Bosnia & Herzegovina

Last update: 2026-05-14
BA BAMKM 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.
Personal income
10%
flat
Corporate
10%
flat
Capital gains
10%
flat
VAT (standard)
17%
standard rate
i 7.2 VERY LOW TAX
i 4.2 PRIVACY GRADE
i 2.4 HOLDING
i 2.1 DIVIDEND PIPELINE
i 2 CRYPTO HAVEN
i 2 EASY CITIZENSHIP
VERYLOW TAX 7.2/10 HOLDING 2.4/10 DIVIDENDPIPELINE 2.1/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 4.2/10 EASYCITIZENSHIP 2/10
01/08

Will Bosnia & Herzegovina tax what you earn?

income tax tax residency territorial system

YES, BUT LIGHTLY. Bosnia & Herzegovina taxes personal income lightly (top rate 10%), and the residency test stays out of your way. Lisible pressure, no ambush.

Personal income taxi
10%
flat rate
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
Tax residence testi
183days
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will Bosnia & Herzegovina tax what you own?

capital gains wealth tax inheritance dividends interest

YES, BUT LIGHTLY. Capital gains are taxed at a low 10% in Bosnia & Herzegovina, but the country also applies an annual wealth tax (top rate 0.2%). Over a long holding period, the recurring charge can outweigh the realisation tax entirely.

Capital gainsi
10%
flat
Dividend taxi
10%
flat
Interest incomei
10%
flat
Wealth taxi
0.2%
flat
Crypto · tax regimei
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-cryptoi
TAXABLE
each swap counts as a disposal — gains realised at every trade
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
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.
03/08

Is it easy to run a company in Bosnia & Herzegovina?

corporate tax criminal liability public registry VAT IP box

YES. Corporate tax in Bosnia & Herzegovina is low (10%), and that's where the good news ends. The country treats misuse of corporate assets as a criminal offense (intra-company spending can trigger prosecution, even as sole shareholder; your own consent doesn't waive the offense) and runs public corporate registries (your name as shareholder is queryable by anyone with a browser). Cheap to operate; exposed legally and reputationally. The rate is a distraction from the real friction.

Corporate taxi
10%
flat
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
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 privacyi
PUBLIC
Registers of Business Entities in Bosnia and Herzegovina
Directors privacyi
PUBLIC
Registers of Business Entities in Bosnia and Herzegovina
Incorporation costi
Limited Liability Company
Društvo sa ograničenom odgovornošću
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
VAT standard ratei
17%
single rate · no reduced tiers
17%
Food & drink
17%
food
17%
non-alcoholic
17%
alcohol
Print media
17%
books
17%
ebooks
17%
newspapers
Culture
17%
cultural events
17%
cinema
17%
theatre
17%
museums
17%
sports
Transport
17%
public transit
17%
rail
17%
air
Hospitality
17%
hotels
17%
restaurants
17%
takeaway
Health
17%
pharma
17%
medical dev.
Energy
17%
electricity
17%
natural gas
17%
district heat.
17%
domestic fuel
Utilities
17%
water
17%
waste
Clothing
17%
kids clothing
Digital & telecom
17%
digital
17%
telecom
17%
broadcast
Construction
17%
construction
17%
social housing
Agriculture
17%
farm inputs
17%
animal feed
Personal services
17%
funeral
17%
hairdressing
04/08

Is Bosnia & Herzegovina good for your holding company?

treaty network participation exemption withholding

NO. Bosnia & Herzegovina doesn't carry a treaty network, which makes it unsuitable as a holding jurisdiction. Any dividend flowing in or out faces full statutory withholding, and no domestic participation exemption can compensate for missing relief on the source side.

Territorial systemi
Individuals
WORLDWIDE
Corporates
WORLDWIDE
Individuals: worldwide income taxation regardless of source. Corporates: worldwide.
Participation exemptioni
NONE
no dividend participation exemption regime
CFC rulesi
NONE
no controlled foreign corporation regime · foreign-source corporate income out of scope
WHT · dividendsi
5%
non-resident outbound
WHT · interest
10%
non-resident outbound
WHT · royalties
10%
non-resident outbound
Tax-haven WHT
no punitive rate on record
Treaties signedi
0
active
Treaties pending
in negotiation
Tax treaty networki
origin · BA 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with BA.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Bosnia & Herzegovina?

exit tax territorial system dual citizenship

SOME. Bosnia & Herzegovina taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
FORBIDDEN
naturalisation requires renouncing existing citizenship
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Bosnia & Herzegovina protect your privacy?

info exchange corporate registries

PARTLY. Bosnia & Herzegovina has signed most of the standard exchange frameworks and operates a public corporate registry. Financial accounts are reported to your home tax authority, and your shareholdings are visible to anyone. Privacy is shallow on both axes.

Multilateral reporting frameworks 3/10 active · 2 pending
CRS
CARF
FATCA
MLI
2020
BEPS
MAAC
2020
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is Bosnia & Herzegovina itself a liability?

blacklists FATF standing

NO. Bosnia & Herzegovina carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.

Blacklist exposure Clear everywhere
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Bosnia & Herzegovina?

press freedom crypto CBDC EU

PARTLY. Bosnia & Herzegovina scores in the middle band of the RSF press-freedom index (rank #86): civil society operates but the boundaries are real. Crypto sits in the standard regulated tier.

Press freedom · RSF indexi
86/180
score 56 · ↓ 5 ranks year-on-year
Central bank digital currencyi
NONE
no announced CBDC program · no pilot · no retail or wholesale prototype on record
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.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.