Bosnia and Herzegovina

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.

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 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.

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.

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.