CurrencyKosovo’s close relationship with the <strong>European</strong> Unionis also borne out by their currency which is the Euro.<strong>The</strong> country switched to this from the German markafter that country also adopted the Euro. Beyond thesymbolism of the country and the government usingthe Euro as their main currency, the adoption hasadded practical benefits. Indeed, the use of the Euro,gives Kosovo’s infant economy a sense of stability anda strong currency.Education<strong>The</strong> poly-lingualismof Kosovo is not onlytestament to a diversityof cultures but alsoto the educationstandards of thecountry. With sucha young population,the government hasrecognised that thisis a crucial pillar fordevelopment. <strong>The</strong>reform process is well under way and Kosovo’s twopublic universities have over 30,000 students with afurther 10,000 at the various private universities andcolleges dotted around the country. At the primaryand secondary level, Kosovo has almost 1,200 schoolsserving approximately 420,000 students.Business EnvironmentThis may well help the country to attract more investors; however,it is certainly not the only incentive. <strong>The</strong> country has low taxesand a transparent tax system. Kosovo has also been working hardto harmonise and bring into line its laws with those of <strong>European</strong>countries and the <strong>European</strong> Union. <strong>The</strong> country has a transparentand open investment climate with the Investment Promotion Agencyof Kosovo (IPAK) working hard to attract more foreign directinvestment (FDI). IPAK offers a number of free services includinginformation on investment opportunities in Kosovo, information onthe business and legal environment, market analysis, assistance withlocal authorities and after-care-services.<strong>The</strong> country’s VAT stands at 15% with a reduced rate of 0% for agriculturalinputs. Exporters also receive a full VAT rebate. For import taxes, the tariff stands at 10% with an exemptionfor certain capital and intermediary goods. Income tax is in the range of 0-20%. <strong>The</strong>se figures compare extremelywell with the region and mark Kosovo out as the least taxed country in South Eastern Europe.Business procedures and the investment regime are also simple. On average, business registration is completedwithin 3 days. Moreover, the investment regime is the same for both Kosovo’s citizens and foreign investorsincluding national treatment, guarantees for unrestricted use of income, protection against expropriations andthe outlawing of discrimination. However, the country is not resting on its laurels with the government and UNMIKconstantly refining and monitoring investment procedures.<strong>The</strong> practical business environment is comparable to that of the rest of the Western world. Working hours forbusinesses and shops tend to be from 9am to 5 or 6pm. For business meetings and offices, a suit is usually worn.Combined with its strategic position and youthful population, Kosovo’s business environment provides an attractiveproposition for foreign investors. Indeed, beyond the economy, the country has a lot to offer visitors and long termguests. From its rich historical and cultural legacy to the country’s natural beauty, Kosovo is a unique proposition.While independence was gained less than a year ago, the country has been working a lot longer to take its place asa key player in Europe’s future. While many <strong>European</strong>s may still have a hazy knowledge of the country, it is clearthat this will change sooner rather than later.10
• Increasing Competition and Efficiency, the Privatisation Process Is Going into Overdrive• On the Road to the Union, Kosovo Has Already Made Big Strides• Improved Stability and Measured Growth Point to a Maturing EconomyBusiness & InvestmentOpportunities11
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