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allowed to export goods and services without charging VAT to foreign buyers. Additionally, they can claim credit for taxes on inputs by offsetting these taxes against their gross VAT liabilities or requesting a refund. While the government has the option to issue guarantees or co-finance FDI projects, it has yet to do so. Kosovo does not currently have legislation offering incentives for businesses owned by underrepresented investors.
Kosovo has established the legal framework for the creation of economic zones, but their operation has not been successful. In November 2023, the Ministry of Industry, Entrepreneurship and Trade (MIET) adopted a new Law on Industrial and Technological Parks, replacing the previous Law on Economic Zones. This law aims to centralise management by economic operators, reducing bureaucracy and improving management for both foreign and local investors. Kosovo has allocated €33mn in capital investments for the years 2024-2026 for the development of industrial and technological parks.
5.5.4 Major Sectors & Companies
Kosovo's economy is based on three main sectors, with the GDP composition as follows: services (59%), industry (27%) and agriculture (14%).
The industrial sector in Kosovo is primarily focused on metals, agriculture and food, transport equipment, furniture and wood products, as well as beverages and spirits.
Mining has historically been a key contributor to Kosovo’s economy, but its importance has diminished due to insufficient investment in equipment, facilities, and the development of new mines. Despite the sector’s considerable potential for foreign investment, with the Independent Commission of Mines and Minerals (ICMM) issuing over 500 exploration and mining licenses since 2007, the processing of licenses has slowed in the past two years.
Trepça is Europe's largest lead-zinc and silver ore mine. However, due to the closure of many mines and factories in the late 1980s and 1990s, the Trepça mining complex in Kosovo has significantly shrunk, leaving only a few local mines and processing plants operational.
Kosovo’s telecommunications operators have upgraded to 3G and 4G services, and the government is actively working to establish the country as a regional hub for IT products and services. The number of IT companies specialising in outsourcing for European and US firms is increasing, along with a growing number of inbound and outbound call centers, according to the International Trade Organisation.
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