# Bosnia & Herzegovina

 Country code: BA · Currency: BAM · Language: Bosnian

**Pros**
- Low flat tax rate of 10% for corporate and personal income.
- Strategic geographic position for access to European Union markets at lower operational costs.
- Minimal state interference in specific sectors and high levels of personal and cultural freedom.

**Cons**
- Complex bureaucratic structure with multiple government layers and significant administrative hurdles.
- High levels of systemic corruption and political instability with negative impact on long-term business predictability.
- Underdeveloped transport infrastructure and slow pace of digital public service implementation.

Long story short: Income tax and corporate tax cap out at 10% here. The taxman will never come after you.

The flip side: two parallel administrations, two sets of rules, and corruption that seeps into every level, from the counter clerk to the ministry. Setting up a company means juggling two bureaucracies that don't talk to each other.

Beyond that: in Sarajevo's upscale neighborhoods, things stay calm. Banks, mostly owned by Austrian and Italian groups, are solid. The food is excellent, and the mountains just outside town are worth the detour.

## Will your income be taxed?

Long story short: YES, BUT LIGHTLY.
Personal income gets a modest trim in **Bosnia and Herzegovina**, peaking at **10%**. The state takes its cut, but the bill is readable and won't ruin your year.

Residency follows the standard playbook: day counts, economic ties, nothing sneaky.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 10% | flat rate |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | exists here |  |
| Family centre | does not exist here |  |
| Habitual abode | exists here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: NO.
**Bosnia and Herzegovina** keeps its hands off what you hold. *No capital gains tax*, no annual wealth grab, no inheritance regime.

Your portfolio compounds in peace and leaves the way it came in; nobody's standing at the door with their palm out.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | NONE | flat |
| Dividend tax | NONE | flat |
| Interest income | 10% | flat |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback rate: 13% · Bosnia and Herzegovina has no specific cryptocurrency tax law; instead, general income tax rules apply. Tax treatment varies by entity: the Federation of BiH (FBiH) taxes crypto gains at a 10% flat rate as 'other income', while Republika Srpska (RS) applies a 13% tax on capital gains. The Central Bank classifies crypto as an intangible asset/property rather than legal tender. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES, BUT EXPOSED.
Corporate tax in **Bosnia and Herzegovina** is *low* (**10%**), and that's where the good news dies. *Misuse of corporate assets is a crime* here: personal use of company funds can get you prosecuted, even as sole shareholder, and your own consent won't save you.

*And* the registries are *public*: your shareholding, one search away.

Cheap to run, but you're exposed, legally and reputationally. The rate is the bait; the friction is the hook.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 10% | flat |
| VAT standard rate | 17% | single rate · no reduced tiers |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 17% |
| Food & drink | non-alcoholic | 17% |
| Food & drink | alcohol | 17% |
| Print media | books | 17% |
| Print media | ebooks | 17% |
| Print media | newspapers | 17% |
| Culture | cultural events | 17% |
| Culture | cinema | 17% |
| Culture | theatre | 17% |
| Culture | museums | 17% |
| Culture | sports | 17% |
| Transport | public transit | 17% |
| Transport | rail | 17% |
| Transport | air | 17% |
| Hospitality | hotels | 17% |
| Hospitality | restaurants | 17% |
| Hospitality | takeaway | 17% |
| Health | pharma | 17% |
| Health | medical dev. | 17% |
| Energy | electricity | 17% |
| Energy | natural gas | 17% |
| Energy | district heat. | 17% |
| Energy | domestic fuel | 17% |
| Utilities | water | 17% |
| Utilities | waste | 17% |
| Clothing | kids clothing | 17% |
| Digital & telecom | digital | 17% |
| Digital & telecom | telecom | 17% |
| Digital & telecom | broadcast | 17% |
| Construction | construction | 17% |
| Construction | social housing | 17% |
| Agriculture | farm inputs | 17% |
| Agriculture | animal feed | 17% |
| Personal services | funeral | 17% |
| Personal services | hairdressing | 17% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | CRIMINAL | criminal liability · Article 383 of the Criminal Code of the Federation of Bosnia and Herzegovina (Krivični zakon FBiH) · In Bosnia and Herzegovina, particularly within the Federation of BiH (FBiH), the legal system follows a strict 'Autonomy of the Legal Entity' principle. Under Article 383 (Abuse of Position or Authority), a sole shareholder-director can be criminally prosecuted for using company funds for personal expenses because the law does not distinguish between public officials and responsible persons in private companies. The company is treated as a separate legal entity and a victim of the 'unlawful benefit' obtained by the director, even if the company is solvent and the sole owner consented to the transaction. This interpretation is a legacy of socialist law and remains a point of significant legal controversy and calls for reform by employers' associations. |
| Shareholders privacy | PUBLIC | Registers of Business Entities in Bosnia and Herzegovina |
| Directors privacy | PUBLIC | Registers of Business Entities in Bosnia and Herzegovina |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Društvo sa ograničenom odgovornošću (Limited Liability Company). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Notary fees for founding act and statute | USD 178 |  |
| Court registration and administrative fees | USD 207 |  |
| Official Gazette publication fee | USD 89 |  |
| Professional incorporation service (Lawyer/Agency) | USD 1,185 |  |
| Total | USD 1,659 |  |

## A good fit for a holding?

Long story short: NO.
**Bosnia and Herzegovina** has no treaty network at all, which buries the holding question, full stop.

Every dividend in or out eats the statutory withholding at full rate, and no domestic regime can patch a hole that sits on the source side. Don't park a holding here.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | NONE | no dividend participation exemption regime |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 5% | non-resident outbound |
| WHT · interest | 10% | non-resident outbound |
| WHT · royalties | 10% | non-resident outbound |
| Tax-haven WHT | 5% | penalty rate · blacklisted destinations |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 0 | active |
| Treaties pending | — | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Bosnia and Herzegovina** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 8 years | available path to naturalisation |
| Marriage | 5 years | available path to naturalisation |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: PARTLY.
**Bosnia and Herzegovina** has signed *most* of the standard exchange frameworks *and* runs a public corporate registry. Your accounts get reported to your home tax office, and your shareholdings sit in the shop window.

Watched on both axes: not wall-to-wall, but don't come here for discretion.

**Multilateral reporting frameworks — 3/9 active · 2 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | None | — |
| CARF | None | — |
| FATCA | None | — |
| MLI | In force | 2020 |
| BEPS | Signed | — |
| MAAC | In force | 2020 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**Bosnia and Herzegovina** sits on no major blacklist, though it's *outside* the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: PARTLY.
**Bosnia and Herzegovina** sits in the *middle band* of the RSF press-freedom index (rank **\#86**): civil society functions, but the walls are real and you'll learn fast where they stand.

Crypto lives in the standard regulated tier.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 86/180 | score 56 · ↓ 5 ranks year-on-year |

Central bank digital currency

NONE

no announced CBDC program · no pilot · no retail or wholesale prototype on record

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Bosnia and Herzegovina**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**4/11**), but for an online business this is swimming against the current.

**Accept payments — 2/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Bosnia & Herzegovina. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Montenegro ME  → ](https://stateless.sx/en/country/me) [   Moldova MD  → ](https://stateless.sx/en/country/md) [   Madagascar MG  → ](https://stateless.sx/en/country/mg)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   North Macedonia MK  → ](https://stateless.sx/en/country/mk) [   Armenia AM  → ](https://stateless.sx/en/country/am) [   Uzbekistan UZ  → ](https://stateless.sx/en/country/uz)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   Ghana GH  → ](https://stateless.sx/en/country/gh) [   Mozambique MZ  → ](https://stateless.sx/en/country/mz) [   Gabon GA  → ](https://stateless.sx/en/country/ga)