Europe

Kosovo: tax at a glance

The country uses the euro unilaterally. Personal tax is a low progressive rate up to 10%, corporate tax is a flat 10%, and dividends are tax-exempt.

Worldwide (residence-based) Last verified July 2026

The taxes

Personal income (top)
10%
Corporate income
10%
Capital gains
Taxed as ordinary income, at 10%
VAT / TVSH (VAT)
18%
Dividends (WHT)
0% (dividends exempt)
Interest (WHT)
10%
Royalties (WHT)
10%
Social security (employee)
5% (pension)
Social security (employer)
5% (pension)
Wealth tax
None
Inheritance / estate
None
Property tax
Annual property tax of 0.15-1%, set by municipalities

How the system works

Tax system
Worldwide (residence-based)
Foreign income
Taxed (worldwide)
Taxes by citizenship
No
Exit tax
No
CFC rules
No
CRS
Not participating

The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.

Frequently asked

What is the income tax rate in Kosovo?

The top marginal personal income tax rate in Kosovo is 10%. Progressive up to 10%, across 0% / 4% / 8% / 10% brackets.

What is the corporate tax rate in Kosovo?

The headline corporate income tax rate is 10%.

Does Kosovo tax capital gains?

Capital gains for individuals: Taxed as ordinary income, at 10%.