Kosovo, 60 million euros in tax evasion in 6 months - Problems, construction, wholesale trade, hospitality and some services

In the first half of 2026, the Kosovo Tax Administration carried out around 1,015 audits, where around 60 million euros in tax evasion were identified. Among the sectors considered most problematic for tax evasion are construction, wholesale trade, hospitality and several other services.
During this period, about 2,500 fines were imposed, or about 8 percent less than in the same period last year.
Tax evasion is a major problem for Kosovo, and institutions do not have any assessment of the level of this phenomenon. The existing assessments were made by international institutions and date from the 2019-2020 period, when tax evasion was estimated at 25 to 35 percent of Gross Domestic Product (GDP).
Based on a GDP of over 10 billion euros, even just 25 percent would constitute about a quarter of this value.
The Kosovo Tax Administration is also conducting audits in the four Serb-majority municipalities in northern Kosovo - North Mitrovica, Zvecan, Zubin Potok and Leposaviq. This year alone, around 230 new businesses have been registered in these areas, with a turnover of around two million euros.
Another major concern for the Kosovo Tax Administration remains business debt. Around 800 million euros is the total debt that businesses have had since the end of the war in Kosovo in 1999. Tax collectors aim to collect around 1.2 billion euros in revenue by the end of the year, compared to one billion euros last year.
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