The entrepreneurial landscape is undergoing a global makeover and is consequently seeing high-profile names having to make room at the Investment table for a number of high-potential newcomers that are jostling for a seat. One such new face beginning to elbow its way up the economic ladder is a sleepy country across the Adriatic called Bosnia and Herzegovina. That said, here are a couple of reasons why the country is on its way to being a business force to reckon with.
1) An affordable workforce and plenty of natural resources.
The nation’s quality labor force is rivaling majority of its continental counterparts in terms of sustainability as its average monthly wage sits at an extremely decent $685 and this is reeling in new startups almost by the day. Moreover, BiH is overflowing with natural treasures, of which forested areas make up 50%, and free industrial space complemented by affordable manufacturing costs.
2) An advantageous geo-economic position
The country is sat in the midst of prospering nations such as Croatia and Hungary and it enjoys a great rapport with its neighbors which has resulted in preferential status and even duty-free trading with most of its counterparts and many other major nations throughout Europe. Moreover, EU regulations in BiH aren’t as tight as in many other EU member states while its advantageous geo-economic location has opened the doors to major markets in the region thanks to the CEFTA (Central European Free Trade Agreement) that it assented to not too long ago.
3) A favorable legislation that treats foreigners like citizens
Arguably the most enticing incentive to investors is the country’s renowned legislation that affords foreign investors the same obligations and privileges as ordinary citizens. These laws encompass employment advantages- such as being able to employ foreign nationals at will in line with immigration laws- and real estate ownership benefits that avail all the benefits and rights among many others. The foreign investment sector is also adeptly protected from requisition, expropriation and nationalization.
4) The financial sector looks promising and is fairly stable
One of the reasons for its enviable financial position is the country’s direct ties to the Euros which has seen the development of a very stable currency that gives some of the big nations a run for their money in this regard. BiH’s Central Bank is also partly to blame for its success as it offers foreign transactions involving freely convertible funds under a flat charge of €0.51229 for a single native unit.
5) A Convenient tax system
With an inviting VAT charge set at just 17%, you’ll be hard-pressed to find any other countries in the European business directory that set the tax bar any lower than that. The corporate tax rates are also just as favorable at only 10% and all in all what this means is that entrepreneurs get more of the profit pie unlike in some other states where local governments demand a staggering sum that is almost half the revenue.
A recent study indicates that 8 out of 10 investors who tried their luck in Bosnia and Herzegovina are in a hurry to reinvest their returns in the same nation and it’s not hard to see why. The county is on the up and things are only going to get better in the years to come.