Informative summary
Kosovo has approved the new Law no. 08/l-209 on Sustainable Investments, an important legislative step towards promoting economic development through sustainable investments. With the entry into force of this law, the two previous laws are repealed: Law no. 04/L-220 on Foreign Investments and Law no. 05/L-079 for Strategic Investments. This new law emphasizes the promotion, support and protection of sustainable investments that are consistent with national development objectives.
Key Highlights of the new Law:
Equal Treatment of Investors: Both foreign and domestic investors will be treated equally under the law, with the same rights and obligations. This approach ensures a level playing field for all those who wish to invest in Kosovo.
Investment Rights: Investors can engage in any economic activity throughout the territory, as long as it is in accordance with the legislation in force.
Special Benefits for Investors: Investors can benefit from favorable conditions related to international agreements, such as tax exemptions, customs facilities and investment dispute settlement mechanisms.
Protection and Security: Investments enjoy full protection and security, increasing investors' confidence in the legal framework of Kosovo.
National Objectives and Priority Sectors:
The law defines national objectives, among others, such as increase of manufacturing and exports, promoting the circular economy, increasing the competitiveness of local industry, innovation and technology, empowering youth, women, non-majority communities and marginalized groups, diaspora engagement, regional development and environmental sustainability. To achieve these objectives, the law identifies several priority sectors for investment, which include, among others, manufacturing and processing industry, innovation, agriculture, information technology, education, health, tourism, transport and energy. Investors who match their projects with these sectors and national objectives may be qualified for special facilities and benefits, especially in the case of strategic investments that contribute to the achievement of national objectives.
New Investment Support Institutions:
With the entry into force of the law, the Investment and Enterprise Support Agency (KIESA) shall be
dissolved, and two new agencies will be established to take its place, namely:
Agency of Investments and Exports (AIE)
Agency for Innovation and Support to Enterprises in the Republic of Kosovo (AISEK)
Strategic Investments and Public Order
While encouraging investment, the law also recognizes the importance of maintaining public order and state security. It provides for additional or complementary verifications for foreign investments in cases where there is a risk of violating public order or state security.
Dispute Resolution: Mediation and Arbitration
Regarding the resolution of disputes, the law provides that the Republic of Kosovo and the investor may agree to resolve the investment dispute through mediation or arbitration, by predetermining the terms and conditions of the procedure.
Why is this Law important:
This Law is a powerful tool to steer Kosovo towards a sustainable future by promoting development in key sectors of the economy that emphasize inclusive growth, innovation and environmental care. Prioritizing sustainability, this law aligns Kosovo's growth with global trends. Lawyers play a crucial role in advising clients through this new legal framework, helping them to harness its benefits and actively contributing to the development of a more sustainable society and economy.
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