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Kosovo eyes Hungarian investors and travellers in 2026: Exclusive interview with Ambassador Delfin Pllana
On the 18th anniversary of Kosovo’s independence, Ambassador Delfin Pllana says the country is positioning itself as one of the Western Balkans’ most attractive destinations for Hungarian investors and travellers alike. In an interview with Daily News Hungary, he highlights Kosovo’s low taxes, young and multilingual workforce, expanding renewable energy and ICT sectors, and growing tourism appeal, while stressing that closer economic, educational and political ties could bring mutual benefits to both nations.
Table of contents
Daily News Hungary: Kosovo is often described as one of the most promising investment destinations in the Western Balkans. What do you see as the country’s main advantages for foreign investors, including those from Hungary?
Delfin Pllana: Let me begin by stating that I see Kosovo’s attractiveness as an investment destination as being grounded in our ability to combine highly competitive operating conditions with strong regional and international market access. From my perspective, this positions Kosovo as a natural platform for joint ventures and strategic partnerships with European investors, including companies from Hungary.
From a macroeconomic standpoint, I can confidently say that Kosovo has demonstrated remarkable resilience and steady growth in recent years. I regularly emphasise that our well-capitalised and stable banking sector, combined with low levels of public debt and prudent fiscal management, has significantly contributed to macroeconomic stability and investor confidence. The use of the euro further strengthens our appeal, as it eliminates currency risk, reduces transaction costs and aligns our financial system closely with EU standards – an important consideration for Hungarian and other EU-based investors.
I consider market access to be one of Kosovo’s most significant advantages. Through our participation in CEFTA, the EU Stabilisation and Association Agreement, and preferential trade arrangements with the United States, Turkey, EFTA countries, and Japan, companies operating in Kosovo enjoy tariff-free or preferential access to a wide range of markets. For Hungarian investors, I see particularly attractive opportunities to establish joint production, processing, or service operations that combine Hungarian capital, technology, and managerial expertise with Kosovo’s competitive cost structure and export-oriented framework.
A central pillar of Kosovo’s investment attractiveness, in my view, is our human capital. Kosovo has one of the youngest populations in Europe, with approximately 70% of our population under the age of 30. I consistently underline that this workforce is adaptable, increasingly well educated, multilingual and technologically proficient. Strong command of English and German, together with expanding technical and vocational training, supports collaborative business models in manufacturing, ICT, business services, and agribusiness.
For Hungarian companies, joint ventures with local partners can provide access to a motivated labour force while enabling Kosovar firms to integrate into regional and European value chains through technology transfer and skills development. From the perspective of economic diplomacy, I see our human capital as a key asset supporting small-state competitiveness strategies, particularly in knowledge-intensive exports, digital services, and sector-specific foreign investment.
This favourable environment is reinforced by what I regard as a liberal and investor-friendly legal framework. Kosovo offers a flat 10% corporate and personal income tax, full foreign ownership, unrestricted profit repatriation, and transparent investment protection laws aligned with EU norms. Business registration procedures are streamlined, and ongoing regulatory reforms continue to improve predictability and legal certainty – factors I consider essential for long-term investment and sustainable joint ventures.
I would also emphasise that Kosovo’s business climate is strengthened by its resource base and institutional integration. We possess significant natural resources, including some of the largest lignite reserves in Europe, alongside growing potential in renewable energy, mining, and construction materials. At the same time, Kosovo is integrated into major international and regional economic frameworks, having joined or partnered with institutions such as the World Bank and the IMF, the European Bank for Reconstruction and Development, the Council of Europe Development Bank, and the European Union through the Stabilisation and Association Agreement.
Taken together, I firmly believe these factors position Kosovo as a competitive, outward-oriented, and partnership-driven investment destination. For Hungarian investors in particular, Kosovo offers a compelling combination of macroeconomic stability, market access, human capital, and regulatory openness. In my view, this creates strong foundations for joint ventures that can generate mutual benefits, support regional integration, and contribute to sustainable economic growth across the Western Balkans.
DNH: In which sectors do you see the greatest opportunities for Hungarian–Kosovar joint ventures and investments?
Delfin Pllana: I see Kosovo as offering a wide array of sectors where joint ventures with Hungarian companies can generate substantial mutual benefits by combining complementary strengths in technology, capital, human resources, and market access. Kosovo has a very competitive labour force, valuable natural resources, a strategic location and a strong export-oriented framework. I am confident that when these advantages are paired with Hungary’s technological expertise, management experience and EU market connectivity, they create an environment conducive to productive collaboration and mutual gain.
In the energy sector, I see particularly compelling opportunities in renewable energy, district heating, energy efficiency and grid modernisation. Hungarian companies, with their extensive experience in EU-funded green projects, energy technologies, and financing mechanisms, can partner effectively with Kosovar firms. These partnerships benefit from Kosovo’s strong demand for sustainable energy solutions, accessible project sites, and supportive policy frameworks. I believe such collaborations not only contribute to the Western Balkans’ green transition but also reinforce the role of both countries in energy innovation and diversification.
The ICT and digital services sector is, in my view, one of Kosovo’s highest-potential areas for joint ventures. Software development, fintech, cybersecurity, gaming, digital marketing, and business process outsourcing can leverage Kosovo’s young and multilingual workforce alongside Hungary’s access to European clients and capital markets. With one of the youngest populations in Europe and high internet penetration, Kosovo has developed a strong ICT ecosystem, supported by a growing number of companies and a highly connected diaspora.
I see export-oriented digital services as a way for Kosovo to engage globally without requiring large-scale domestic industrial capacity, while Hungarian partners gain access to cost-efficient, highly skilled teams capable of serving EU and international markets. These collaborative initiatives enhance Kosovo’s reputation for innovation and strengthen our international economic profile.
I also see strong opportunities in manufacturing sectors such as metal processing, automotive components, furniture, construction materials, plastics and textiles. Joint ventures in these fields can merge Hungarian technological know-how and quality standards with Kosovo’s competitive labour costs and export potential. These industries benefit from Kosovo’s proximity to EU markets and integration into regional trade agreements, creating a strategic platform for both production and distribution across the Western Balkans.
Kosovo’s agricultural and agribusiness sector is another area I consider particularly promising. Food processing, cold storage, seed production, irrigation systems, dairy and meat processing, and organic farming can all benefit from partnerships with Hungarian firms. Hungarian expertise in agricultural technology, mechanisation and EU-compliant food safety standards can enhance productivity, quality, and export readiness while fostering meaningful knowledge transfer to local producers. I see this collaboration as strengthening Kosovo’s position in regional and international trade networks.
The construction and infrastructure sector remains a major driver of Kosovo’s economic growth. Joint ventures in residential, commercial, and infrastructure development can improve connectivity and trade facilitation within Kosovo and across the region. I believe Hungarian companies can benefit from stable investment opportunities while supporting Kosovo’s regulatory credibility and capacity to implement complex projects, thereby reinforcing investor confidence.
Labour-intensive industries, including textiles, also offer further possibilities. Kosovo’s textile sector, characterised by strong female workforce participation and an export-oriented structure, provides Hungarian partners with opportunities to enhance quality, introduce EU-compliant production standards, and integrate products into broader European supply chains. I see these ventures as contributing to inclusive employment and regional trade expansion.
Kosovo’s wood-processing and furniture industries are also sectors with significant collaborative potential. Our abundant forestry resources and tradition of artisanal skills support a growing export-oriented industry. Hungarian–Kosovar joint ventures in furniture production and woodcraft can capitalise on cost-effective labour, traditional expertise, and access to niche European markets. In my view, these projects enhance Kosovo’s economic diplomacy by presenting the country as a reliable and innovative trade partner while promoting sustainable and value-added production.
Finally, I would note that emerging areas such as logistics, healthcare and pharmaceuticals, vocational training, waste management, and water infrastructure also offer strategic opportunities for cooperation. These sectors can benefit from Hungary’s technical expertise and EU market knowledge while enabling Kosovo to build capacity and integrate more fully into regional and international markets.
Overall, I am convinced that Kosovo’s young and skilled workforce, liberal investment framework, strategic location, and export-oriented market access make it an exceptionally promising destination for Hungarian investors. Joint ventures across energy, ICT, manufacturing, agribusiness, construction, textiles, and wood processing can generate mutual gains and strengthen bilateral economic ties, regional stability, and Kosovo’s integration into European-aligned economic networks.
DNH: What support or guarantees does the Kosovar government provide for foreign investors and joint ventures?
Delfin Pllana: I can state with confidence that Kosovo offers a highly supportive, transparent, and predictable framework designed to attract and safeguard both domestic and foreign investment. From my perspective, this makes Kosovo one of the most promising destinations for joint ventures in the Western Balkans. The Kosovar government has established a business-friendly legal and fiscal environment that ensures security, legal certainty, and ease of operation for investors.
I frequently underline that our tax system is among the most competitive in the region. Corporate income tax is set at a flat rate of 10%, while value-added tax is 18% for standard goods and services but fully exempted for exports, providing a strong incentive for export-oriented joint ventures. Personal income tax rates are progressive, ranging from 0% to 10%, and social security contributions are capped at a total of 10%, equally shared between employers and employees. Customs duties range from 0% to 10%, with exemptions for most capital goods and raw materials, significantly reducing entry costs for foreign investors.
From a legal standpoint, I emphasise that Kosovo’s investment framework is fully aligned with EU standards and offers robust protections for foreign investors. Laws such as Law No. 04/L-220 guarantee equal treatment for domestic and foreign investors, protect property rights, and safeguard against expropriation. I consistently assure our partners that Kosovo allows 100% foreign ownership, unrestricted movement of capital and profits, and full recognition of international arbitration mechanisms. In my experience, these guarantees are essential for long-term and complex joint ventures, particularly those involving European partners. Specialised commercial courts further ensure that business disputes are resolved efficiently, reinforcing Kosovo’s credibility as a reliable investment destination.
Beyond legal protections, I see Kosovo as offering a range of fiscal and operational incentives tailored to joint ventures and strategic investments. Free Economic Zones provide VAT and customs exemptions, simplified administrative procedures, and ready-to-use infrastructure, making them particularly attractive for manufacturing, logistics, and technology-driven projects. The Kosovo Investment and Enterprise Support Agency (KIESA) plays a central role in facilitating investment, and I regularly highlight its work in helping foreign companies identify reliable local partners, obtain permits, and navigate both central and municipal procedures. In many cases, local authorities proactively support investment projects by offering land, infrastructure, and targeted assistance, especially for initiatives that create employment, boost exports, and enable technology transfer.
Taken together, I believe these measures create an environment in which Hungarian companies and other international investors can confidently establish joint ventures that leverage Kosovo’s competitive labour force, strategic location and EU-aligned regulatory system. The government’s active role as a facilitator, combined with clear legal protections and incentives, positions Kosovo not only as a safe and predictable business destination but also as a committed long-term partner for regional economic integration and sustainable growth.
DNH: What can Kosovo offer Hungarian travellers as a tourist destination?
Delfin Pllana: I am truly convinced that Kosovo can offer Hungarian travellers an extraordinary and enriching tourism experience. In my view, Kosovo successfully combines rich cultural heritage, striking natural landscapes, vibrant urban life, and a rapidly emerging culinary scene. As a compact, rather small in size and easily accessible country, Kosovo allows visitors to experience authenticity, diversity and hospitality within short distances. I often describe Kosovo as an ideal destination for cultural explorers, hikers, gastronomy enthusiasts and travellers interested in discovering emerging European destinations beyond the mainstream tourist routes.
Prizren, which is considered the cultural capital of Kosovo, is a destination I always recommend first. Its historic old town features an exceptional concentration of Ottoman-era architecture, churches, mosques and historic bridges. At the same time, Prizren is a living cultural hub, hosting internationally recognised events such as Dokufest and the Autostrada Biennale, which add a contemporary and creative dimension to the city. Culinary experiences are central to Prizren’s appeal. Visitors can enjoy local specialities such as flija, sarma, artisanal cheeses and freshly baked pastries, complemented by regional wines and craft beers that reflect the city’s festive and welcoming spirit.
Pristina, our vibrant capital, represents Kosovo’s modern identity. I see it as a city that blends museums, galleries, universities and lively cafés with distinctive landmarks such as the National Library, the NEWBORN monument and the Mother Teresa Cathedral. For Hungarian travellers, Pristina offers direct insight into Kosovo’s political, cultural, and social life, shaped by a youthful and dynamic atmosphere. The city is also home to the internationally renowned Sunny Hill Festival, co-founded by Dua Lipa, which has become one of the most prominent cultural events in the region. Pristina’s culinary scene mirrors its energy, combining traditional dishes such as qebapa and Balkan pastries with modern interpretations, alongside a strong coffee culture rooted in centuries of tradition.
Peja is another destination I hold in high regard. Situated near the Rugova Valley, it combines rich cultural heritage with traditional bazaars that reflect Kosovo’s history. The surrounding mountains offer excellent opportunities for hiking, climbing, skiing and adventure tourism. Local gastronomy emphasises hearty mountain cuisine, including smoked meats, homemade cheeses, honey, and herbal teas gathered from alpine environments.
The Rugova Valley itself is, in my opinion, one of Kosovo’s most spectacular natural areas. It offers outstanding opportunities for hiking, climbing, skiing, and exploration of traditional mountain villages. As part of the Peaks of the Balkans trail, Rugova attracts eco-tourists and adventure travellers from across Europe. Visitors can enjoy authentic farm-to-table dishes, local cheeses, herbal teas, and mountain specialities that highlight Kosovo’s alpine culinary traditions.
Mitrovica offers a different and valuable perspective on Kosovo’s contemporary history and social dynamics. I see it as a place where visitors can explore the city’s northern and southern districts, engage with cultural initiatives, and learn about Kosovo’s mining heritage. Culinary offerings in the region reflect its diversity, featuring locally produced cheeses, cured meats, and traditional desserts.
Brezovica, is Kosovo’s premier winter tourism destination that combines alpine adventure with culinary richness. In addition to skiing and snowboarding, mountain lodges and resorts serve traditional dishes such as stews, grilled meats and regional cheeses. Honey, herbal teas and dairy products sourced from the surrounding mountains further enrich the gastronomic experience. I believe Brezovica has strong potential to develop into a regional mountain resort hub.
Rahovec, known as Kosovo’s wine capital, is a destination I particularly recommend to wine and food enthusiasts. Its vineyards and wineries offer tastings of indigenous grape varieties, often paired with cured meats, cheeses, and seasonal produce. Harvest festivals celebrate both wine and culinary traditions, providing visitors with immersive cultural experiences.
Overall, I see Kosovo as a destination that successfully brings together history, culture, nature, adventure and gastronomy. From the Ottoman-era streets and cultural festivals of Prizren to the urban energy of Pristina, from the alpine landscapes of Rugova and Brezovica to the vineyards of Rahovec, Kosovo offers Hungarian travellers a rich variety of experiences. Combined with affordability and a well-known tradition of hospitality, I firmly believe Kosovo remains one of the Western Balkans’ most attractive yet still underexplored destinations.
DNH: Kosovo–Hungary relations: Opportunities and outlook
Delfin Pllana: From my own perspective, my third return to Hungary marked an important moment both personally and professionally, as well as in the development of Kosovo–Hungary relations. In January 2010, I returned not as a student or visitor, but as one of the first diplomatic representatives of the Republic of Kosovo, serving as Deputy Head of Mission and tasked with establishing our inaugural embassy in Budapest. For Kosovo, this step carried clear political significance, reflecting international recognition and the beginning of a structured bilateral partnership.
When I returned again in June 2024 as Ambassador Extraordinary and Plenipotentiary, I felt that this was a continuation of a dialogue that had steadily evolved over many years. Since Hungary recognised Kosovo’s independence on 19 March 2008, our relations have developed into a stable and multidimensional partnership. I deeply appreciate Hungary’s consistent support for Kosovo’s Euro-Atlantic aspirations and its contribution to regional stability through participation in NATO’s KFOR mission. Political and economic cooperation has expanded gradually and rests on a solid bilateral framework.
High-level political exchanges have further strengthened this trajectory. President Vjosa Osmani’s state visit to Hungary on 17 June 2024 and President Tamás Sulyok’s reciprocal visit to Pristina on 8 December demonstrate sustained political dialogue and mutual engagement. Alongside these visits, regular contacts at governmental and parliamentary levels confirm our shared interest in addressing regional political, economic and security challenges in a pragmatic manner.
I see Hungary’s broader engagement in the Western Balkans as an integral part of its regional policy, and Kosovo regards this involvement as complementary to the development of our bilateral relations. As an EU and NATO member state with deep regional experience, Hungary plays an important role in discussions on enlargement, security and connectivity. I also acknowledge Hungary’s support for Kosovo’s visa liberalisation process and its active diplomatic presence in Pristina as evidence of its approach towards Kosovo’s European perspective.
Security cooperation remains a key pillar of our relationship. I attach particular importance to Hungary’s substantial contribution to KFOR, including its leadership of the mission from November 2021 to October 2022, which clearly demonstrates Hungary’s commitment to stability in Kosovo and the wider region.
At the same time, I observe that our bilateral relations are increasingly oriented toward practical cooperation. Education, economic exchange, and people-to-people contacts continue to grow. The Stipendium Hungaricum program, which has supported approximately 300 Kosovar students studying in Hungary, represents a long-term investment in academic and professional ties. The Kosovar community in Hungary, including entrepreneurs active in the bakery sector, also contributes to economic interaction and societal links between our two countries.
Looking ahead, I see significant potential for further cooperation in investment, education, infrastructure development, tourism, regional connectivity and security. The planned establishment of a Kosovo–Hungarian Chamber of Commerce in Budapest and the possible reintroduction of a direct flight between Budapest and Pristina would further facilitate trade, tourism, and academic exchange. I remain optimistic that by building on existing frameworks and shared interests, Kosovo and Hungary will continue to strengthen a partnership that contributes not only to bilateral relations but also to regional stability and European integration.
DNH: What does Kosovo hope to gain from Hungary’s experience as an EU member, particularly considering Kosovo’s own aspirations for EU accession?
Delfin Pllana: I sincerely believe that Kosovo can gain immensely from Hungary’s experience as a member of the European Union, particularly in terms of institutional transformation, regulatory alignment, and economic modernisation. From my perspective, Hungary represents not only a valued bilateral partner but also a source of practical and tested experience in navigating the demanding path toward European integration. Hungary’s transition from candidate status to full EU membership offers a comprehensive model of reform and adaptation that Kosovo seeks to study carefully and apply in accordance with its own national context.
I place particular emphasis on Hungary’s experience with regulatory and institutional reforms. As Kosovo continues to advance its EU-oriented reform agenda, I see Hungary’s lessons as highly relevant in helping us strengthen public administration, improve regulatory quality, streamline bureaucratic procedures and enhance transparency. I am confident that learning from both Hungary’s successes and its challenges can assist Kosovo in designing more effective, resilient, and credible institutions that meet European standards and expectations.
Economic modernisation is another area where Hungary’s experience is especially instructive. Hungary successfully used EU accession and membership to integrate into European value chains, attract foreign direct investment and benefit from EU structural and cohesion funds. Kosovo aims to follow a similar path by developing priority sectors such as manufacturing, information and communication technology, agribusiness and renewable energy. I strongly believe that Hungary’s example demonstrates how strategic planning, targeted investment in human capital, and the effective use of EU funding instruments can significantly accelerate competitiveness, productivity, and economic diversification.
I also value Hungary’s insights into EU decision-making processes, accession negotiations, and regional cooperation mechanisms. Through structured dialogue, joint technical workshops, and institutional exchange programs, Kosovo can benefit from Hungarian expertise across a wide range of policy areas. In my view, such cooperation strengthens Kosovo’s capacity to navigate its own European integration path more effectively and with greater confidence.
For me, EU integration is not merely a political objective; it is a transformational process that shapes governance, economic performance, and societal resilience. Through close cooperation and knowledge-sharing with Hungary, I am convinced that Kosovo can advance more steadily toward its European future.
DNH: How do you feel living in Budapest? How much have you managed to get to know Hungary and the Hungarian people? What similarities or differences have you observed so far between the cultures of our two countries?
Delfin Pllana: Living in Budapest today feels deeply personal and profoundly meaningful to me. This city has accompanied me through several important chapters of my life – first as a young visitor, later as a student, then as a diplomat, and now as Ambassador. Each return has strengthened my sense of connection. Budapest is dynamic, confident and vibrant, yet it has preserved the dignity, intellectual depth and human warmth that first impressed me back in 1998.
Walking along the Danube or through the historic streets of Buda and Pest, I often feel that this is not simply a place where I work and reside, but a city that has shaped my personal and professional journey. Living here is not only a responsibility; for me, it is a genuine privilege.
Over the years, I have come to know Hungary and the Hungarian people not only through official engagements, but through everyday life. My understanding of this country has developed gradually – through academic debates in Kőszeg and at Corvinus University, through close cooperation with Hungarian colleagues and institutions and through the deeply human experience of raising my children here. What has impressed me most is the Hungarian blend of resilience and modesty.
Hungary is a nation deeply conscious of its history and cultural heritage, yet equally committed to renewal and progress. I have encountered intellectual seriousness, a strong sense of national identity, and at the same time a sincere openness to dialogue and cooperation. The friendships I have formed – whether in lecture halls, ministries, or neighbourhood parks – have given me a meaningful insight into a society that values loyalty, perseverance, and quiet determination.
When I reflect on the similarities and differences between our two countries, I see far more points of connection than distance. Both Kosovo and Hungary are societies that understand the weight of history and the importance of sovereignty. Both place great value on family, tradition and national culture. There is a shared sense of pride and a deep attachment to language, heritage, and identity.
At the same time, our historical trajectories have shaped us differently. Hungary’s long-standing state tradition and Central European experience contrast with Kosovo’s more recent journey of state-building and international recognition. Yet I do not see these differences as barriers. On the contrary, I see them as enriching contrasts that allow us to learn from one another and deepen mutual understanding.
If I were to summarise my feelings, I would say that Hungary entered my life quietly but remained with enduring strength. It offered stability during times of uncertainty, intellectual growth during my formative years and a welcoming home for my young family. Today, as I serve here once again, I do so with gratitude and optimism. Hungary is not only a strategic partner of Kosovo; for me personally, it is a second home – one that continues to affirm the power of continuity, mutual respect, and genuine friendship between our peoples.
DNH: Finally, a lighter question: when you think of Hungarian gastronomy, which appetiser, main course, and dessert are your favourites?
Delfin Pllana: I often say to my Hungarian friends that gastronomy expresses what diplomacy sometimes conveys more gradually. While our countries differ in language and historical experience, we share a deep respect for family, heritage and the simple joy of gathering around a table. Hungarian cuisine, much like Hungarian society itself, is proud yet welcoming, and for me, it feels both distinctive and reassuringly familiar.
When I think of Hungarian gastronomy, gulyás immediately comes to mind. It is far more than a dish; it is a symbol of warmth, hospitality and togetherness. To me, gulyás reflects the generous spirit of Hungary and its tradition of welcoming guests with sincerity and pride.
As an appetiser, I particularly appreciate libamáj, especially when it is prepared simply, allowing its rich and refined flavour to stand on its own. It represents the elegance, confidence, and culinary heritage for which Hungarian cuisine is rightly known.
For dessert, I hold a special appreciation for somlói galuska and Dobos torta. Hungarian desserts beautifully combine refinement with comfort, craftsmanship with tradition. They reflect a society that values detail, quality and continuity – values that resonate deeply with me and with Kosovo as well.
From my years in Hungary, I can say with certainty that through its cuisine, Hungary tells a story of identity, resilience and generosity. It is a story I recognise, respect, and deeply appreciate.
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