Incentives For Foreign Investors

  • Foreign investors are protected against nationalization, expropriation, requisition or measures having similar effects; such measures may take place only in the public interest in accordance with the applicable laws and regulations and against the payment of an appropriate compensation, i.e. compensation that is adequate, effective and prompt.
  • National treatment of foreign investors, i.e, foreign investors have the same rights and obligations as residents of B&H.
  • Foreign investors are entitled to open accounts in any commercial bank in domestic and/or any freely convertible currency on the territory of B&H.
  • Foreign investors are entitled to freely employ foreign nationals, subject to the labour and immigration laws in B&H.
  • Foreign investors are entitled to transfer abroad, freely and without delay, in convertible currency, proceeds resulting from their investment in B&H
  • Foreign investors may own real estate in B&H. Foreign investors enjoy the same property rights in respect to real estate as B&H legal entities.
  • The rights and benefits of foreign investors granted and obligations imposed by the Law on the Policy of Foreign Direct Investment (mentioned above) cannot be terminated or overruled by subsequent laws and regulations. Should a subsequent law or regulation be more favorable to foreign investors, the investor will have the right to choose the regime by which the investment will be regulated.
  • Full corporate income tax exemption for companies whose exports exceed 30% of total income (turnover)
  • Companies investing not less than  20 million BAM over five consecutive years in production, provided the investment during the first year is at least  4 million BAM .
  • A company, whose workforce is comprised more than 50% of persons with disabilities or special needs hired for a period longer than one year, is exempt from corporate income tax for that year.
  • Foreign investors concerned about risks of transfer restrictions, expropriation, war and civil disturbances and denial of justice, can be insured against these risks with the European Union Investment Guarantee Trust Fund for Bosnia and Herzegovina, administered by the Multilateral Investment Guarantee Agency (MIGA, member of the World Bank Group).

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