NGO Registration in Kosovo

Kosovo has an active and growing civil society sector. Whether you are establishing a professional association, an advocacy group, a charitable foundation, or a service organisation, the registration process requires a compliant statute, proper governance structure, and correct filing with the Department for Registration and Liaison with NGOs.

At AM Legal Services, I handle NGO registration for both local founders and international organisations establishing a Kosovo presence. I draft your founding documents, prepare the statute, and manage the registration process through to certificate issuance.

Need a for-profit entity instead? If your organisation has commercial objectives, a Kosovo LLC with 10% corporate tax may be more appropriate. I advise on the right structure during the initial consultation.

Kosovo's NGO sector is governed by:

• Law No. 06/L-043 on Freedom of Association in NGOs (in force since 2019, as subsequently amended)
• Administrative Instruction 12/2022: procedural guidelines for registration
• Regulation (MPB) No. 01/2024: registration and operation of NGOs

The law provides for three forms of non-governmental organisation: associations, foundations, and institutes. Associations and foundations are the two most common, and are compared below.

An association is a membership-based organisation with elected governance.

• Minimum founders: 3 (natural or legal persons, domestic or foreign)
• Structure: Members elect the governing bodies and participate in decision-making through general assemblies
• Best for: Professional bodies, advocacy groups, clubs, service organisations, and any organisation that requires member participation and voting

A foundation is a non-membership entity that manages assets for a specific purpose.

• Minimum founders: 1 or more (natural or legal persons)
• Structure: Governed by a board rather than a membership assembly
• Initial requirement: An endowment or property contribution (commonly €1,000 minimum)
• Best for: Scholarship programmes, cultural initiatives, grant-making bodies, social service funds, and any organisation focused on managing assets for a defined purpose

Organisations that serve the public interest may apply for Public-Benefit Status (PBS), which provides access to specific tax advantages and enhanced credibility.

PBS is available to organisations working in education, health, social services, culture, environmental protection, and other areas of public interest.

• Application is submitted to the responsible government department for NGOs
• The application is evaluated against the public-benefit criteria in the NGO Law, and a written decision is issued
• PBS must be maintained through ongoing compliance with reporting and activity requirements

• Income used for public-benefit purposes is exempt from corporate income tax
• Enhanced eligibility for government grants and international donor funding
• Greater credibility with donors and partners

• Standard rate: 10% (same as for-profit companies)
• Exemption: Income used for the organisation's public-benefit purposes is exempt from CIT
• Individual donors may deduct up to 10% of taxable income for qualifying contributions to PBS organisations

• NGOs are not automatically exempt from VAT
• Public-interest activities in education, health, social services, and culture have specific exemptions
• Grant and donation income typically falls outside the scope of VAT
• The standard €30,000 threshold applies for general VAT registration
• If your NGO conducts commercial activities alongside its non-profit mission, VAT may apply to the commercial component

• Standard employment rules apply to NGO employees
• Mandatory pension contributions: 5% employee + 5% employer
• Monthly withholding and payroll reporting to TAK

• NGO-owned property used for nonprofit activities is exempt from immovable property tax
• Property used for commercial purposes is taxed at standard rates

Registered NGOs must maintain ongoing compliance with:

• Annual reporting: financial statements and activity reports filed with the registration department
• Governance requirements: holding required meetings, maintaining records of decisions
• PBS reporting: organisations with Public-Benefit Status have additional reporting obligations
• Tax filings: monthly payroll declarations (if employees), annual CIT returns, VAT returns (if registered)

Whether you are founding an association, a foundation, or applying for Public-Benefit Status, I handle the complete registration process.

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Or reach me directly at art@ruleandlaw.com or by phone at +383 49 296 134.