving clients across the EU, UK, and US.

Kosovo’s 10% corporate tax plus 0% dividend tax structure means you keep €90,000 on every €100,000 of profit. Estonia’s “0% corporate tax” sounds attractive, but you pay 22% when you distribute profits, leaving you with €78,000. Kosovo also uses the Euro, has lower operating costs, and offers CEFTA market access.

Kosovo applies a flat 10% corporate income tax on net profits. There are no additional surcharges, trade taxes, or solidarity levies. This rate applies equally to all companies regardless of size or profit level.

No. Non-resident shareholders pay 0% withholding tax on dividends distributed from a Kosovo LLC. This is one of Kosovo’s most significant tax advantages compared to virtually every other European jurisdiction.

No. Kosovo is not on any international tax haven blacklist (EU, OECD, or FATF). It has a transparent tax system, participates in international tax information exchange, and maintains double taxation treaties with 20+ countries. The low tax rates are part of a deliberate policy to attract foreign investment.

18% standard rate on most goods and services. 8% reduced rate on defined categories of essential goods and services. 0% on exports. B2B services exported to foreign clients are zero-rated under the reverse charge mechanism.

€30,000 annual turnover. Once your taxable supplies exceed this amount in a calendar year, you must register with TAK within 30 days. Voluntary registration is available below the threshold.

Monthly. VAT returns and payments are due by the 20th of the month following the reporting period.

Yes. Kosovo has active double taxation treaties with 20+ countries including the UK, Germany, Switzerland, Austria, Netherlands, Ireland, UAE, and Turkey. These treaties prevent double taxation and often reduce withholding rates on cross-border payments.

Kosovo companies must maintain proper bookkeeping records, file quarterly tax declarations, submit an annual corporate tax return by March 31, and file monthly or quarterly VAT returns if VAT-registered. Companies above certain thresholds require audited financial statements.

No. The 0% dividend rate specifically applies to non-resident shareholders. You do not need to visit Kosovo to form or operate your company. The entire process can be handled remotely.

Kosovo does not impose a specific minimum salary requirement for company directors or shareholders. However, if you are performing work for the company while present in Kosovo, a reasonable salary should be documented. Many foreign owners pay a nominal or zero salary and extract profits as dividends.

Bank account opening is coordinated remotely in most cases. Some banks may request a brief video call for identity verification. We prepare your complete KYC pack (ownership charts, beneficial owner statements, signature specimens) and coordinate directly with the bank to minimise delays.

Yes. The Euro (€) is Kosovo’s official currency. This eliminates exchange rate risk for European clients and simplifies invoicing for international businesses.

Yes. Kosovo banks provide IBAN accounts and participate in SEPA transfers, enabling low-cost Euro transfers across Europe. This is a significant advantage for businesses serving EU clients.

Bank account setup typically takes 1–2 weeks as part of the company formation process. Preparation of a complete and correctly formatted KYC pack is essential to avoid delays.

Yes. Once you have your KBRA certificate, TAK fiscal number, and bank account, your company can issue invoices and receive payments immediately. If VAT-registered, your invoices must include your VAT number and comply with Kosovo’s invoicing requirements.

We work with international entrepreneurs forming Kosovo companies, local SMEs needing contract and corporate support, foreign investors acquiring Kosovo businesses, multinational companies establishing Kosovo subsidiaries or branch offices, and SaaS/IT companies needing DPAs and licensing agreements.

We can review contracts for Kosovo law compliance and practical enforceability in Kosovo. For contracts governed by foreign law, we coordinate with lawyers in the relevant jurisdiction when needed. We regularly work alongside UK, German, and US lawyers on cross-border transactions.

Standard commercial contracts are typically completed within 3–5 business days. Complex agreements or multi-party transactions may take longer depending on the number of parties and negotiation rounds involved. Urgent matters can be accommodated with prior arrangement.

No. EUIPO registrations do not extend to Kosovo. You must file nationally through the Kosovo Industrial Property Agency (KIPA) or through an authorised representative.

Yes, but non-residents must use an authorised representative. Art Mikullovci acts as the authorised representative for international clients filing trademark and IP applications in Kosovo.

Yes. If a contract dispute or corporate disagreement cannot be resolved through negotiation, we represent clients before Kosovo’s Commercial Court. We also handle alternative dispute resolution including mediation and arbitration.

No. Citizens of visa-exempt countries can enter Kosovo visa-free and apply for residence in-country if they plan to stay more than 90 days. Non-visa-exempt nationals must obtain Visa D at a Kosovo embassy before travelling.

No. Kosovo does not currently have a dedicated investor visa programme. Entrepreneurs use the company-based self-employment route under the Law on Foreigners, which provides residence based on business ownership.

Typically up to one year, renewable annually while the business purpose continues. Long-term residence may be available after several years of continuous legal residence in Kosovo.

Processing times typically range from 15 to 45 days from the date of filing with the Ministry of Internal Affairs, depending on the category, complexity, and current workload.

Yes. Family reunification permits are available for spouses, children, and dependent family members. The sponsor must demonstrate adequate financial means and accommodation in Kosovo.

It is recommended to have your company registered and your KBRA certificate issued before applying for residence. This provides the strongest documentation basis. We can form your company remotely first and then assist with the residence application.

No. To legally employ someone in Kosovo, you need a registered Kosovo entity (typically an LLC). The entity serves as the legal employer and handles payroll, tax, and pension obligations.

The minimum wage is set by government regulation and updated periodically. We recommend verifying the current rate at the time of hiring, as it is subject to annual review.

A minimum of 20 working days per year, plus Kosovo’s official public holidays. Additional leave may be agreed in the employment contract.

Kosovo does not currently have a mandatory employer-provided health insurance system, though one is in development. Many employers offer private health insurance as a benefit to attract talent.

Yes. With a power of attorney, the entire closure process can be managed on your behalf without you needing to be present in Kosovo.

The company remains on the KBRA register, and you remain liable for annual filings and any tax obligations that accrue. Eventually, KBRA may initiate administrative deregistration, but this can take years and does not resolve outstanding tax liabilities.