Exporting advice
Growing economy
Kosovo has a population of 1.8 million, over 50% of whom are under 25 years old. Kosovo is an upper–middle income country, and has experienced robust economic growth since independence in 2008, largely outperforming neighbours in the region. This is principally driven by large-scale diaspora tourism, remittances and inward investment.
Trade agreement
Kosovo was the first country in the region to sign a post-EU-exit Partnership, Trade and Cooperation Agreement with the UK in 2019. This secured continued preferential trade access between the UK and Kosovo. Kosovo also implemented trade or preference agreements with the EU, US, its Balkan neighbours, Turkey, Norway, and Japan.
Top five UK goods exported to Kosovo , in the four quarters to the end of Q3 2023
| Goods | Value (£ million ) |
|---|---|
| Meat & meat preparations | |
| Other manufactures (consumer) | |
| Medicinal & pharmaceutical products | |
| Miscellaneous foods | |
| General industrial machinery (intermediate) |
Source:
ONS Trade in goods: country-by-commodity exports
Last updated: February 2024
Download the latest trade and investment factsheet for Kosovo.
Total import value (into the UK from Kosovo) and export value (from the UK into Kosovo) over time
| Year | Imports (£ million ) | Exports (£ million ) | Total trade (£ million ) |
|---|---|---|---|
| 2016 | 0.0 | 4.0 | 4.0 |
| 2017 | 0.0 | 2.0 | 2.0 |
| 2018 | 0.0 | 8.0 | 8.0 |
| 2019 | 0.0 | 8.0 | 8.0 |
| 2020 | 4.0 | 10.0 | 14.0 |
| 2021 | 0.0 | 13.0 | 13.0 |
| 2022 | 2.0 | 11.0 | 13.0 |
Source:
ONS UK total trade: all countries, seasonally adjusted
Last updated: January 2024
Total trade is the sum of all exports and imports over the same time period.
Download the latest trade and investment factsheet for Kosovo.
Kosovo: at a glance
Currency
Euro
Official languages
Albanian, Serbian
Population
1.8 million
World Bank, 2022
Time zone
GMT+1
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Opportunities for exporters
There are opportunities for UK companies across a broad range of industries in Kosovo, from professional services, to travel infrastructure and mining.
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There is significant potential for growth in professional services in Kosovo, with the sector currently dominated by customer support companies supporting a range of businesses based in other countries. Beyond this, the growth of Kosovan businesses means demand for professional services in Kosovo is expected to grow.
Ease of doing business
Kosovo’s geographical proximity to the UK, +1 hour time difference and widespread use of English offer good conditions for businesses seeking to outsource their operations overseas.
Skilled workforce
The workforce is young and education standards are rising, but wages remain very competitive compared to the rest of Europe. Software development, telemarketing, accounting and finance, and business management are all popular degree courses in Kosovo.
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With significant support from international partners, Kosovo has made remarkable progress developing public infrastructure over the last decade. Kosovo has ambitious infrastructure plans for improving road, rail and air connections, offering a variety of opportunities for UK firms.
Road infrastructure programmes
Kosovo has initiated the construction of a Kosovo – Serbia motorway and has plans to upgrade major roads around the country. Kosovo’s capital, Pristina, is periodically expanding its network of electric and hybrid buses. In addition, the government has approved a renewables-focused strategy placing greater emphasis on electric vehicles and public transport.
Developing rail projects
Kosovo lacks a modern rail network, and has over 300km of rail that either needs refurbishing or complete renovation. This offers many opportunities for UK rail companies. In particular, Kosovo and Albania are working together to build a railway connecting a planned dry port in Pristina with the commercial port in Durres.
Modern international airport
Kosovo hosts the newest airport in the Western Balkans region. Unveiled in 2014, it welcomes approximately two million passengers per year. The government has unveiled plans to expand and build another terminal to meet increasing demand for flights.
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Kosovo has a long mining tradition and significant natural resources. Opportunities for continued partnership and mutual growth include possible ownership and expansion of new or existing mines likely through a public-private partnerships, as well as the sale and maintenance of equipment or spare parts, and global export opportunities.
Vast mineral and metal reserves
Kosovo has large reserves of lignite, lead, zinc, silver, nickel, cobalt, copper, iron, and bauxite, and high-quality construction minerals such as andesite, basalt, diabase, gabbro, granite, limestone, and marble. It is strategically located in the Tethyan Belt.
Opportunities to modernise the sector
There is significant unrealised potential in the Kosovan mining sector. The government has approved the Law on Sustainable Investment and mining is one of the priority sectors where the government is likely to offer strategic investment status to international investors. Some of the benefits that investors would gain are priority access to industrial parks and tailored support from the government.
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Kosovo has experienced rapid growth in ICT services ranging from software development, to database management and cloud infrastructure. Kosovo has scored highly in the Emerging Europe report on ICT competitiveness, with priorities that include digital transformation of public services and improved cyber security.
Country-wide internet access
At 96.6%, Kosovo’s internet penetration stands among the highest in the region and offers high-speed internet to all areas in the country, providing a strong basis for digitalisation of services.
Cyber Security
Kosovo has an ambitious National Cyber Security Strategy 2023-2027 and has started to build cybersecurity capacity across the public sector to reform its digital landscape. This creates opportunities in both cyber infrastructure and capacity building services.
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Kosovo’s energy sector is currently dominated by old lignite-based power plants, but the government’s Energy Strategy signals a shift towards renewables. Kosovo has already built several on-shore windfarms and has plans to develop 1.2GW of solar and wind capacities by 2031.
International funding
International donors and multilaterals are helping finance Kosovo’s green transition (including an IMF Resilience and Stability Facility) offering opportunities for developers to support the expansion of Kosovo’s renewables sector. Kosovo is currently prioritising solar power capacity but will also look to expand on-shore wind capacity.
Facilitation of financing (UKEF)
UK Export Finance (UKEF) is active in a wide range of sectors and is able to look at both small and big-ticket transactions. As per UKEF’s mandate to promote British exports, UKEF support can be sought by a sovereign or corporate buyer/borrower for contracts delivering a minimum 20% UK content.
Check for trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.
Check duties and customs
Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.
Doing business in Kosovo
Establishing a business
The Business Registration Agency in Kosovo (ARBK) is responsible for the registration of new businesses.
There are two business chambers that assist UK businesses in Kosovo: The British Chamber of Commerce in Kosovo (BCCK), and the British Kosovo Chamber of Commerce (BKCC). In addition, it can also be beneficial to find a sales agent, representative or distributor to help make contacts and navigate the complex regulatory environment. Explore our list of qualified legal experts.
Tax
VAT is set according to the cost, insurance, and freight of goods. Certain products are also subject to an additional excise tax. These include:
- petroleum
- tobacco
- vehicles
- alcohol
The excise tax is applied as a pre-determined amount, the value of which depends on the item.
The UK and Kosovo signed a Double Taxation Convention in 2015.
Standard Value Added Tax (VAT)
The VAT rate is 18%. A reduced rate of 8% applies to certain products such as food and drink items and educational materials.
Corporate Income Tax (CIT)
The CIT rate for annual turnover over €30,000 is 10%.
Personal Income Tax (PIT)
The PIT rates are progressive up to 10%.
Import duties
Operating in Kosovo
To improve the ease of operating a business, Kosovo has implemented simplified business registration procedures and a legal framework which has strengthened the rights of creditors and debtors.
Intellectual property
Speak to an intellectual property lawyer if you think you need patent protection when exporting. Kosovo Industrial Property Agency is an administrative central body of the Ministry of Industry, Entrepreneurship and Trade which is responsible for legal protection of innovation, trademark, and industrial designs.
Payment terms
The preferred payment terms in Kosovo are documentary collections and letters of credit. The safest method of payment is through wire transfers from/to local banks.
Business Customs
Kosovo generally follows modern working practices. The working week is Monday to Friday, and most public institutions work from 8:00 to 16:00, with similar schedules in the private sector. Shops tends to open seven days a week.
Communication and culture
English is widely spoken and well understood, and many people also speak German. Albanian is the main language used by approximately 93% of the population, while Serbian is also an official language, and is spoken by Kosovo-Serbs and Kosovo-Albanians over the age of 45. Communications with public institutions tend to be in Albanian or English.
Kosovans are friendly and welcoming to foreigners, and feel particular affection for the UK due to the NATO intervention in 1999 which ended the war, as well as the UK’s support for Kosovo’s state-building. Meetings in cafes and restaurants are common.
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