Ibrahimovic & Co has advised Bimal on real estate plot acquisition via a special arrangement with the Government of Brcko District, Bosnia and Herzegovina.

Bosnia and Herzegovina (BiH) is a country in the south-east of Europe (the so-called “Balkan region”) with an area of 51,229 square kilometers. In accordance with its political and legal structure, BiH is divided into two entities (the Federation of Bosnia and Herzegovina – FBIH – and Republika Srpska – RS) and the Brcko District (BD BIH). The real estate market is a significant part of the economic activity of BiH and is governed by a set of legal regulations which follow international standards for the protection of property rights. In the course of 2022 and 2023, there was a strong investment wave in the real estate market.

Ibrahimovic & Co has launched a German Desk to support companies wishing to establish, expand, or consolidate their activities in German-speaking countries. The German Desk will be co-led by Partner Nadin Kantic and Attorney at Law Tomislav Tomas.

The first thing that comes to mind when discussing the tax system in Bosnia and Herzegovina is the complexity of the regulations governing the practical implementation of tax laws. This complexity stems from constitutional provisions that regulate the jurisdiction of institutions at the level of Bosnia and Herzegovina, entities, or even cantonal authorities. Therefore, for a better understanding, it is essential to make a clear distinction between direct taxes (income of individuals, profit of legal entities, property) and indirect taxes (VAT, excise taxes).

The need for management contracts arises when an employer needs to arrange for a relationship beyond that of one with a simple employee – one with an individual performing managerial or supervisory tasks. Therefore, the relevant labor laws (in the Federation of Bosnia & Herzegovina, Republika Srpska, and Brcko District of Bosnia & Herzegovina) introduce management contracts that offer an alternative for the employer to conclude an agreement with a manager without establishing actual employment. The aim is for a more flexible arrangement of said business relationship or established employment which is absolutely subject to the provisions of the relevant labor laws.

Bosnia and Herzegovina (B&H) is located in the so-called "Western Balkans" region, borders the EU, and has an area of 51,209 km2. Its highly favorable geographical location for harnessing energy potentials has positioned B&H as the only country in the surrounding area with a significant surplus in exporting electrical energy. The water potential is represented by a large number of rivers suitable for building hydroelectric power plants, and substantial potential exists in the areas of wind energy (due to the position of the Dinaric mountain range) and solar energy (averaging over 2000 sunny hours per year).

In accordance with the Law on Foreign Direct Investment Policy in Bosnia and Herzegovina, foreign investors are guaranteed the following:

A brief overview of value added tax and direct tax in Bosnia and Herzegovina, including specifics for direct tax in Federation of B&H, Republic of Srpska, and Brcko District of Bosnia and Herzegovina.

The banking system of Bosnia and Herzegovina incorporates the Central Bank of Bosnia and Herzegovina, commercial banks, and other financial institutions. The Central Bank defines and controls the implementation of the monetary policy of Bosnia and Herzegovina, and assists and maintains appropriate payment and accounting systems. It also coordinates the activities of the banking agencies of the B&H entities (hereinafter: regulators), which are responsible for issuing licenses for the operation and supervision of banks.

In the complex administrative apparatus and historical diversity of Bosnia and Herzegovina, a complex system of Real Estate Registries was developed. What does a buyer need to know in order to protect themselves from the risks that can arise in the purchase of real estate?

Contributed by Ibrahimovic & Co.