Opening a company in Bosnia and Herzegovina: locals, foreigners, freelancers and digital nomads

At a glance: d.o.o. with BAM 1,000 (about 511 euros) capital in the Federation or BAM 1 in Republika Srpska, court registration in 1 to 2 weeks, 10 percent corporate tax in all three jurisdictions, 17 percent state-wide VAT from BAM 100,000 (about 51,130 euros) turnover, no digital nomad visa. Legal forms. Company and direct tax law is entity law: the Federation (FBiH), Republika Srpska (RS) and Brcko District each have their own companies act, court register and tax administration; VAT, customs and excise are state level. Sole trader: craft (obrt) in FBiH, entrepreneur (preduzetnik) in RS. Limited company (drustvo sa ogranicenom odgovornoscu, d.o.o.): minimum capital BAM 1,000 (about 511 euros) in FBiH, paid in before filing; BAM 1 in RS. Joint-stock company (d.d. in FBiH, a.d. in RS): BAM 50,000 (about 25,565 euros). The mark is pegged at 1.95583 to the euro. Registration. FBiH: the municipal court (opcinski sud) of the seat registers the company on a founding act with notarised signatures; notary 150 to 300 marks, court fee 150 to 300, seal 30 to 70, agency 200 to 400 if used, so about BAM 330 to 900 (about 170 to 460 euros) excluding capital, 5 to 7 working days with an agent, then tax and statistics numbers, municipal business permit and VAT number at the Indirect Taxation Authority (UIO) if needed. RS: one-stop shop at APIF, which files with the district commercial court and bundles the tax and statistics numbers, decision in 3 to 5 days. Bookkeeper 100 to 300 marks a month. Taxes 2026. Corporate income tax 10 percent in FBiH, RS and Brcko. Dividends: FBiH withholds 5 percent on dividends to foreign companies and does not tax dividends of resident individuals; RS withholds 10 percent on dividends to non-resident companies; Brcko none; treaties reduce. VAT 17 percent, single rate; registration from BAM 100,000 (about 51,130 euros) taxable turnover in 12 months, raised from 50,000 in December 2023, voluntary below with a five-year lock-in. Personal income tax flat 10 percent in FBiH and Brcko, 8 percent in RS. Contributions in FBiH 31 percent employee and 5 percent employer since July 2025; in RS about 31 percent, all from the employee. Minimum net wage BAM 1,027 (about 525 euros) in FBiH, BAM 1,000 in RS. Freelancers and the self-employed. FBiH: register a craft (obrt) at the municipal economy department, then tax and health numbers; 10 percent on profit or a municipal lump sum for small crafts; contributions on at least the cantonal minimum base, roughly BAM 450 to 650 a month (about 230 to 330 euros). RS: entrepreneur (preduzetnik) registered through APIF; 8 percent on profit, or 2 percent of revenue for small entrepreneurs; contributions 31 percent on a chosen base, from about BAM 350 a month (about 180 euros). Unregistered income from foreign clients is declared as other income at the entity rate. Foreigners. 100 percent foreign ownership with national treatment; only arms production and public media are capped at 49 percent foreign share. No resident director rule, but a foreign director who works in the company needs a work permit from the entity employment service and then a temporary residence permit (one year, renewable) from the Service for Foreigners' Affairs; residence through own company requires an active company paying the founder at least the minimum wage. Registration works by power of attorney with apostilled, translated documents; banks want the director in person and take weeks for non-residents. Branch of a foreign company. A branch (podruznica) registers in the FBiH or RS court register (Brcko has no branch procedure) with the parent's extract, articles, resolution, representative appointment and apostilled translations; no capital, taxed as a permanent establishment at 10 percent with no remittance tax, though entity practice differs. A representative office (predstavnistvo) registers with the state Ministry of Foreign Trade and Economic Relations and may only promote and research. Most foreign groups form a d.o.o. subsidiary. Digital nomads. No digital nomad visa. EU, UK, US and most European citizens may stay 90 days in any 180 visa-free and remote work for foreign clients during that stay is not policed, but a longer stay needs temporary residence on another ground (own company, employment, family, property, study). From 183 days you are tax resident in your entity on worldwide income. The usual route is a d.o.o. that employs the founder with a work permit. Changed recently. VAT threshold doubled to BAM 100,000 (December 2023); EU accession negotiations opened (March 2024); FBiH Law on Contributions with 5 percent employer and 31 percent employee rates (July 2025); foreign digital-service providers must register for VAT through a tax representative (April 2025); FBiH minimum wage BAM 1,027 and RS wage bands by education (January 2026). Figures checked October 2026 from the Indirect Taxation Authority, the FBiH and RS tax administrations, APIF, PwC Worldwide Tax Summaries and Bosnian accounting firms; thresholds and fees change yearly. Confirm with a licensed adviser in Bosnia and Herzegovina before you file.