Investor Presentaiton

Opportunities to Foreign Investment in Kosovo 3. CHAPTER THREE - Kosovo as an investment environment In this chapter will be discussed about main sectors that offer good investment opportunities; incentives regime; World Bank Doing Business Report 2010&2011; tax structure, infrastructure and trade regime. Kosovo's business environment provides several comparative advantages that are important for a flourishing private sector as well as for attracting FDI in the tradable sectors. For example, the tax system is simple and has low rates, and labor market rigidities are also very low, while at the same time wages are much lower than the region. These advantages, as compared to the region, are very important for attracting foreign investors. Top ten reasons to invest in Kosovo according to Investment Promotion Agency are: 1. Youngest population in Europe - With an average age of 25 years, Kosovo has the youngest population in Europe. Albanian and Serbian are the official languages; English and German are widely used. 2. High availability of skilled and cost effective labor - The average monthly cost of labor in Kosovo is slightly over €250. Wages in Kosovo are unburdened by costly social contributions, unlike those in the countries of the region. 3. EURO as the official currency - Euro is the official currency in Kosovo, thereby eliminating currency and exchange rate risks. 4. Free access to markets of EU, US and CEFTA – Kosovo derives three major - benefits from trade liberalization, namely improved export possibilities, a better investment environment and stable relations with its neighbors. 5. Low taxes - Kosovo has a simple and straightforward tax system. International Accounting Standards apply. The tax burden is very low: • Personal Income Tax 0-10% • VAT 16% • Corporate Income Tax 10 % • Mandatory contributions for employees only 5% of gross salaries 20 20

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