Individual - Foreign tax relief and tax treaties

Last reviewed - 26 February 2024

Foreign tax relief

The resident taxpayer who receives income from economic activities outside of Kosovo and who pays income tax on that income to any other state shall be allowed a tax credit under the PIT for the amount of income tax paid to such state that is attributable to the income generated from the other state.

The tax credit allowed is limited to the amount of foreign tax paid on the income earned outside Kosovo and shall not exceed the amount of obligatory tax in Kosovo on that same income. To the extent that Kosovo tax on that income exceeds the foreign tax paid, the excess amount must be included in the computation of Kosovo obligatory tax.

Tax treaties

Kosovo currently has DTTs in place with the following countries:

  • Albania
  • Austria
  • Belgium
  • Croatia
  • Finland
  • Germany
  • Hungary
  • Ireland
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • North Macedonia
  • Saudi Arabia
  • Slovenia
  • Switzerland
  • Turkey
  • United Arab Emirates (UAE)
  • United Kingdom (UK)

DTT agreements with Czech Republic, France, and Italy are not yet in force.