1. Central location
   in the region

Being located in the heart of the
Balkans, Kosovo’s capital Prishtina is
in one hour driving distance to any
neighbouring country. Ongoing infrastructure
projects include modern
highway connections to Albania,
Serbia and Macedonia. By the end of
2009 the driving distance to the Albanian
Port of Durres will be reduced to
3 hours. In addition, Prishtina International
Airport offers air connections
to main European capitals.

2. Young, educated,multilingual and dynamic population

Kosovo has the youngest population
in Europe. Due to the long international
presence, English is just short
of an official language. App. 40.000
students at the state and numerous
private universities and many
Kosovars who have lived and studied
abroad are currently guarantying a
sufficient stream of highly educated
labour.

3. Competitive, flexible and well skilled labour force

Average gross wage in Kosovo is less
than 250 EUR. Wages in Kosovo are
unburdened by costly social contributions,
unlike those in the countries
of the region. Through engaging in
smaller workshops and private businesses
during the 1990s and through
vocational training programs established
in the last 10 years, Kosovars
have gained skills, which are highly
appreciated by foreign investors.

4. Modern Telecommunications

Kosovo offers modern telecommunication systems. There are 3 fixed
telephony operators and 2 mobile
telephony operators, offering the lat.
est and most modern technologies,
including VoIP, GPRS, etc. Three main
internet service providers offer stable
and broadband Internet, including
DSL, Wireless, and Cable, with lower prices than in any other European Country.

5. Modern, 5EU-compatible legislation

Since 1999 Kosovo’s legal system has
been re-built and is now completely
compatible with the EU legislation.
Kosovo has also installed the Internaing.
In addition, Kosovo’s legislation offers “national treatment” for foreign investors.
The legislation in Kosovo is also available in English.

6. Sound banking system

Kosovo’s financial sector has been built on completely new foundations. The
Central Bank of the Republic of Kosovo is an independent
body, which regulates and supervises the Kosovo financial market. There are
eight licensed banks, two pension funds, 19 other financial intermediaries,
27 financial auxiliaries and ten insurance companies in Kosovo. Six out of
eight banks in Kosovo are foreign-owned.

7. Currency: EURO

Euro is the official currency in Kosovo,
eliminating this way the currency
and exchange rate risk. The Euro gave
Kosovo a considerable advantage
over its competitors in the region by
making it more attractive to foreign
investment and by bringing financial
and macroeconomic stability. It also
enabled Kosovo to offer the lowest
transaction costs in the region.

8. Free access to EU-market, US-market and CEFTA members market

Kosovo derives three major benefits
from the trade liberalisation, namely
improved export possibilities, a better
investment environment and stable
relations with its neighbours. Kosovo
is a member of CEFTA and it also benefits
from non-reciprocal, customs-
free access to the EU market based on
the EU Autonomous Trade Preference
(ATP) Regime. Kosovo
also enjoys a free acess to
the US-market.

9. Great investment opportunities

Kosovo is well endowed with natural resources and agricultural land.
Sectors of agriculture, food processing, construction, textile,
IT, automotive components and energy and mining offer the most
opportunities for foreign investors.
An interesting opportunity, having in mind the young, multilingual and
educated population, is also IT-outsourcing.

10. Low tax burden and modern business support institutions.
Kosovo has a simple and straightforward tax system.
The tax burden is very low:

No other country of the SEE can
outperform Kosovo in its ability to
allow the businesses to enter the
market. The Investment Promotion
Agency of Kosovo (IPAK) and its office
in Vienna offer a whole range of free-
of-charge services for foreign investors.

• Personal Income Tax 0-10 %
• VAT 16 %
• Corporate Income Tax 10%
• Mandatory contributions for
  employees only 5% of gross salaries