Investor protection

National treatment of foreign investors

The Law on Foreign Investments in the Republic of Srpska (Official Gazette of the Republic of Srpska, No. 21/18) is one of the most liberal ones and ensures that:

  • free trade area
    A foreign investor has the same rights and obligations as domestic investors
  • free trade area
    A foreign investor may establish a business entity under the same conditions that apply to domestic investors. The only restriction exists for the military industry sector (production of weapons, ammunition, explosives for military use) and media affairs. However, in these sectors, investment is possible up to 49% of the capital value, and above it, with the consent of the Government of Republic of Srpska. Investment in all other sectors is free
  • free trade area
    A foreign investor can acquire ownership of real estate in accordance with the regulations on real rights (i.e. on the basis of reciprocity)
  • free trade area
    Foreign investment is exempt from customs duties and obligations in accordance with the provisions of the law governing customs policy in BiH
  • free trade area
    A foreign investor has the right to open an account for the purpose of investing in the territory of the Republic of Srpska, in any commercial bank, in domestic or any other free convertible currency
  • free trade area
    A foreign investor has the right to employ workers from abroad without restrictions, unless otherwise determined by special regulations governing the areas of work and employment of foreign persons, if there are no such workers on the domestic labor market.
  • free trade area
    It is guaranteed to the foreign investor that his investments will not be expropriated or subject to measures with similar consequences, except in exceptional cases, when it is in the public interest and in accordance with laws and other regulations, which also apply to domestic investment.
  • free trade area
    A foreign investor has the right to transfer funds arising as a result of his investment in the Republic of Srpska, without restrictions, in any free convertible currency with prior settlement of all tax and other legally prescribed obligations based on public revenues in the Republic of Srpska.

Risk protection

  • free trade area
    Foreign investors concerned about restrictions on profit transfer, expropriation, war and civil unrest, and denial of justice can insure themselves against these risks with the Multilateral Investment Guarantee Agency (MIGA, part of the World Bank Group).
  • free trade area
    US Overseas Private Investment (OPIC) also provides political risk insurance to investors when investing in RS

Investment protection agreements

BiH has signed agreements on investment promotion and protection with the following countries: Albania, Austria, Belgium and Luxembourg, Belarus, Montenegro, Czech Republic, Denmark, Egypt, Finland, France, Greece, Netherlands, Croatia, India, Iran, Italy, Canada, Qatar, China, Kuwait, Lithuania, Hungary, Macedonia, Malaysia, Moldova, Germany, Pakistan, Portugal, Romania, San Marino, Slovakia, Serbia, Slovenia, Spain, Switzerland, Sweden, Turkey, Ukraine, United Kingdom, Jordan, OPIC and OPEC countries.