Page 31 - CEE Tax Guide 2025

Personal income tax /
Social security system

Resident taxpayers are taxed on income from
Kosovo and abroad, while non-residents are
taxed only on Kosovo-sourced income. Gross
income includes wages, rent, business activity,
interest, capital gains, and other income that
increases net worth. Taxpayers include individuals,
businesses, and companies. Personal Income Tax
is applied at progressive rates (0% to 10%) for the
calendar year.

The Kosovo Pension Savings Fund is responsible
for administering and managing individual pension
saving accounts. This fund obliges the employee
and the employer to contribute to financing the
employee’s pension at the rate of 5% from the
employee’s salary and 5% from the employer.

Wage related taxes in Kosovo Minimum wage Average wage in private sector
Exchange rate KZT/EUR 490 in EUR in EUR

350 500
Total wage cost 368 105.00% 525 105.00%
Contributions social 5% of gross salary 17.50 5.00% 25 5.00%
Gross Salary 350 100.00% 500 100.00%
Contributions social 5% of gross salary 17.50 5.00% 25 5.00%
Personal income tax 7 1.88% 19 3.70%
Net salary 326 93.00 456 91.00%

Teit Gjini
Managing Partner
Phone: +355 (0) 69 20 37 456
E-mail: teit.gjini@mazars.al

Central and Eastern European tax guide 2025 Forvis Mazars 31