Business Opportunities in Kosovo: Europe’s Safest Investment Hub

In 2025 Kosovo gained international attention when Gallup’s Global Safety Report ranked it as the safest place in Europe. The report found that Tajikistan topped the Law and Order Index with a score of 97/100, followed by Singapore (95) and then Kosovo (94)gallup.com. Within Europe, Kosovo’s score of 94 was higher than those of Iceland (93), Norway (92), Austria (91) and Switzerland (91)gallup.com. This remarkable performance is the result of improved law enforcement and public trust, and it underscores the country’s potential as a stable and attractive destination for investors.

Beyond safety, Kosovo offers a pro‑business environment, a young and educated workforce, competitive tax rates and proximity to major markets. This article explores why Kosovo stands out as a promising investment destination in Southeast Europe.

Kosovo’s Safety Ranking and Reputation

Gallup’s Law and Order Index measures how secure people feel by asking whether residents feel safe walking alone at night and whether they trust local police. In the latest report, Kosovo achieved 94/100, placing it first in Europe and third globally behind Tajikistan and Singaporegallup.com. Gallup’s data show that most European countries score in the low 90s, but Kosovo’s higher score sets it apartgallup.com.

The Law and Order Index captures perceptions of safety rather than crime statistics. High scores typically reflect improvements in policing, rule of law and public confidence. Kosovo’s rapid rise in the ranking suggests that public institutions are becoming more effective and that citizens feel increasingly secure. This perception of safety is crucial for businesses, as investors are more likely to commit capital in a jurisdiction where employees and assets are protected.

Kosovo Business Growth Illustration

This abstract digital illustration features a blue-toned outline of Kosovo at its center. Network lines branch out to stylized icons representing fast growing industries such as technology, renewable energy and agriculture, while the upward arrow and bar chart convey economic growth for the last 5 years.

Local media and government officials emphasize this achievement. Reports from DTT‑Net and KoSSev note that Kosovo’s government highlighted the ranking as proof that the country is “first in Europe and third worldwide” on Gallup’s Law and Order Index, scoring 94 out of 100dtt-net.comkossev.info. These reports also clarify that the index is based on household surveys, further validating that everyday citizens feel safer.

Favourable Business Environment

Competitive Tax Policies and Legal Framework

One of Kosovo’s strongest draws for investors is its flat corporate income tax of just 10 percentstate.gov—among the lowest in Europe. Low taxes reduce the cost of doing business and leave more profits available for reinvestment. The country introduced a Commercial Court in 2022, which, according to the U.S. Department of State, has already begun reducing case backlogs and improving predictability in commercial disputesstate.gov. This initiative strengthens contract enforcement and signals a commitment to the rule of law.

Kosovo’s legal and accounting standards align with European Union norms; large companies must comply with international accounting rulesstate.gov. The government has been encouraging foreign direct investment (FDI) by offering equal treatment for foreign and domestic investors and by creating a one‑stop shop for business registration through the Kosovo Business Registration Agency (ABRK)state.gov. ABRK allows online registration and typically issues a business certificate and VAT number within one to six days, although actual times may varystate.gov.

Young, Multilingual Workforce

Kosovo has one of the youngest populations in Europe—more than half of its citizens are under 30—and many young people are multilingual. The U.S. Department of State observes that investors are attracted by Kosovo’s young, multilingual population, low labour costs and proximity to the EU marketstate.gov. Ecovis International notes that over 50 % of the population is under 30 and that the workforce is highly educated in fields such as IT, engineering and financeglobal.ecovis.com. Competitive wages further enhance the country’s appealglobal.ecovis.com.

Strategic Location and Market Access

Located in the heart of the Balkans, Kosovo offers easy access to two ports—Durres in Albania and Thessaloniki in Greece—which shortens transport distances between Asia and Europe. Kosovo is a signatory to the Central European Free Trade Agreement (CEFTA) and has a Stabilization and Association Agreement (SAA) with the European Union, granting duty‑free access to a market of more than 500 million consumersstate.gov. In January 2025, Kosovo also signed a Free Trade Agreement with EFTA member states—Iceland, Liechtenstein, Norway and Switzerland—further boosting its trade prospectsstate.gov.

Near‑shoring and Friend‑shoring Opportunities

COVID‑19–related supply chain disruptions have encouraged companies to move production closer to European markets. The State Department notes that some firms are using Kosovo as a friend‑shoring base for production destined for the EUstate.gov. Kosovo’s competitive taxes, young workforce and EU market access make it a logical choice for near‑shoring manufacturing and services.

Key Opportunity Sectors

Information Technology and Digital Services

Kosovo’s government aims to establish the country as a regional IT hub. The U.S. International Trade Administration reports that telecommunications operators have transitioned to 3G and 4G services, and the government is positioning Kosovo for IT‑related products and servicestrade.gov. There is a growing number of outsourcing firms and call centres serving European and U.S. marketstrade.gov. The OECD notes that customs duties on ICT equipment were eliminated in 2014 and that competitive wages, strong English proficiency and skilled youth have fostered ICT clusters, attracting foreign companiesoecd.org.

Energy and Renewable Resources

Energy is a priority sector. Kosovo has the world’s fifth‑largest lignite coal reserves, which currently fuel more than 90 % of domestic electricity productiontrade.gov. However, the government’s National Energy Strategy commits to increasing renewable energy to at least 35 % of the generation mix, reducing greenhouse‑gas emissions by 32 %, and phasing out at least one lignite unit by 2031trade.gov. With support from USAID and the EU, Kosovo has launched its first 100‑MW solar auction and is expanding energy storage and efficiency programstrade.gov. These initiatives open opportunities for investors in solar, wind, hydropower and battery storage projects.

Mining and Minerals

Mining has been a traditional pillar of Kosovo’s economy. The International Trade Administration notes that the country’s largest exports include scrap metal, nickel, lead and mattressestrade.gov. The mining sector still offers significant potential: the Independent Commission of Mines and Minerals has issued over 500 exploration and mining licences since 2007trade.gov. Critical minerals such as nickel and manganese are known to exist, but licensing delays and infrastructure upgrades present challengestrade.gov—which also means there is room for private investment.

Agriculture and Food Processing

Kosovo’s fertile land supports diverse crops. The country is focusing on modernising agriculture to raise productivity and encourage agribusiness investmentremotepeople.com. Opportunities exist in supplying agricultural inputs, machinery and technology; there is also growing regional demand for processed food productsremotepeople.com. Government initiatives to attract foreign investment into agribusiness make this sector particularly promising.

Tourism and Hospitality

Kosovo’s natural scenery and cultural heritage are drawing tourists. Investments in ski resorts, hiking trails and cultural routes, along with improved air connectivity and visa liberalisation, are creating opportunities in hotels, resorts, restaurants and tour operationsremotepeople.com. As more visitors arrive from neighbouring countries and the diaspora, hospitality infrastructure will need to expand.

Waste Management and Health Services

Waste collection, treatment and recycling are underdeveloped in Kosovo. The trade guide notes that illegal dump sites are common and existing landfills are poorly constructedtrade.gov. Businesses that can provide recycling, hazardous waste handling and modern landfill services may find opportunities as the government updates its regulations. The health sector is another area of need; the country’s healthcare system struggles to meet demand and many citizens travel abroad for treatmenttrade.gov, indicating potential for investment in clinics, telemedicine and specialised facilities.

Ease of Doing Business and Government Reforms

Kosovo continuously reforms its business environment. The government is reorganising its investment promotion agencies into the Agency for Investment and Exports (AIE) and the Agency for Innovation and Support to Enterprises (AISEK) to reduce bureaucratic barriers and provide more efficient services to investorsstate.gov. Business associations still call for stronger public‑private dialogue, but these reforms show a commitment to improving the climate for enterprises.

The country’s legal framework treats foreign and local investors equally, with no restrictions on foreign ownershipstate.gov. Kosovo is not yet a member of the WTO or OECD, but EU integration is a long‑term goal. The Stabilization and Association Agreement (SAA) and Free Trade Agreements ensure continued progress towards harmonising trade rules with European standardsstate.gov.

Kosovo’s position as Europe’s safest country according to Gallup’s Law and Order Index underscores a broader transformation. With a low 10 % corporate tax rate, a young and skilled workforce, improving infrastructure and proximity to major European markets, Kosovo is becoming a compelling location for investors. Sectors such as information technology, renewable energy, mining, agriculture, tourism and waste management offer significant opportunities for growth. Government reforms—such as the creation of a commercial court and streamlined business registration—support this trend and signal a welcoming environment for foreign investors.

As global supply chains shift and companies look for stable, cost‑effective locations, Kosovo stands out. Businesses seeking to expand into Southeast Europe should consider Kosovo not only because it is safe but because it offers a unique combination of security, youth, affordability and market access.