The best way to diversify your portfolio is by investing abroad or overseas. As an investor, you don’t arrive at such a decision just by a snap of a finger. There are many factors to consider, such as inflation rates, political stability, tax implications on foreign companies, different currencies, and exchange rates, and above all, the demand for your products and services in that particular country.
There are advantages of investing abroad, such as portfolio strengthening, market expansion, benefit from exchange rates, accessibility to many options, and some tax exemptions. It seems like a pretty good option to invest abroad, but remember there are some serious dangers for investing abroad or overseas, such as the ever-changing rates of exchange, which can result from inflation or political instability.
Balkans is one of potential place to consider investing. Balkans is a region situated Southeast of Europe which comprises a group of countries; Bulgaria, Albania, Herzegovina, Bosnia, Montenegro, Kosovo, Romania, Slovenia, Croatia, and Serbia. All these countries location is within the Peninsula. Most people wonder why one should think of investing in Balkans. Well if you have no idea, this is why Balkans is a great place to put an investment;
- Growth and economic stability.
Most of the countries in Balkans are in the EU (European Union), and over the past years, these regions have experienced a stable economic condition. Later, all the EU candidate countries signed a Stabilization and agreement (SAA) with the EU, to facilitate free trade with the EFTA, CEFTA, and the EU.
In addition to these, Herzegovina, Bulgaria lev, and Bosnia Convertible mark have maintained its stability since currency board acceptance with the German score till 2002, followed by Euro.
Furthermore, Balkans has the best banking infrastructure, making it easy for foreign investors to receive their after-tax profits. For instance, Bulgaria guarantees investment protection from any government interference. On the other hand, Montenegrin is preparing economic citizenship for foreign prospecting investors who desire to put an investment in their country.
It is important to note that each Balkan state has that one aspect that makes it the ideal place to put an investment. Slovenia, for instance, is an attraction to many investors because of its strategic location, which offers reliable transport as well as effective communication technology. It also has enough skilled workers in various works; thus, investors will not have to incur the extra costs of importing workers.
The tax rates are meager, that about 15% of the company’s incomes. The Slovenians trading partners are Italy, Austria, and Germany which is a good indicator to setting an investment in tis place.
2 . Demographics
Balkans people are characterized by young men and women who are very hardworking , well educated and have the ability to communicate in at least two foreign languages. Balkans is the logical location; everyone must identify a niche and establish an investment.
3. Things You Can Invest In
There are very many things that you can actually invest in Balkans, the obvious one is of course located in the seaside, you have Bulgaria, Albania and the most popular one Croatia there. For example Croatia’s tourism is very much dependent on the sea part of the country, it’s the place the visitors come the most frequently therefore things like island hopping or Croatia sailing is sought after by all the visitors. In places like Serbia or Bosnia, things take on a different turn because the country has to provide a different kind of interest for people so if you like more rural things this is definitely something you want to explore more. Also, Croatia being the most popular and most visited country in the Balkans, it has many benefits for the visitors, investors and tourists, for example many people invest in Croatia property that’s for sale on the seaside because they know that during the season it’s a great investment due to high rent demand.
4. Costs, trade, and taxes
The current trade and tax policies in the region could be an advantage to any investor who plans on investing in this region. For instance, countries in this region offer low corporate taxes with zero tax for some businesses to 15% on others. This region is also a free economic zone, and above all, Balkan countries’ rent options are very cheap as well as labor costs, making it an ideal investment region.
Most people desire to establish their businesses in some more mature markets such as in the United States, forgetting that there exist some critical investment requirements compared to regions like Balkans, which bets suits them.
