Bosnia Business Laws for Opening a Company
Essential legal information for opening a company in Bosnia and Herzegovina. Complete guide to business laws, taxes, VAT rates, and legal requirements for LLC setup in Sarajevo.
VAT LAWS IN BOSNIA
Value Added Tax LAWS, rates and regulations
Standard Rate
Most goods and services
Reduced Rate
Essential goods (bread, milk, medicines)
Zero Rate
Exports and certain services
VAT REGISTRATION
Mandatory Registration
Annual turnover exceeds BAM 50,000 (≈€25,600)
Voluntary Registration
Below threshold but wish to register
For official VAT regulations and detailed information:
Official VAT Regulations - Government of Bosnia and HerzegovinaTAX LAWS IN BOSNIA
Corporate and personal tax LAWS and rates
Corporate Income Tax
10%One of Europe's lowest rates
Personal Income Tax
10%Flat rate for individuals
Withholding Tax
5-10%Dividends, royalties, interest
Social Security
37.1%Employer and employee combined
TAX BENEFITS
Corporate tax rate - one of Europe's lowest
Tax holidays for new investments
Profit reinvestment deduction
For comprehensive tax information and official guidelines:
Official Tax Information - Foreign Investment Promotion AgencyWHO CAN OPEN COMPANY IN BOSNIA
Eligibility requirements for company formation
ELIGIBLE ENTITIES
REQUIREMENTS
PROPERTY BUYING IN BOSNIA
Foreign ownership rules and regulations
| Property Type | Foreign Ownership | Notes |
|---|---|---|
| Residential Property | Yes | With reciprocity agreement |
| Commercial Property | Yes | Through registered company |
| Agricultural Land | Limited | Special permissions required |
| Forest Land | No | Restricted to citizens only |
RECIPROCITY PRINCIPLE
Foreign nationals can buy property if their country allows Bosnian citizens to buy property there.
COMPANY OWNERSHIP
Foreigners can buy property through a Bosnian company, which provides more flexibility.
ADDITIONAL INFORMATION
BUSINESS LICENSES
Most businesses require specific licenses. We help obtain all necessary permits.
BANKING
Open corporate bank accounts with major Bosnian banks. Minimum deposit requirements vary.
COMPLIANCE
Annual reporting requirements, tax filings, and regulatory compliance assistance.
NEED LEGAL GUIDANCE?
Our experts help navigate Bosnian laws and regulations for your business.