Law on Foreign Investment
Foreign investment in Kosovo is regulated by Law No. 04/L-220 on Foreign Investment. The law ensures the principle of non-discrimination, treating foreign investors fairly and equally relative to domestic businesses.
Foreign Investors’ Rights
- Fair and Equal Treatment: Strict prohibition of discrimination based on citizenship or origin.
- Protection against Retroactivity: No law can be applied retroactively to the detriment of a foreign investor.
- Compensation: Investors are entitled to compensation for losses due to changes in laws, acts beyond authority by public bodies, or expropriation (which is strictly limited to special public interest).
- Repatriation of Profits: Investors have the right to freely transfer funds related to their investments.
- Right to Employ Foreign Personnel: Freedom to hire expatriate staff for management and technical roles.
Dispute Resolution
Investors can resolve disputes through agreed procedures or via:
- Commercial Court: A specialized “Division for Foreign Investors’ Disputes” ensures priority handling and expertise.
- Arbitration: The law grants automatic consent from the state for foreign investors to initiate arbitration (ICSID, UNCITRAL, ICC rules) without a specific prior agreement.
Trade Agreements
Kosovo is a party to the CEFTA (Central European Free Trade Agreement) and has signed a Stabilization and Association Agreement (SAA) with the EU, aiming to establish a free trade area and align with EU standards.