If you’re considering expansion to Kosovo, you’ll have to start thinking about payroll, hiring, benefits, and more. One of your first tasks is deciding on a Kosovo payroll option that fits your company’s activities, size, and commitment to Kosovo.
G-P makes it easy to expand to countries around the globe, including Kosovo. When you use our Kosovo EOR, we take on the complexities of processes like compliant payroll setup and management, so you can focus your time on growing your company.
Taxation rules in Kosovo
Following tax rules and regulations is an essential part of setting up the Kosovo payroll. The standard corporate tax rate in the state is 10%. Other taxes vary based on the industry of the employee, and taxpayers making up to EUR 30,000 can choose to pay tax on a gross income basis.
Kosovo uses a pay-as-you-earn (PAYE) system for personal income taxes, so you’re responsible for withholding taxes (pension contributions and salary tax) from employees’ wages and paying them on behalf of employees.
Kosovo payroll options for companies
Every company has different ways of operating, which is why you can choose between these 3 Kosovo payroll options:
- Internal: If you would rather run payroll out of your Kosovo subsidiary, you can as long as you have a large staff and a commitment to operating in Kosovo. If you don’t already have an expert in compliance and labor laws, you’ll need to hire one.
- Kosovo payroll processing company: Opting to outsource with a Kosovo payroll processing company will give you the freedom to focus on other tasks as you outsource your payroll, but you’ll still have to focus on remaining compliant with local laws.
- Employer of Record (EOR): Finally, you can opt for partnering with a EOR like G-P in Kosovo. G-P backs its platform with the largest team of HR and legal experts to ensure your payroll setup and management is compliant and accurate. That means you can focus on growing your global teams.
How to set up a payroll in Kosovo
Before you can set up your Kosovo payroll, you have to incorporate in the state. Establishing a legal entity will open the door to working in Kosovo, but it can take you a couple of months to complete the subsidiary setup process. Instead, partnering with G-P means we’ll act as the Employer of Record so you can start working without establishing your own subsidiary first.
Entitlement/termination terms
Entitlement and termination terms can vary by country or state, and Kosovo is no different. Knowing these terms inside and out before choosing a Kosovo payroll option can help you stay compliant and come to an agreement with your employees. You must give employees notice — the length of which depends on whether you have hired them via a definite or indefinite contract. Standard notice periods are:
- 7 days during the probation period (first 6 months).
- From 6 months to 2 years – 30 calendar days.
- From 2 to 10 years of employment – 45 calendar days.
- Above 10 years – 60 calendar days.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading global employment platform. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.