Kosovo observes a legal system largely derived from the continental civil law tradition. The main sources of law consist of the Constitution at the top of the legal hierarchy, followed by codes, laws and international conventions incorporated as part of the internal legal system via ratification in the Assembly of Kosovo.

The judicial system is established in the Constitution as well as Law No 06/L-054 on Courts and its subsequent amendments. The court system consists of seven basic courts, the court of appeal and the Supreme Court, as well as the Commercial Court and the Administrative Court, which have jurisdiction over economic and administrative disputes. Finally, the Constitutional Court operates independently and handles all cases that involve the interpretation or conformity of laws with the Constitution.

Foreign investors and investments in Kosovo are afforded the same legal rights and obligations as domestic investors, pursuant to Law No 08/L-209 on Sustainable Investments. As such, no general governmental approval is required solely on the basis that an investment is made by a foreign investor. However, specific approval requirements may apply in relation to strategic investments and investments that may affect public order or national security.

An investor can apply for strategic investment status in order to benefit from priority treatment, economic facilitations and specialised state support. This status is given to investors aiming to invest in the following priority sectors:

• manufacturing and processing;
• agriculture;
• information and communication technology;
• education and training, research and innovation;
• health;
• tourism;
• sewage and waste administration;
• transport;
• energy; and
• mines.

An investment must reach a minimum value of EUR10 million to be eligible for designation as a strategic investment.

A strategic investment can be subject to “additional verification” screening if it is likely to affect public order or state security. The screening is particularly relevant for investments involving the following sectors:

• critical infrastructure;
• critical technology and dual-use goods under applicable legislation;
• supply of critical goods, including energy, raw materials and food;
• access to or control over sensitive information; and
• media freedom and pluralism.

Additional approvals may be required where a strategic investment involves the use of public immovable property. Depending on the ownership of the relevant property, approval may be required from the Assembly of Kosovo, the relevant municipal assembly or the competent public enterprise. Public immovable property may be made available for strategic investment projects for up to 99 years.

Since there is no general pre-approval requirement that applies to foreign investments at large, there are also no statutory sanctions if investment proceeds without approval. Foreign investors must obtain specific approvals to gain strategic investment status, or if their investment is subject to screening for public order and security reasons.

There are no direct consequences of investing without approval, but if the investment is subject to screening and is found to affect public order or state security, and does not meet authorisation requirements, the Investment Council may prohibit or order the removal of the investment. Alternatively, the Council may issue a decision that sets specific conditions and deadlines to mitigate the threats posed by the investment. The Council may also cancel the decision for a strategic investment ex-post if the investor provided incorrect data or concealed information that influenced the initial approval.

There is no general statutory requirement providing that conditions or commitments automatically apply to all foreign investments in Kosovo. Most foreign investments are not subject to negotiated obligations unless the investment falls within specific regulated categories. If an investment is granted strategic investment status, approval generally requires an implementation arrangement between the investor and the government, which includes the specific commitments of the investor for the project, the defined timelines for its execution and mechanisms for protection of the interests of the Republic of Kosovo in case the deadlines are not met or the project is abandoned. However, the particulars of these commitments would be subject to negotiations between the government and the specific investor.

For investments undergoing additional verification for security reasons, the Investment Council can issue a decision that sets specific conditions and deadlines to mitigate threats to public order or state security. If an investor fails to demonstrate compliance with these conditions, the Council may issue sanctions as described in 2.2 Procedure to Obtain Approval and Sanctions for Non-Compliance.

A lawsuit for an administrative conflict is allowed against certain decisions, namely Council decisions (including refusals), cancelling or repeal investment status, or screening decisions. The recently established Administrative Court has jurisdiction over these matters.

In Kosovo, the most common corporate vehicles for business registration are limited liability companies (LLCs) and joint stock companies (JSCs). The Law on Business Organizations also recognises several other forms, though they are generally less common for larger corporate structures:

• individual business – the owner has unlimited liability for all debts;
• general partnership – all partners have unlimited liability; and
• limited partnership – consists of at least one general partner (unlimited liability) and at least one limited partner.

Limited Liability Companies

The LLC is the most common form of business organisation in Kosovo and is generally preferred for private ownership and subsidiary operations. The LLC is a distinct legal person, separate from its shareholders, and is itself liable for its own debts and obligations. There is no minimum capital requirement for an LLC in Kosovo.

The LLC must have at least one managing director. Establishing a board of directors is optional and must be explicitly mentioned in the charter if desired. Within the company structure, the shareholder assembly holds the most power and decision-making authority.

Joint Stock Companies

JSCs are typically recommended for businesses with multiple shareholders or those intending to trade shares publicly. Shareholders have limited liability, with their ownership interest represented by shares. The minimum capital requirement for a JSC is EUR10,000. A JSC must have a board of directors and must have at least one shareholder at incorporation.

Branch of Foreign Organisations

In some cases, it is also appropriate to establish a branch. Unlike LLCs or JSCs, a branch is not a separate legal entity but is considered an extension of the parent company located outside Kosovo. The parent organisation assumes unlimited liability for all the rights and obligations of the branch in Kosovo.

Businesses in Kosovo have to be registered with the Kosovo Business Registration Agency (KRBA).

Incorporation of Limited Liability Companies

The authorised representative must submit the following to register an LLC:

• the KRBA registration form, with relevant information provided for shareholders and directors;
• the company charter, which should specify, among other requirements, the company name, address, business activity, corporate governance structure, decision-making procedures and, where applicable, share classes and voting rights;
• the memorandum of incorporation, which should detail who the founders are, share allocation, payment terms, contributions (in cash and in kind), management structure and incorporation costs – if there is only one founder, an act of establishment is filed instead of the memorandum; and
• a copy of the personal identification document of the authorised representative.

Incorporation of Joint Stock Companies

The authorised representative must submit the following to register a JSC.

• The KRBA registration form.
• The company charter, which should specify the company’s name, address, business activity, management structure and detailed rules on share capital. This includes any applicable rules regarding common and preferred shares, their rights, issuance limits and non-monetary contributions. The charter must also comply with gender representation quotas requiring minimum female participation on the board of directors.
• The memorandum of incorporation, with requirements similar to those applicable to LLCs.
• A copy of the personal identification document of the authorised representative.

Registration of Branches

Pursuant to Article 35, a branch of a foreign business organisation is not a separate legal entity and must submit the following for registration:

• the KRBA registration form;
• a registration certificate of the foreign business organisation from its home country (not older than three months);
• the decision to establish the branch of the foreign business organisation in Kosovo; and
• a copy of the personal identification document of the authorised representative.

According to the Law on Business Organizations, the KBRA must make an entry in the registry and publish the information no later than two working days after receiving the initial application. If an application fails to meet requirements, the KBRA notifies the applicant and sets a deadline of up to ten working days for corrections.

All business organisations are required to update their registered data and ensure permanent accuracy. If there is a change related to the business information, an amendment must be submitted to the KRBA within 15 days of the change.

An application for amendment must also be submitted to the KBRA in the event of the appointment, removal or change in the right of representation of a managing director or board member.

When shareholders wish to amend the charter of an LLC, the authorised representative must complete and submit the forms prepared by the KBRA. This filing must include a copy of the shareholder decision regarding the amendment and the full text of the amended charter. The amendment is considered to have entered into force only after registration and publication by the KBRA.

Ultimate Beneficial Ownership

Under Law No 08/L-265 on the Register of Beneficial Owner, all commercial companies are required to declare their beneficial owners in the Beneficial Ownership Register within 30 calendar days of incorporation. The Register is a centralised electronic database managed by the KRBA. Any subsequent change to beneficial ownership must also be reported and updated within 30 calendar days of the change occurring. Notwithstanding this, due to missing sub-legal acts, the Beneficial Ownership Register is not yet operational; hence, beneficial owners are not yet being declared.

Limited Liability Companies

LLCs are managed by at least one managing director and may optionally appoint of a board of directors if stipulated in the charter. In the absence of a board, the shareholder assembly is the highest decision-making body, holding the power to elect or remove managing directors charged with day-to-day operations and legal representation. If a board is established, the provisions governing the board of directors of a JSC apply.

Joint Stock Companies

Each JSC is required to have a board of directors responsible for managing and directing the company’s activities. The system is structured as a one-tier model, with board members appointed by the shareholders’ assembly. The board appoints at least one managing director to represent and manage the company. This managing director reports and functions under the direction of the board. The roles of chairperson of the board and managing director should be separate; the chairperson of the board of directors may not simultaneously serve as the managing director. In addition, no officer, manager or other employee of the JSC is permitted to serve as a director on the board.

In exercising their functions, managing directors, members of the board and officers are obliged to act with fairness, loyalty and full care in due account of the interests of the company and other partners or shareholders. As such, they are expected to protect company assets and confidential information, avoid exploiting corporate opportunities for personal gain, refrain from competing with the business and prevent personal interests from negatively impacting the company. If these persons act contrary to these duties, they are liable to compensate the company for damages and must repay any personal profit acquired through the infringement.

Employment relationships are governed by Law 03/L-212 on Labour, applicable to all employees and employers in the private and public sector in Kosovo, including foreign nationals working in Kosovo. Certain categories are excluded from its scope, namely:

• employment relationships within the context of international missions;
• diplomatic and consular missions of foreign states;
• international military presence in Kosovo under the Comprehensive Proposal for the Status Settlement; and
• international governmental organisations.

The Law on Labour forms the main framework regulating employment relationships, supplemented by individual employment agreements as well as collective contracts and the employer’s internal act where applicable. The employment agreement forms the legal basis for an employment relationship. Collective agreements and internal rules may grant employees more favourable rights and working conditions than those provided by law but they cannot go below the statutory minimum protections.

In addition, occupational safety and health is regulated separately under the Law on Safety and Health at Work, which establishes mandatory obligations for employers regarding workplace conditions and safety.

An employment contract must be concluded in written form and signed by both the employer and the employee. The agreement may be for an indefinite period, a fixed period or for specific tasks (not exceeding 120 days within a year).

The contract must include the following particulars:

• data on the employer, including designation, residence and business register number;
• data on the employee, including name, surname, qualification and dwelling;
• designation, nature and form of labour, and the job description;
• the place of work or a statement that work is performed at various locations;
• working hours and working schedule;
• the date of commencement of work;
• the duration of the employment contract;
• the basic salary and any other allowance or income;
• the vacation period; and
• provisions for the termination of the employment relationship.

If a trial period is included, it must be defined in the contract and cannot last more than six months.

Full-time working hours are 40 hours per week. For employees under 18 years of age, the maximum hours are 30 hours per week. For jobs involving hazardous impacts on health, working hours may be reduced, at most to 20 hours per week.

Employees are entitled to rest periods, including a daily rest of at least 12 continuous hours between two work days and a weekly rest of at least 24 continuous hours.

Overtime is permitted in extraordinary cases when workload is significant but is limited to a maximum of eight hours per week. Overtime allowance is to be calculated at 30% per hour of the basic salary. The employer may also decide to compensate overtime with days off if this mechanism is stipulated in the employment contract or internal act.

Specific restrictions on overtime include:

• employees working on reduced or part-time hours cannot work more than full-time hours;
• overtime work is not permitted for employees under 18 years of age;
• employers shall not extend working hours for pregnant employees, single parents with a child under three years old or parents with a child with disabilities; and
• pregnant women and mothers with children under three years of age cannot be obliged to work longer than full-time hours.

An employment relationship may be terminated in three ways.

• Mutual written agreement between the employer and employee.
• By operation of law, which applies, for instance, in the following circumstances:
1. expiry of a fixed-term contract;
2. death of the employee or the employer, with no successor;
3. the employee has reached retirement age;
4. a decision has been issued that verifies loss of working capacity;
5. a decision by a competent court; or
6. bankruptcy or liquidation of the employer.
• By unilateral termination initiated either by the employee or by the employer.

An employee may terminate the contract with a notice period of 15 days for fixed-term contracts and 30 days for indefinite-term contracts. No notice period is required if the employer has committed a serious breach of its obligations under the employment contract.

Unilateral termination by the employer is permitted if one of the following legal bases applies:

• the employee is no longer capable of performing their duties;
• the termination is necessary for economic (eg, loss of revenue, cost-reduction measures), technical (eg, automation of functions or replacement of certain tasks) or organisational (eg, changes to operational structure, elimination of certain functions) reasons ; or
• there has been serious misconduct or dissatisfactory performance of work duties.

For indefinite-term contracts, the notification periods are based on seniority:

• for six months to two years of service, the notice period is 30 days;
• for two to ten years of service, the notice period is 45 days; and
• for more than ten years of service, the notice period is 60 days.

For fixed-term contracts, the notice period is 30 days.

There are two cases in which the employer is permitted to terminate the contract without complying with the notice periods described in the foregoing: (i) the employee repeatedly commits less serious misconduct or breaches employment obligations, or (ii) the employee’s performance is unsatisfactory despite a previous written warning.

However, immediate dismissal in these cases is conditioned on the following:

• the employee has previously been issued a written description of the dissatisfactory conduct or performance;
• the employee has been provided a reasonable period within which they could have improved this situation; and
• the employee was provided a clear warning that failure to improve within that period could result in dismissal without further notice.

In any case, the employer must hold a meeting with the employee to explain the grounds before issuing a warning or terminating employment. In this meeting, the employee is entitled to be accompanied by someone of their choosing, and this right should be communicated to them beforehand, usually in the formal invitation.

The decision to terminate employment must be issued in writing and state the legal and factual grounds therefor. Additionally, the employer is obliged to pay all outstanding salary and other allowances up to the effective date of termination.

Collective Redundancies

A collective dismissal occurs when at least 10% of employees, but no fewer than 20%, are discharged within a six-month period for economic, technical or organisational reasons. If this threshold is not met, the termination of employment relationships is treated as unilateral termination for organisational reasons, per the rules described in the foregoing.

The employer must notify employees and trade unions in writing at least one month in advance, specifying the number of employees affected and measures taken to alleviate consequences. The employer must also notify the employment office in writing.

Employees with indefinite-term contracts are entitled to a single severance payment upon termination, the sum of which is relative to the years of service with the employer.

As mentioned in 4.4 Termination of Employment Contracts, when an employer holds a meeting to explain the termination of an employment contract or to issue a warning, the employee is entitled to be accompanied by a representative of his or her choice. Excluding this situation, there is no statutory requirement for employee representation in Kosovo.

Nevertheless, employees are guaranteed freedom of association and trade-union action without interference. Trade unions have the legal role of organising strikes for the protection of employee rights. If an employer plans a collective dismissal, they are required to notify the employees’ trade union in writing at least one month in advance (provided a union is active).

With regard to collective bargaining, employee organisations or their representatives are the necessary parties for concluding collective contracts at the state, branch and enterprise levels.

Pursuant to Law No 05/L -028 on Personal Income Tax, taxation applies to income generated from wages, salaries, bonuses and other forms of compensation. Taxes are primarily through a withholding at source system, where employers deduct income tax and pension contributions from employees’ gross salaries and remit them to authorities. Tax residents are taxed on all income, whereas non-residents are taxed only on income earned within Kosovo.

Taxable income from employment is calculated after deducting mandatory pension contributions. Both the employer and the employee are required to contribute 5% of the gross salary each to the pension fund, with optional additional contributions of up to 10%. These contributions are paid into the Kosovo Pension Savings Fund or licensed alternatives.

Following the deduction of pension contributions, personal income tax is applied on a progressive basis, as follows:

• 0% on annual income from EUR0 to EUR3,000; 
• 8% on annual income from EUR3,000 to EUR5,400; and
• 10% on annual income above EUR5,400.

For employees that receive income from a secondary employer, a flat rate of 10% applies to the secondary employment income.

Corporate taxation is primarily governed by Law No 06/L-105 on Corporate Income Tax, Law No 05/L-037 on Value Added Tax, Law No 05/L-028 on Personal Income Tax and Law 08/257 on Tax Administration and Procedures, supplemented by relevant administrative instructions issued by the Tax Administration of Kosovo (Administrata Tatimore e Kosovës – TAK).

Corporate Income Tax

Corporate income tax is set at a flat rate of 10% on taxable income.

VAT

Companies engaged in the supply of goods or services are generally subject to VAT. The standard VAT rate is 18%, while a reduced rate of 8% applies to certain goods and services, typically those considered essential. Certain activities of public interest are exempt from VAT, including other activities in financial and insurance services, such as loans granted by financial institutions, life insurance and reinsurance, amongst others.

VAT registration is mandatory once an entity’s annual taxable turnover exceeds EUR30,000, although voluntary registration is permitted below this threshold. VAT is also applied to imports of goods, whereas export of goods is exempted of VAT.

Withholding Tax

Withholding tax obligations apply to specific categories of cross-border and domestic payments, including interest, royalties, rent and certain service payments made to non-residents. Applicable rates are as follows:

• 10% for interest and royalties;
• 9% for rent; and
• 5% for qualifying services paid to non-resident entities.

Dividends are exempt from taxation in Kosovo.

Payroll Obligations

Employers are required to comply with payroll-related obligations, including the withholding personal income tax and pension contributions defined in 5.1 Taxes Applicable to Employees/Employers.

OECD Pillar Two

Pillar Two of the OECD’s Two Pillar Solution has not been implemented in Kosovo.

Dividend income received by resident and non-resident persons is exempt from taxation.

Strategic Investments

Investments that meet national objectives or fall within priority sectors benefit from additional facilitations, including simplified or preferential treatment for imports used in manufacturing or processing (such as machinery, raw materials, semi-products or other inputs), as well as exemption from export duties.

Temporary VAT Exemption on Raw Materials

As per the Law on Economic Recovery, raw materials that are produced from registered and active businesses in Kosovo, regardless of whether they are exported or internally traded, are exempt from chargeable VAT until 31 December 2028.

Tax Reduction for New Assets

A one-time 10% deduction applies for corporate income tax purposes for taxpayers that purchase and first put into use new heavy machinery classified under the 10% depreciation category. This deduction is not available if the taxpayer already benefits from other tax exemptions or incentives.

VAT Exemption for Certain Imports

Article 29 of Law No 05/L-037 on Value Added Tax provides that production lines, production machinery and raw materials used in the manufacturing process qualify for VAT-exempt import. The specific categories of machinery are not listed, and communication with TAK is required to ensure compliance.

Tax Credits

For the avoidance of double taxation, Kosovo residents who earn business income abroad and pay income tax to a foreign country are entitled to a tax credit in Kosovo for the amount paid. This credit acts as a deduction on their owed Kosovo income tax. The deduction cannot go over the amount of tax Kosovo would have originally charged on that specific foreign income.

Customs Duties Exemption

Manufacturers are granted exemption from customs duties on imports of raw materials, semi-finished goods, production machinery and IT equipment. This is limited to approval entities, as authorised by TAK, and is implemented through a unique customs declaration, which must include the manufacturer’s fiscal number. Kosovo Customs records relevant data in the automated system for customs data (ASYCUDA) and informs TAK for compliance.

Free Trade

Kosovo also applies free trade agreements (FTAs), which eliminate or reduce customs tariffs on certain goods traded with partner countries. For more information, please refer to 5.8 Tariffs.

Tax consolidation is not available in Kosovo

There are no applicable thin capitalisation rules in Kosovo.

Transfer pricing rules are set out in the Law on Corporate Income Tax and Administrative Instruction No 02/2017 on Transfer Pricing, and apply to all controlled transactions with related parties. Controlled transactions arise where there is a special relationship between the parties that could influence the terms and conditions of the transaction, making them potentially non-compliant with the arm’s length principle.

“Related parties” refers to the following situations:

• one party holds or controls 50% or more of the shares or voting rights in another entity;
• one party directly or indirectly controls another party;
• two parties share a common controlling third party; or
• parties are related individuals up to the third degree, as per the Law on Heritage of Kosovo.

The taxpayer has to ensure that their controlled transactions are conducted in accordance with the market standards. When requested by TAK, transfer pricing documentation must be submitted within 30 days.

Kosovo’s anti-tax evasion framework is primarily set out in Law No 08/L-257 on the Administration of Tax Procedures, which establishes the rights, obligations and enforcement powers of TAK. For instance, TAK may disregard transactions that lack “substantial economic effect” or re-characterise them if their form does not reflect their economic substance. This includes re-characterising elements of transactions entered into specifically as part of a scheme to avoid tax liability.

Transfer Pricing Adjustments

With respect to transfer pricing, when controlled transactions do not reflect the open market value, TAK may adjust taxable income and allocate revenues and expenses between related parties to reflect the outcome that would have arisen between independent entities.

Fictitious Invoices

TAK does not recognise expenses for income tax purposes or input credits for VAT purposes if they are based on fictitious transactions or invoices. A fictitious invoice is defined as one issued by an unregistered person or for a transaction/supply that did not take place.

Payment Restrictions

Since June of 2026, any transaction concluded between a business and a non-business individual is subject to mandatory electronic payment requirements, with cash payments being capped at EUR2,000.

Enforcement and Inspection

TAK officials have “full and free access” to any facility where economic activity occurs or where records are stored. These inspections may be carried out at any time, and/or with prior notice, for verifying compliance or recovering outstanding tax obligations. TAK may also conduct visits, without prior notice to the taxpayer, to confirm compliance with applicable tax laws, obtain information pertinent to subsequent audit activity and collect past due tax debts as considered necessary.

Kosovo’s tariff system is regulated by the Customs and Excise Code and is based on harmonised system (HS) of the World Customs Organization and the combined nomenclature (CN) of the EU.

Customs duties range from 0% to 10%. A standard 10% duty applies to imports from countries with which Kosovo does not currently have a preferential or free trade arrangement. Preferential tariff treatment applies under Kosovo’s FTAs and other applicable frameworks, including the Central European Free Trade Agreement (CEFTA), the Stabilisation and Association Agreement (SAA), the European Free Trade Association (EFTA) and preferential agreements with Turkey, the USA and the UK.

Goods originating from CEFTA members are generally not subject to any custom duty, nor are certain industrial, agricultural and fishery imports from the EU under the Stabilization and Association Agreement.

In addition to customs duties, Kosovo applies excise taxes on specific goods, primarily for public policy purposes. These taxes are calculated as fixed amounts per quantity and apply to products such as tobacco, alcoholic beverages and petroleum products.

M&A transactions are governed by Law No 08/L-056 on Protection of Competition (LPC). Under the LPC, concentrations have to be approved by the Competition Authority if defined thresholds are met. A concentration is defined as any “steady change of control of enterprises when independent enterprises join together or parts thereof; one or more enterprises acquire direct or indirect control over all or part of other enterprises, in particular by earning shares, by gaining the majority of voting rights and in other ways provided by the legislation in force”.

The following are exceptions and are not considered concentrations:

• transactions which constitute a temporary financial holding;
• transactions which refer to an internal restructuring;
• bankruptcy-related acquisitions; and
• joint ventures.

If there is a concentration that does not constitute one of these exceptions, it must be notified to the Competition Authority if either of the following conditions are met:

• the undertakings concerned have combined worldwide turnover exceeding EUR20 million and at least one undertaking has turnover exceeding EUR1 million in Kosovo; or
• at least two undertakings each have turnover exceeding EUR3 million in Kosovo.

In its turnover calculation, the undertakings should take into account the entire “group of associated enterprises”, excluding intra-group transactions for the preceding financial year. An associated enterprise is any entity over which a party exercises decisive influence through ownership, voting rights or management control.

When a concentration meets the defined thresholds and does not constitute any of the listed exemptions, it has to apply to the Competition Authority for approval.

The application is to be submitted by the enterprise that acquires control over the other, or all concentration participants by mutual agreement. It is generally to be submitted upon conclusion of the contract of the transaction or after the concentration is made public, but before the concentration is carried out.

The application for permitting the concentration should include, but is not limited to, the following:

• the contract or other legal document forming the basis for the transaction (original or certified copy);
• the annual financial report of the participants for the preceding financial year;
• information on the participants, including the names, registered addresses and relevant business activities;
• the shareholder structure before and after the concentration;
• a list of other enterprises in the same market where the parties hold 10% or more of the shares/voting rights, as well as any overlapping board of directors or supervisory board members;
• disclosures of any other foreign competition authorities currently reviewing (or that will review) the same concentration;
• total annual revenues for each participant (excluding VAT and taxes);
• identification of the relevant markets, the parties' market shares before and after the transaction, and an evaluation of their main competitors; and
• the legal and economic reasons for the concentration.

Upon receipt of the full application, the Authority initiates its concentration assessment and publishes a public announcement of the proposed transaction. At this stage, interested third parties may submit remarks regarding the concentration and its potential effects. The Authority has 30 days to determine whether the proposed concentration raises competition concerns. If no concerns are identified and no formal assessment procedure is initiated within that period, the concentration is considered permissible, and the parties may be issued a certificate confirming this.

If, during the initial assessment, the Authority suspects the transaction may significantly harm market competition, particularly through the creation of a dominant position in the market, it may launch a formal assessment of the transaction. During this review, the parties may propose corrective measures to address concerns, including proposed timelines. The Authority may approve the proposed remedies, modify them or impose its own conditions if necessary.

Within 60 days of the initiation of the assessment procedure, the Authority issues a final decision either prohibiting the concentration, approving it unconditionally or approving it subject to specified conditions. If the permit is conditional, the parties are required to comply with imposed conditions; otherwise, the approval decision may be revoked.

Article 5 of the LPC prohibits agreements, decisions and concerted practices between undertakings that are aimed at preventing, restricting or distorting competition in a relevant market. In particular, the following are considered anti-competitive:

• directly or indirectly fixing selling or purchasing prices or other trading conditions;
• restricting production, markets, technical development or investment output;
• market sharing/allocation;
• applying dissimilar conditions to equivalent transactions; and
• making the conclusion of contracts subject to supplementary obligations that have no connection to the object of the contract.

Notwithstanding the foregoing, certain agreements may be exempted under certain conditions where otherwise they would be considered anti-competitive. These exemptions are granted for agreements that contribute to improving the production or distribution of goods, or promote technical or economic progress, while allowing consumers a fair share of the resulting benefits. Additionally, these agreements must not impose unreasonable restrictions that go beyond what is necessary to achieve their objectives, nor may it eliminate competition in respect of a substantial part of the products or services concerned.

Block exemptions are also provided for certain categories of agreements, as follows:

• vertical agreements, particularly exclusive distribution agreements, selective distribution agreements, exclusive purchase and exclusivity agreements;
• horizontal agreements in research, development and specialisation agreements;
• tech transfer agreements;
• agreements for distribution and servicing of vehicles;
• insurance agreements; and
• agreements between enterprises in transport sector.

Scope of Application

The scope of the Law on Protection of Competition is not limited to conduct within Kosovo, but to conduct that produces effects on the Kosovo market, regardless of where the undertakings are established or where the relevant activity takes place. If an anti-competitive agreement is concluded between foreign undertakings, it may still fall in within these prohibitions if it affects competition within Kosovo.

An undertaking is considered to hold a dominant position when, due to its power in the market, it can operate independently of actual or potential competitors, consumers, purchasers or suppliers in the relevant market. Dominant position is especially considered if the undertaking has no significant competitors in the relevant market and has substantial power compared to other competitions, for instance, in reference to their position in the market, financial strength access to suppliers or ability to impose market conditions on its supply or demand.

A rebuttable presumption of dominance is established if the relevant undertaking holds a share of 40% or more in a relevant market. A group of undertakings may also be presumed dominant if their joint market share exceeds 60% and they operate jointly or are able to operate independently of market conditions.

Article 9 of the LPC prohibits the misuse of a dominant position. Examples of abusive conduct include:

• directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;
• limiting production, markets or technical development at the expense of consumers;
• applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;
• making the conclusion of contracts subject to supplementary obligations that have no connection to the object of the contract;
• imposing prices that restrict market entry or force competitors to leave the market; and
• denying other enterprises a resource necessary or indispensable for competition in the market for certain suppliers.

If the Authority determines a misuse of dominance, it may adopt a decision prohibiting the unlawful conduct, imposing surveillance or structural measures for avoiding the anti-competitive effects of the conduct and imposing administrative fines.

Law No 08/L-059 on Patents determines the process for patent protection in Kosovo. A patent is defined as an exclusive right granted for an invention in all fields of technology, if that invention is new, involves an inventive step and is capable of industrial application.

Patent protection entails the right to prevent third parties from making, offering for sale, selling, using, exporting, importing or stocking the patented product or a product that results from a patented process.

Length of Protection

The term of a patent is 20 years from the filing date of the application. For pharmaceutical or plant protection products, a supplementary protection certificate (SPC) may extend protection for a period equal to the time elapsed between the filing date and the first market authorisation, reduced by five years. The maximum duration of an SPC cannot exceed five years.

Registration Process

The Industrial Property Agency (IPA) is responsible for the legal protection of inventions and the patent registration procedure. The procedure consists of the following steps.

• Application for the patent is submitted to the IPA; this must include a request for recognition, a description of the invention, patent claims, drawings and an abstract of the invention. At the request of the applicant, the IPA can issue a certificate of the right of priority, acquired on the date of submission of the patent application.
• Once the application procedure is completed, the IPA performs a formal examination to check for completeness and fee payment. If the IPA determines that the conditions for the patent application have not been met, it may request the applicant to correct the issues concerned. If the applicant does not correct these issues, the IPA may issue a decision rejecting the patent application.
• The IPA also conducts a substantive assessment to determine whether the subject matter meets the patentability requirements and whether it complies with the rule on the unity of invention.
• The IPA grants patent applications that meet all formal and substantive requirements. Once the patent is successfully registered, the patent owner receives an official certificate and specification, which officially establishes their enforceable rights against third parties. To maintain protection beyond the tenth year, the owner must submit written evidence of patentability from recognised national or international offices; otherwise, the patent protection lapses (or may be amended or invalidated) on the date of the expiry of the tenth year of the patent term.

Enforcement and Remedies

Claims for protection may be initiated by the patent holder, authorised representatives or exclusive licensees.

There are two primary legal avenues for right holders in cases of infringement; they may request a court order to terminate current violations or prohibit future ones (where infringement is imminent), and/or they may request a court order to seize and remove all infringing products as well as the materials or tools used in their manufacturing from the market.

Right holders can additionally claim for damages in proportion to actual damage, including lost profits and moral prejudice. Alternatively, compensation may be calculated as a lump sum based on elements such as hypothetical licensing fees applicable had the infringer pursued a licence to use the patent. If an offender acted without knowledge of the infringement, the court may order the return of profits gained from unauthorised use.

Legal entities may face fines between EUR2,000 and EUR6,000 for using products or services in violation of patent rights, while natural persons may be fined between EUR1,000 and 3,000.

Pursuant to Law No 08/L-075 on Trademarks, a trade mark may be “any mark, in particular words, including personal names or drawings, letters, numbers, colours, the shape of goods or their packaging, or the sounds-voices”, provided they distinguish goods or services of one particular entity and are clearly defined in the register.

Trade mark rights are acquired through registration in the Trademark Register maintained by the IPA. This registration entails an exclusive right and allows the holder to prohibit third parties from using identical or similar signs for identical or similar goods or services in commercial business without their prior consent.

Length of Protection

Trade marks are registered for an initial period of ten years from the date the application is submitted. Registration may be extended for subsequent periods of ten years through a renewal process.

Registration Process

The procedure begins with a submission to the IPA containing the application for trade mark registration, data on the applicant, a list of goods and services for which registration is required based on the Nice Classification system, and the appearance of the mark.

After the application is submitted, the IPA conducts a formal examination for completeness and fee payment. It also examines absolute grounds for refusal, including a lack of distinctive features, the likelihood of misleading the public and whether the mark is contrary to public policy.

If the requirements are met, the application is published in the IPA bulletin. Within three months of publication, holders of earlier trade marks or authorised representations may oppose the registration based on relative grounds, such as similarity to their earlier mark. If no grounds for refusal exist and no opposition is successful, the IPA registers the trade mark.

Enforcement and Remedies

Enforcement procedures and remedy options closely observe the same actions outlined in 7.1 Patents. However, unique to trade mark protection, right-holders have the additional option to request courts to prevent continuous infringement by ordering a fine of EUR5,000 to EUR10,000 for each infringement.

General sanctions for violations include fines between EUR 5,000 and EUR15,000 for unauthorised use by legal persons, while natural persons may be fined between EUR200 and EUR3,000 depending on their business status.

Protection for industrial designs is covered by Law No 08/L-055 on Industrial Designs, pursuant to which an industrial design is protected if it is new and possesses individual character. A design is considered to be new if it is not identical to any other design made available to the public before the filing or priority date; and it considered to have individual character if the overall impression it produces on an informed consumer differs from the impression left by any previous design.

Protection grants the owner the exclusive right to use the design and prevent unauthorised third parties from activities including processing, offering, marketing, importing and exporting products incorporating the design.

Length of Protection

The initial term of protection is five years from the date the application is submitted. This registration may be extended for additional five-year periods up to a maximum total duration of 25 years.

Registration Process

The procedure is initiated by filing an application with the Agency for Industrial Property (AIP). The application must include a request for registration, applicant identification, a representation of the design suitable for reproduction and the names of the relevant products. Once the application is submitted, the applicant has the right of priority over any other future applicant for registration of the same design and may be issued a priority certificate upon request.

The AIP then conducts a formal examination to verify compliance with filing requirements and fee payments. It may reject the registration if the design does not meet legal definitions, is contrary to public interest and moral principles, or constitutes an unauthorised use of the products outlined in Article 6 of the Paris Convention for the Protection of Industrial Property.

Enforcement and Remedies

Enforcement procedures and remedy options closely observe the same actions outlined in 7.1 Patents. Legal entities infringing industrial design protection face fines between EUR3,000 and EUR9,000, while natural persons in business may be fined between EUR1,000 and EUR3,000.

The framework for copyright is set out in Law No 08/L-205 on Copyright and Related Rights. Copyright protection applies to “works”, which are original intellectual creations in the fields of literature, art or science. This includes literary works, computer programs, musical works, audiovisual works, works of fine art, architecture and photographic works.

Authors possess exclusive economic rights under Article 23 to authorise or prohibit the use of their works, including reproduction, distribution, rental, public performance, broadcasting and communication to the public. Moral rights are also protected, namely the right of disclosure, the right to claim authorship, the right of integrity and the right of withdrawal.

Length of Protection

The exclusive economic rights are protected for the life of the author and for 70 years after their death. Moral rights are protected without time limit.

Registration Process

Authors enjoy copyright protection by the sole fact of creating the work. No registration or other formality is required for the copyright.

Enforcement and Remedies

Unique to copyright, claims may also be filed by collective management organisations or professional protection bodies, in addition to right holders and authorised licensees. The statute of limitations for filing a lawsuit is three years from the moment of discovery of the infringement.

Courts may issue interim injunctions to prevent infringement, order the seizure of suspected infringing goods, order a recurring penalty payment or block financial assets and bank accounts in cases of wider commercial-scale infringement. Once a final verdict is issued confirming the infringement, the court implements permanent corrective actions, including:

• ordering the definitive recall from the channels of commerce;
• removal from the market; or
• destruction the infringing goods and the tools used in their manufacturing.

With respect to damages, compensation is to take into consideration financial losses, lost profits, moral damages and any unfair profits the infringer generated. Alternatively, they can be set as a lump sum payment, which, at a minimum, are to be equal to twice the normal licensing fee an infringer would have been subject to pay had they sought licensing, or three times if the infringement was conducted for commercial gain.

With respect to administrative sanctions, legal persons using works without authorisation face fines between EUR5,000 and EUR20,000, and individual businesses face fines between EUR500 and EUR3,000.

Software

Treatment of software IP is treated within the framework of the Law on Copyright and Related Rights, where computer programs are expressly listed as protected works.

Databases

Databases are offered dual protection under Copyright Law.

• They are protected as works as long as the creation, selection or arrangement of their contents represents an original intellectual creation. However, copyright protection for databases is limited specifically to the structure or arrangement of the information and does not extend to the contents themselves, nor does it cover the software used to operate the database.
• Pursuant to Article 78, a database creator who has made a substantial investment in gathering, verifying or presenting data has the right to prevent the extraction or re-utilisation of all or of substantial parts of those contents. This right is independent of copyright eligibility, which means the database can be protected under copyright for its structure as well as through the sui generis right for its contents. This right is protected for 15 years, calculated from January 1 of the year following the date of completion or when it was made available to the public.

Trade Secrets

Trade secrets are protectable under Law No 08/L-076 on the Protection of Trade Secrets, under which a trade secret is any information that is not generally or readily accessible within the circles that normally deal with the kind of information in question, has commercial value due to its secrecy and has been subject to reasonable steps by the person lawfully in control of the information to be kept secret.

Protection is granted against the unauthorised acquisition (accessing or copying documents/files), use or disclosure of the secret, especially when it involves a breach of a confidentiality agreement or a duty to limit use.

This protection ends if the information becomes generally known or readily accessible over time, or if a court order is issued confirming that the secret does not meet legal requirements.

Law No 06/L-082 on the Protection of Personal Data (LPPD) constitutes the relevant regulation in Kosovo for data protection obligations. It is designed to be in compliance with the EU’s General Data Protection Regulation (EU) 2016/679 (GDPR). The competent authority for the supervision and implementation of this law is the Information and Privacy Agency.

The LPPD applies to the processing of personal data by both public and private bodies (bar processing for purely personal purposes), including Kosovo’s diplomatic and consular offices abroad, as well as data controllers not established in Kosovo who use Kosovo-based equipment, automatic or otherwise, for processing purposes.

Under the LPPD, a data controller is defined as any natural or legal person, public authority, agency or other body that, alone or jointly with others, determines the purposes and means of personal data. When two or more controllers jointly determine the purposes and means of processing, they are considered joint controllers.

A data processor is defined as any natural or legal person from the public or private sector who processes personal data for and on behalf of a data controller. If a processor acts beyond its instructions and determines the purposes and means of processing, they are legally considered to be a controller relative to those specific processing activities.

Data processing is considered lawful only if at least one of the following bases applies:

• consent of the data subject;
• performance of a contract;
• compliance with a legal obligation;
• protection of vital interests;
• performance of a public task; or
• legitimate interest.

The LPPD extends its scope to data controllers established outside of Kosovo if they use automatic or other equipment within the territory for the purpose of processing personal data, unless that equipment is used only for transit.

Foreign controllers are obliged to designate a representative registered in Kosovo to handle processing issues and ensure compliance with the LPPD.

The obligation to designate a local representative does not apply if:

• the processing in question is occasional;
• the processing does not include large-scale processing of special categories of data (ie, data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, identifiable biometric data and other categories as expressly listed in Article 8 of the LPPD);
• the processing is related to criminal convictions; and
• the processing is unlikely to pose a risk to the rights and freedoms of natural persons.

Additionally, foreign public bodies or authorities are exempted from the obligation to designate a local representative.

The Information and Privacy Agency (the “Agency”), led by the Commissioner, is the independent authority responsible for supervising the implementation of Law on the Protection of Personal Data and other regulations concerning personal data protection and access to public documents.

The Agency is additionally tasked with providing advice to public and private bodies on data protection-related issues, informing the public on relevant developments, issuing decisions about complaints from data subjects, supporting the fundamental right of personal data protection, carrying out inspections, carrying out periodic reviews of issued certificates to data controllers, and providing opinions for public institutions and advising the Assembly of Kosovo and the government on legislative measures.

The Agency has the authority to carry out inspections and audits ex officio to monitor compliance with data protection rules. If a violation is identified during the inspection, the Agency can order the elimination of processing irregularities or deficiencies, including the erasure, blocking, deletion or anonymisation of relevant data. Other available measures are temporary or definite bans on data processing or transfers, orders directed to controllers to meet data subjects’ requests for the exercise of their rights and fines. In cases of serious and great violations, the Agency may impose fines between EUR20,000 and EUR40,000, or for companies, an amount representing 2% to 4% of their general turnover from the previous fiscal year.

The Agency also holds specific authorisation powers; for instance, private sector controllers may only implement biometric measures upon receiving authorisation.

Kosovo may see several legislative reforms in the near future, although their timing and adoption remain uncertain given that the country has held three general elections within 18 months. Based on the government’s Draft Laws Programme 2026–28, potential reforms may affect taxation, customs, investment and financial markets, public-private partnerships, state aid, business organisations, trade, consumer protection, employment, occupational safety and competition.

However, these reforms should be treated as indicative rather than confirmed until a fully mandated government and assembly advance them through the legislative process.