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Kosovo Payroll Services & Solutions

Horizons will simplify and expedite your payroll management in Kosovo

Setting up and managing a payroll in Kosovo

If you are planning an expansion into Kosovo, an important step will be hiring and paying employees locally. While this is a good way to access local talent and ensure you have a well-prepared workforce, it can be difficult to follow the nation’s laws, its languages, and its unique administrative processes.

At Horizons, we specialize in helping organizations spanning all industries expand internationally, including into Kosovo. We can handle your payroll setup and management, even if you don’t have a legal entity in Kosovo.

Why choose the Horizons payroll solution?

If you have an entity

Have you already registered an entity in Kosovo? Our payroll experts can take care of all of your payroll setup and management, helping you employ a workforce in Kosovo in compliance with local employment laws and managing your ongoing HR, contracts, and more.

This service is ideal for larger organizations and those who have already registered a presence in Kosovo but are looking to streamline their expansion.

If you don’t have an entity

For organizations that have not already registered an entity in Kosovo, we offer our standard payroll outsourcing service with the added use of our Kosovo subsidiary. Our subsidiary will act as employer of record for your local workforce, meaning you won’t have to go through the long and cumbersome process of registering a legal entity in Kosovo.

This service provides a low-risk, flexible, and scalable option for organizations interested in expanding into Kosovo.

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Kosovo payroll guide

What are the tax and withholding rules in Kosovo?

Income tax in Kosovo is progressive, with employees needing to pay a higher percentage of earning at higher income levels. The rates range from 0% to 10%.

Contractual rights and termination regulations

For definite-term contracts, employees in Kosovo are entitled to 30 days of notice prior to termination. For indefinite-term contracts, notice depends on length of service. For employees of six month to two years, the notice period is 30 days. For employees with two to ten years of service, the notice period rises to 45 days, and for those with over ten years of service it is 60 days.

Severance payments may be required in the case of mass dismissals where 10% or more of a company’s workforce (at least 20 people) are terminated. The mandatory severance depends om each employee’s length of service and ranges from one month to seven months of salary.

How to establish a payroll in Kosovo

Any organization trying to establish a payroll and hire staff in Kosovo will generally need to establish a legal entity in the country and follow the country’s unique administrative procedures. However, this process can take longer than expected, as you will need to closely follow Kosovo’s unique and often confusing business laws.

An alternative is to outsource your payroll setup and management to Horizons. Our experts can offer the use of our Kosovan subsidiary to act as employer of record for your employees in Kosovo, so you can avoid the complex setup and management process, and can benefit from our solutions even if you don’t have a legal entity in Kosovo. Additionally, we can set up and run your payroll, HR, compliance, and any other associated work, allowing you to work on successfully expanding your businesses in Kosovo.

Manage payroll in Kosovo

Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.