Bosnia and Herzegovina is located in Southern and Southeastern Europe in the Balkans. Bosnia and Herzegovina borders Croatia, Montenegro and Serbia and has access to the Adriatic Sea. Bosnia and Herzegovina has a territory of 51,129 square kilometers. The capital city of Bosnia and Herzegovina is Sarajevo, the largest city and the location of key government institutions. Bosnia and Herzegovina has a population of 3,5 million people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax (Federation of Bosnia and Herzegovina, Republika Srpska, Brčko District) - 10%. Tax returns are filed on an annual basis. Advance income tax payments are made on a monthly basis
2. Dividends:
- Dividend withholding tax (Federation of Bosnia and Herzegovina) - 5%
- Dividend withholding tax (Republika Srpska) - 10%
- Dividend withholding tax (Brčko District) - 0%
3. Interest withholding tax:
- Interest withholding tax (Federation of Bosnia and Herzegovina) - 10%
- Interest withholding tax (Republika Srpska) - 10%
- Interest withholding tax (Brčko District) - 10%
4. Royalties withholding tax:
- Royalties withholding tax (Federation of Bosnia and Herzegovina) - 10%
- Royalties withholding tax (Republika Srpska) - 10%
- Royalties withholding tax (Brčko District) - 10%
5. Capital gains tax (Federation of Bosnia and Herzegovina, Republika Srpska, Brčko District) -
10%6. VAT -
Standard tax rate 17% or reduced rate
0% or
tax exempt. Tax returns are filed
on a monthly or a quarterly basis7. Personal income tax (Federation of Bosnia and Herzegovina, Republika Srpska, Brčko District) -
10%.
The following are the most common types of companies to incorporate a company in Bosnia and Herzegovina as:
- Limited liability company (Društvo s ograničenom odgovornošću - d.o.o.)
- Unlimited joint liability company (Društvo s neograničenom solidarnom odgovornošću - d.n.o.)
- Public limited company (Dioničarsko društvo - d.d.)
- Limited partnership (Komanditno društvo - k.d.)
- Branch office (Filijala).
Official currency of Bosnia and Herzegovina is The Bosnia-Herzegovina Convertible mark (BAM).
Bosnia and Herzegovina has a transitional upper middle income market economy. The economy of the country is dominated by the service sectorwith a moderately developed industrial and manufacturing sector with a small agricultural sector.
The GDP of Bosnia and Herzegovina grew by 7.1% in 2021 and amounted to USD 23.4 billion. Tertiary sector makes up almost 56% of the GDP of the country, followed by industry sector at 24.6%, agriculture at 5.7%.
In terms of foreign trade the largest exports of the country are furniture; bedding, mattressess, cushions, lamps and lighting fittings, illuminated signs, illuminated name-plates, prefabricated buildings, mineral fuels, mineral oils and products of their distillation, bituminous substances, mineral waxes, electrical machinery and equipment, iron and steel, wood, aluminium, footwear, inorganic chemicals.
Imports of Bosnia and Herzegovina consist of energy, electricity, petroleum oils, natural gas, structures intended for construction, coal, cars and vehicles, electric equipment, consumer goods, medicaments, copper.
Primary trading partners of Bosnia and Herzegovina are Germany, Serbia, Hungary, Croatia, Austria, Montenegro, Poland, Czech Republic, China, Poland, Turkey, Switzerland, Netherlands and Slovenia.