Europe · BAM
Bosnia and Herzegovina
Reviewed 2026-06-21
Top income tax
10%
Self-employed SS
Yes
VAT
17%
Capital gains
10%
Exit tax
No
Nomad visa
No
63
/ 100
Tax efficiency57
Ease to enter50
Ease to exit93
Cost of living89
Internet8
English60
Bosnia and Herzegovina splits its tax powers between two entities, so the headline rates differ by where you settle. The Federation of BiH and Brcko District apply a flat 10 percent personal and corporate income tax, while Republika Srpska uses a flat 8 percent personal rate with a 10 percent corporate rate, and VAT is a uniform 17 percent nationwide. Social contributions are heavy for the self-employed, there is no wealth, inheritance, or exit tax, and there is no formal digital nomad visa, though foreigners can gain temporary residence by registering a local business.
Personal income tax
Income tax structureFlat
Top income tax rate10%
Entry income tax rate10%
Taxation basisWorldwide
Local/state income taxYes
Social security
Self-employed social securityYes
Employee SS rate31%
Employer SS rate5%
Indirect & other taxes
VAT standard rate17%
Capital gains rate10%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate10%
WHT on dividends5%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaYes
Ease of setup2 / 5
Lifestyle
Cost of living index33
Internet speed45 Mbps
English proficiencyMedium
Civil liberties62
Sources
- PwC Worldwide Tax Summaries — Bosnia and Herzegovina, Individual, Taxes on personal income
- PwC Worldwide Tax Summaries — Bosnia and Herzegovina, Individual, Other taxes (social security and VAT)
- PwC Worldwide Tax Summaries — Bosnia and Herzegovina, Corporate, Taxes on corporate income
- PwC Worldwide Tax Summaries — Bosnia and Herzegovina, Corporate, Withholding taxes
- Numbeo — Cost of Living in Bosnia And Herzegovina
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.