Southern Europe · Europe

Bosnia and Herzegovina

51moderate

Overall Score

Bosnia and Herzegovina is a Southern Europe jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 10%.

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Corporate Tax

10%

Personal Income Tax

10%

Capital Gains

VAT / GST

17%

Overview

Key Data

Taxation

Personal Income Tax (max)10%

Personal Income Tax (min)10%

Corporate Tax Rate10%

Capital Gains Tax5%

VAT / GST17%

Dividend Tax Rate5%

Withholding Tax5%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesNo

Tax Residency Days183 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaNo

Golden VisaNo

Retirement VisaNo

Investment VisaNo

EU MemberNo

Schengen AreaNo

EU PassportNo

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index28/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easemoderate

Internet Qualitymoderate

Compliance & Reputation

FATF Statusgrey_list

EU Blacklist Statusnot_listed

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in Bosnia and Herzegovina is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

Flat 10% income and corporate tax. Very low cost of living. Complex dual-entity administrative structure. FATF grey list — banking restrictions. EU candidate status.

Company Setup & Business Taxation

The standard corporate income tax rate is 10%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking & Financial Access

Banking access in Bosnia and Herzegovina is attainable but may require more documentation and time than in simpler jurisdictions. Internet infrastructure is developing. Speed and reliability can vary by location and should be assessed for business-critical operations.

Compliance & International Reputation

Bosnia and Herzegovina is currently on the FATF grey list, indicating enhanced monitoring by the international AML/CFT body. This may affect banking relationships and counterparty due diligence requirements. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, Bosnia and Herzegovina ranks highest for Freelancer and Founder / Entrepreneur. It offers a reasonable proposition for freelancer (score: 53/100). It offers a reasonable proposition for founder / entrepreneur (score: 52/100). It scores lower for high net worth individual, who may find other jurisdictions more suitable for their specific requirements.

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.