·     ESTABLISHED FOREIGN INVESTORS SUPPORT FOUND. In order to encourage foreign investors
      and contribute to the predictable business environment the Council of Ministers established
      the Foreign Investors Supports Fund in 2007 as a financial incentive for investors.

·     The Law on the Policy of Foreign Direct Investments of Bosnia and Herzegovina 
      (Official Gazette of BiH, 17/98, 13/03) ensures national treatment of foreign investors, i.e,
      foreign investors have the same rights and obligations as residents of BiH.

·     Foreign investors are entitled to open accounts in any commercial bank in domestic and/or
      any freely convertible currency on the territory of BiH.

·     Foreign investors are entitled to freely employ foreign nationals, subject to the labour and
      immigration laws in BiH.

·     Foreign investors are protected against nationalization, expropriation, requisition or measures
      having similar effects; such measures may take place only in the public interest in accordance
      with the applicable laws and regulations and against the payment of an appropriate
      compensation, i.e. compensation that is adequate, effective and prompt.

·     Investment capital is exempt from paying import customs and customs duties (with the
      exception of passenger cars, slot and gambling machines).
      In order to enjoy this benefit, the foreign investor should submit a written request for
      exemption from paying import duties to the competent customs authority (according tothe
      place of seat of the company) along with the following documents: 

            - contract or other relevant document about the investment on the basis of which the
              equipment is being imported, 
            - proof of registration of the investment at the competent authority, 
            - equipment of specification with tariff number, tariff mark (with quantity indication),
              single and total value, certified by the investor, 
            - statement of the investor that the equipment is not older than 10 year age limit, 
            - certificate of the competent institution confirming that the imported equipment complies
              with the environmental and employment protection standards. 

      The Customs Office issues a decision within 15 days upon submission of the request.

·     The rights and benefits of foreign investors granted and obligations imposed by the
      Law on the Policy of Foreign Direct Investment (mentioned above) cannot be
      terminated or overruled by subsequent laws and regulations. Should a subsequent law or
      regulation be more favorable to foreign investors, the investor will have the right to choose
      the regime by which the investment will be regulated.

·     Foreign investors may own real estate in BiH. Foreign investors enjoy the same property
      rights in respect to real estate as BiH citizens and legal entities.

·     Foreign investors are entitled to transfer abroad, freely and without delay, in convertible
      currency, proceeds resulting from their investment in BiH.

·     Free trade zones in BiH are part of the customs territory of BiH and have status of legal entity.
      According to the Law on Free Trade Zones, free trade zone founders may be one or more
      domestic and foreign legal entities registered in BiH. The users of free zone do not pay VAT
      and import customs for manufacturing equipment. Investment in the free zone, transfer
      of profit and transfer of investment are free of charge. The free zone establishment is
      considered economically justified if the submitted feasibility study and other evidence can
      prove that the value of goods exported from a free zone will exceed at least 50% of the total
      value of manufactured goods leaving the free zone within the period of 12 months.

·     Tax exemptions. The Federation Law on the Corporate Income Tax enables the taxpayer,
      who in the year for which the corporate income tax is being determined, has achieved 30% of
      their total revenue by export to be exempted from the tax payment for that year. 
      Taxpayer who in the period of five consequent years invests into production in the value
      of minimum 20 million KM, on the territory of the Federation of Bosnia and
      Herzegovina, is being exempted from the payment of corporate income tax for the period
      of five years beginning from the first investment year, in which minimum four million KM
      must be invested. 
      If taxpayer from the above paragraph, in the time period of five years, does not achieve
      the prescribed census for investment, they lose the right of tax exemption, and the unpaid
      corporate income tax is being determined in accordance with the provisions of the Law on the
      Corporate Income Tax augmented for penalty interest payable for untimely paid
      public revenues.
 
In the Federation of BiH, taxpayer who employs more than 50% of disabled persons and persons with special needs longer than one year is being exempted from the payment of corporate income tax for the year in which more than 50% disabled persons and persons with special needs were employed.
 
FDI insurance instruments in Bosnia and Herzegovina
 

Foreign investors concerned about risks of transfer restrictions, expropriation, war and civil disturbances and denial of justice, can be insured against these risks with the European Union Investment Guarantee Trust Fund for Bosnia and Herzegovina, administered by the Multilateral Investment Guarantee Agency (MIGA, member of the World Bank Group).
 
BiH is eligible for assistance from the US Overseas Private Investment Corporation (OPIC), which also provides political risk insurance for investors.

For more informations please look at:FIPA