Bosnia Capital Gains Tax Guide 2026

Overview — CGT in Bosnia and Herzegovina

Capital gains in Bosnia are treated as ordinary income under the personal income tax laws of both entities. There is no separate capital gains tax regime — gains are aggregated with other income and taxed at the flat rate. For individuals, this means capital gains are taxed at 10% (FBiH) or 8% (RS). For companies, gains are included in corporate profits and taxed at 10% CIT. The tax treatment of gains in Bosnia is relatively straightforward compared to jurisdictions with complex CGT regimes, making it attractive for investors. Both entities have specific rules on exemptions, indexation, and reporting.

Taxable Assets & Rates

Capital gains on the following assets are generally taxable:

• Real estate (land, buildings, apartments) — gains taxable at ordinary income rates
• Shares & securities — gains from sale of shares in Bosnian and foreign companies
• Business assets — gains on disposal of business property and equipment
• Intellectual property — gains on sale of patents, copyrights, trademarks

The applicable rates are 10% (FBiH individuals), 8% (RS individuals), or 10% (corporate in both entities). The gain is calculated as the selling price minus the acquisition cost, with indexation for inflation available in some cases. Acquisition costs include the purchase price, transaction fees, notary costs, and capital improvements.

Exemptions & Reliefs

Several exemptions are available for capital gains in Bosnia:

• Principal residence — gain from the sale of a principal residence is exempt if the owner has lived in the property for at least 2-3 years (varies by entity)
• Holding period exemption — gains on shares held for more than 2 years (FBiH) or 3 years (RS) may be exempt
• Agricultural land — exemptions for agricultural land held for more than 10 years
• Inheritance — no capital gains on assets acquired through inheritance (cost base is inherited)
• Gifts — exemption for qualifying gifts between close family members

The holding period exemption makes Bosnia favourable for medium to long-term investors in shares and real estate.

Real Estate Gains

Real estate gains are one of the most common CGT scenarios. The tax is calculated on the positive difference between the selling price and the acquisition cost. Indexation is available to adjust the acquisition cost for inflation using official indices published by the statistics agency. Notary fees, agency commissions, and registration costs may be deducted. For inherited property, the cost base is the market value at the date of inheritance. Gains from the sale of newly constructed properties by developers are treated as business income rather than capital gains.

FAQs

How do I calculate my capital gain?

The gain is the selling price minus the acquisition cost (plus enhancement costs and transaction fees). Example: Buy shares for BAM 50,000, sell for BAM 80,000, fees BAM 1,000. Gain = 80,000 − 50,000 − 1,000 = BAM 29,000. Tax at 10% = BAM 2,900.

Can I offset capital losses against gains?

Yes, capital losses may be offset against capital gains in the same year. Unrelieved losses may be carried forward for up to 5 years. Losses on personal assets (e.g., private car) are generally not deductible.

Are gains on foreign shares taxable?

Yes, tax residents are taxable on worldwide gains. Foreign gains must be declared in the annual tax return. Foreign tax credits may be available under applicable DTTs.

Disclaimer

This guide provides general information about Bosnian capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Bosnian tax advisor or the relevant tax authority for advice specific to your situation. InvestmentKit does not provide tax advice.