Investor Protection

The Law on Foreign Investment protects, promotes, and encourages foreign investment in the Republic of Kosovo, providing foreign investors with a set of fundamental rights and guarantees to ensure foreign investors that their investments will be protected and treated with fairness in strict accordance with the accepted international standards and best practices.

Notably, the rights accorded to a foreign investor are as follows:

Non-discriminatory treatment

Compensation in case of violation of applicable law and international law attributable to Kosovo

Constant protection and security

Freely transferable and otherwise unrestricted use of income

Compensation in case of nationalization or expropriation, including payment of interest

Protection against retroactive application of laws
Bilateral Agreements on Investment Promotion and Protection

The Government of Kosovo has concluded several bilateral agreements in relation to the promotion and protection of investments, namely with: Albania, Austria, Belgium, Canada, Croatia, Germany, Kuwait, Luxembourg, Montenegro, North Macedonia, Qatar, Switzerland, Turkey, and the USA (Development Finance Corporation).

Law on Strategic Investments

Kosovo’s Law on Strategic Investments eliminates the lengthy bureaucratic procedures which had deterred investment. It also provides enhanced transparency in the implementation of foreign investment projects in Kosovo. It enables the government to negotiate directly with both foreign and domestic investors.

The conditions for attracting foreign investors which it provides are equal to those of other countries of the region.

Source: A Foreign Investor’s Guide 2020 – Konrad Adenauer Stiftung.

The first strategic investor in Kosovo, and the largest German investor in Kosovo, is SOWI Kosovo.

Their project is for the construction of a 105 MW capacity wind farm with 30 wind turbines, at a cost of €150 million. SOWI’s project is the largest foreign investment in Kosovo since the state was founded in 2008.