Why Kosovo

Kosovo is a small, euro-using country in the heart of Europe with a growing IT sector and a young workforce. Here is what draws international companies.

1. A fast-growing IT sector

ICT service exports reached €284 million in 2023, up more than 375% in ten years. About 1,950 ICT companies operate in Kosovo, and over 85% of them export, mainly to the EU and the US.

2. Salaries far below Swiss and German levels

Average gross pay in Kosovo is more than 80% lower than in Switzerland and Germany, across all sectors. Your budget goes much further, and the euro keeps payroll simple.

3. Simple, low taxes

Corporate income tax is a flat 10%.

4. The euro

Kosovo uses the euro, which makes pricing, payroll and invoicing simple for euro-zone companies.

5. Close to Europe

Kosovo shares the Central European time zone, so your team works the same hours as your head office. Kosovo passport holders have travelled visa-free in the Schengen area since January 2024.

6. Trade links with the EU

An EU Stabilisation and Association Agreement, in force since 2016, sets a free-trade framework with the EU. Kosovo is also a member of CEFTA, the regional free-trade agreement.

7. A growing economy

The economy grew about 3.6% to 3.9% in 2025, near its roughly 4% long-term potential according to the World Bank. Net foreign direct investment was €850 million in 2024, and Kosovo received its first sovereign credit rating (BB-) in 2024.

8. Strong ties with Switzerland

Around 160,000 people of Kosovo origin live in Switzerland, according to the Swiss government, which also notes that Kosovo has become a nearshoring location for Swiss firms. Many of these ties are personal as well as professional, which makes it easier to build trust and teams.

Working hours across continents

Kosovo is on Central European Time, the same as Switzerland. When it is 3 pm in Kosovo, it is usually:

3 pmZurich

9 amNew York

6 amLos Angeles

Times differ by one hour for a few weeks a year, when the US and Europe change their clocks on different dates.

Talk to us about your plans

Sources: Emerging Europe, Government of Kosovo, Kosovo Chamber of Commerce, Destatis, Swiss Federal Statistical Office,KIESA, EIG Law, European Commission, World Bank, US Commercial Service, Swiss FDFA.

General information only, not legal, tax or investment advice. Figures are the latest we found and may change.