What do tourists need to know about traveling to Bosnia and Herzegovina?

General information about Bosnia and Herzegovina

Bosnia and Herzegovina (BiH) refers to a country located on the Balkan Peninsula, consisting of federal units: the Federation of Bosnia and Herzegovina, the Republika Srpska, and the Brčko District. To the north and west, it borders Croatia, while the eastern and southeastern borders run along the lines with Serbia and Montenegro. The country is also framed by a narrow stretch of Adriatic Sea coastline approximately 20 kilometers long. Sarajevo is the capital of the state, and other major cities include Banja Luka, Tuzla, Mostar, and Zenica.Official currency– convertible mark.

Population and languages

The total area of the country is approximately 51 thousand square kilometers, which is similar to the area of Latvia or Croatia. The population of Bosnia and Herzegovina is around 4 million people, with the majority concentrated in the central and northern parts. The locals speak three main languages: Bosnian, Serbian, and Croatian; English is particularly widespread among the youth.

International relations

Bosnia and Herzegovina actively participates in international politics, being a member of organizations such as:

• UN
• World Bank
• IMF
• OSCE
• Council of Europe

In addition, the country hascandidate statusRegarding the accession to the European Union, plans are set to be implemented by 2027. Economically, Bosnia is viewed as a developing country.

Economic development

In recent years, the country's economy has shown steady growth; however, in 2020, there was a decline caused by the COVID-19 pandemic and internal political challenges. According to World Bank forecasts, a recovery growth rate is expected in 2021.3.5%related to reducing the negative impact of these circumstances. The unemployment rate is still quite high and stands at15.7%The average annual income per capita is approximately equal to6 thousand dollars.

Key sectors of the economy

The main sectors of the economy are:

• production
• construction
• agriculture
• wholesale and retail trade

Tourism in Bosnia is present, although it does not reach the level of neighboring countries like Montenegro or Croatia. Nevertheless, over the past two decades, there has been an annual increase in the number of tourists choosing winter and eco-tourism by more than20%.

Tourism

According to statistical data from BiH, 2019 was a record year for the number of foreign tourists: the country was visited by1.2 millionTravelers, which is 14% more than last year. The most active tourists were citizens:

• Croatia (138.4 thousand)
• China (103 thousand)
• Serbia (102.3 thousand)
• Turkey (70.9 thousand)
• Slovenia (67.9 thousand)

In 2020, for obvious reasons, the number of tourists sharply decreased, amounting to only one-sixth of the 2019 level.

Conclusion

Bosnia and Herzegovina is a safe and friendly tourist destination in Europe. The country attracts both winter and summer vacation enthusiasts, offering a diverse and rich experience for its visitors.

Visa-free travel to Bosnia and Herzegovina

As of today, citizens of Russia and Ukraine have the opportunity for visa-free entry into Bosnia and Herzegovina if the purpose of the trip is tourism or attending private events. The duration of stay must not exceed thirty days within a total period of sixty days, starting from the first entry. This visa-free regime also applies to citizens of the United States, Japan, Canada, Georgia, and Europeans, with visa-free stay durations ranging from thirty to ninety days depending on the country. If a longer stay is planned, a visa will be required.

Requirements for individual countries

It is worth noting that visitors from Kazakhstan, Belarus, and Armenia need to obtain a visa, regardless of the purpose and duration of their trip. Issues related to the stay of foreigners in Bosnia and Herzegovina are regulated by legislative acts concerning foreigners. Complete lists of countries, visa-free stay periods, and required documents for a visa can be found on the official websites of the Ministry of Foreign Affairs of Bosnia and on the portal of the Foreigners' Affairs Service.

Obtaining resident status

When it comes to resident status in Bosnia and Herzegovina, it can only be obtained with serious grounds. Such grounds include:

• labor activity;
• business presence;
• studying at a higher level;
• marriage to a citizen of the country.

It is also possible to obtain residency through investments in real estate.

The procedure for applying for a visa

The capital of the Republic of Srpska is the city of Banja Luka. To apply for a visa for residency through real estate acquisition, certain documents need to be gathered. These include:

• Valid foreign passport;
• A completed questionnaire (form 107), written legibly and without corrections, with your signature;
• One current photograph measuring 3.5 by 4.5 centimeters;
• A copy of the passport page with the type D visa and the corresponding entry stamp;
• A copy of the document confirming registration at the place of residence in Bosnia, known as the "white card";
• Documents confirming ownership, such as an extract from the land registry or a certificate confirming the signed contract for the purchase of real estate;
• Documents that prove your connections to Bosnia, such as children's education, pension payments, investments, or documents confirming family ties;
• Confirmation of financial means for living expenses;
• Medical insurance;
• Health certificate issued within the last three months;
• Certificate of no criminal record issued within the last six months;
• Receipt for the payment of an administrative fee of 77 euros (which is equivalent to 150 convertible marks).

All the listed documents must be translated into one of the official languages of Bosnia and certified with an apostille. The application can be submitted to the Foreigners' Affairs Office at the place of registration or to the diplomatic missions of the country outside its borders.

Temporary residence permit in Bosnia and Herzegovina

An important element of the process of obtaining a temporary residence permit in Bosnia and Herzegovina (BiH) is the long-term visa of category D. This visa allows foreigners to stay in the country for a maximum of 180 days within a calendar year.

Procedure for obtaining a visa

For citizens of Russia, Belarus, and other individuals with permanent residency in Russia, it is necessary to visit the Embassy of Bosnia and Herzegovina located in Moscow to apply for this visa. As for Ukrainian citizens, they should contact the Embassy of Bosnia and Herzegovina located in Budapest, Hungary.

Submission of documents

When applying for a temporary residence permit, you must submit documents at least 15 days before the expiration of your previously obtained long-term visa. A mandatory requirement is the personal presence of the applicant at the time of submission, including the biometric data collection procedure.

Terms and extension of temporary residence permit

A temporary residence permit is issued for a period not exceeding one year, but it can be extended if certain conditions are met, such as:

• Real estate availability
• Payment of taxes
• Absence of offenses

Change of temporary residence permit

If there is a need to change the current temporary residence card, the application must be submitted 15-60 days before the expiration of the current permit. A small fee of 10 euros must also be paid. All documents must be submitted in person to the relevant authority for foreign affairs at the actual place of residence.

The city of Mostar

Mostar is a charming city located by the Neretva River and ranks fifth in population in Bosnia and Herzegovina. Foreigners who have legally resided in Bosnia and Herzegovina on the basis of a temporary residence permit for at least five years are eligible to apply for permanent residency.

Conditions for obtaining permanent residency

This also includes those who left the country for a period not exceeding ten months during the specified time, or who did not exceed six months of continuous travel.

The process of obtaining citizenship

In order for a residence permit to be converted into citizenship, it is necessary to continuously reside in the country for three years and meet the conditions set out in the naturalization law of Bosnia and Herzegovina. The main requirements include:

• Reaching the age of 18
• Renunciation of the previously held citizenship or confirmation of its automatic termination after obtaining Bosnian citizenship.
• Continuous residence in the country for eight years at the time of application.
• The presence of a stable source of income
• Absence of offenses that could lead to deportation
• The absence of criminal offenses against public order, humanity, or military actions.
• Proficiency in at least one of the state languages

Rights of new citizens

Individuals who have obtained citizenship of Bosnia and Herzegovina can enjoy the same rights as local residents. This means they can freely live, study, work, and engage in entrepreneurship in the country without any restrictions.

In addition, such citizens have the right to travel freely within the countries of the European Union for up to three months without the need for a visa, and they can also obtain a visa to the USA and the UK more easily, with a maximum processing time of ten days.

Tuzla: Historical Heritage and Real Estate Acquisition Opportunities

Tuzla, located in the territory of one of the oldest European civilizations, is the third largest city in the Federal Republic of Yugoslavia. If you are interested in purchasing real estate in this city, there are a few important aspects you should know.

Legal Basis for Real Estate Acquisition

In particular, foreign citizens have the right to purchase and own real estate if there are reciprocity agreements between Bosnia and their home countries. Currently, more than 70 countries have signed such agreements, including Russia and many post-Soviet republics. If your countries have not signed such international agreements, it is advisable to consider conducting the transaction through the establishment of a legal entity.

Creation of a Legal Entity

Opening a company for these purposes will cost approximately1000 eurosThe process itself may take about ten days. Foreigners can make purchases:

• residential properties
• commercial properties
• land plots of up to 500 square meters

If you plan to buy a larger plot of land, such a transaction is only possible through a company registered in your name. It's important to remember that local laws do not allow the purchase of land used for agriculture or property in protected natural areas.

The Role of Agriculture in the Economy

The agricultural sector is a fundamental element of the region's economy and generates significant income.

Changes in the market of Bosnia and Herzegovina

Over the past fifteen years, Bosnia and Herzegovina has transformed from a country that was not attractive to investors due to the aftermath of armed conflicts. Today, the republic stands out among other regions of the Balkans, drawing attention with its real estate market, which shows significant growth, a variety of offerings, and relatively low prices.

Construction statistics

According to the company's reportDeloitteIn 2020, work began on over four thousand new constructions in Bosnia, with more than 2,400 residential properties already put into operation. This level of activity in the real estate market is comparable to the figures observed in Latvia. It is worth noting that purchasing property in the country can provide temporary resident status, making the market even more attractive to foreign investors.

Popular cities for investment

The cities that attract the most attention from investors are:

• Zenith
• Banja Luka
• Mostar
• Tuzla
• Sarajevo

The prices per square meter vary depending on the region. For example, in the capital, the cost per square meter can reach up to1000 to 1700 euros...while in Mostar the average price is around...750 eurosIn Tuzla, the price for the same square meter is approximately equal to1000 euros.

The impact of COVID-19 on the market

Although the spread of [something] has affected the real estate marketCOVID-19In 2020, it turned out to be a temporary process: by mid-June, demand began to recover, and the market returned to pre-crisis levels. From January to December 2020, around16 thousand transactionsapproximately costing496 million eurosMost of them were in the secondary housing market.

Who buys real estate?

The main buyers of real estate are local residents, but foreign investors are also actively participating in transactions, among which:

• Germans
• Croats
• Serbs
• Slovenians

The highest number of transactions is related to the purchase of apartments and land plots suitable for both agriculture and new construction projects, especially in cities like Sarajevo, Tuzla, Zenica, and Mostar.

The most expensive real estate sales

In 2020, the most expensive deal was the purchase of an apartment in the capital's district.Novo Sarajevofor460 thousand euroswhile the house with the land plot inStari Gradwas sold for256 thousand euros.

Why should one consider residency through investment?

What are the advantages of obtaining residency through real estate purchase in Bosnia and Herzegovina? The country is actively developing, which creates certain prospects and risks. Although the standard of living and income levels, as well as the quality of infrastructure, are often lower than in more prosperous European countries, Bosnia and Herzegovina has significant growth potential, including in the real estate sector.

Comparison with neighboring countries

A striking example of a successful transformation of a country could be its neighbor.Albaniawhich recently faced serious crises but now attracts tourists and investors. Real estate prices in Albania are rapidly rising, and the interest of foreign investors in this market is increasing. Obtaining a residence permit in Bosnia and Herzegovina through real estate investment is not a typical "golden visa," but it opens up unique opportunities for potential investors.

First of all, it should be noted that Bosnia and Herzegovina is not part of the Schengen Agreement and is also not a member of the European Union. This means that a residence permit issued in this country does not grant the right to enter other European countries without a visa. It is also important to emphasize that in order to extend your residency status, you must actually be present in Bosnia. Compared to other countries, such as Portugal or Greece, where it is sufficient to appear just once a year or not visit the country at all, Bosnia's requirements seem much stricter.

Advantages of Bosnia in the real estate sector

Nevertheless, Bosnia has its own attractive features, especially in the real estate market. The immigration program through property purchase here can be an interesting option for those planning to move to the Balkans. One significant advantage is the absence of minimum price restrictions on real estate. Unlike Greece, where the investment amount starts from€250 thousandor Spain, where this figure reaches€500 thousandIn Bosnia, foreigners can purchase properties in various price categories. This allows not only to live in one of the purchased properties but also to earn income from renting out the others.

Comparison with neighboring countries

Similar conditions can be found in Montenegro and Serbia, but it should be noted that there are certain challenges in the labor market in Bosnia, and the salary levels remain lower than in most European countries. However, a significant number of people are currently working remotely. Many of them are considering starting their own business in a new location, as well as living off dividends or rental income. This creates new opportunities for those who want to move to Bosnia.

Investment attractiveness of Bosnia

In addition, it is worth mentioning that Bosnia is attractive to investors due to the following factors:

• Low tax rates;
• A favorable geographical location between Western and Eastern Europe;
• Developed banking services;
• High tourist potential.

The country offers not only excellent ski resorts and stunning natural beauty but also a rich variety of local cuisine, which certainly adds to its appeal for potential migrants. Therefore, for those seriously considering a new life in the Balkans, Bosnia and Herzegovina can be a very enticing option.

Conclusion

Bosnia and Herzegovina is a unique country with a rich history and cultural heritage that continues to attract the attention of both the domestic and international community. By studying its economy, demographics, and tourism opportunities, I have concluded that this place has immense potential for development.

The past years have shown that, despite internal problems and economic challenges, Bosnia and Herzegovina is capable of positive changes. Economic growth, even if temporarily halted by the pandemic, is returning, and business activity is gradually increasing. Despite the high unemployment rate, providing investment opportunities and developing sectors such as tourism and agriculture can serve as a foundation for creating new jobs.

Tourist appeal

Undoubtedly, the tourist appeal of Bosnia and Herzegovina is only increasing. Beautiful natural landscapes, unique architecture, and cultural diversity make the country a wonderful destination for both winter and summer vacations. Bosnia and Herzegovina is already attracting tourists from various corners of the world, and I am confident that with proper attention to the development of tourist infrastructure, these numbers will continue to grow.

Visa requirements and residency

As for visa requirements and opportunities for obtaining resident status, they make the country even more accessible to foreign citizens. The visa application process for many countries has been significantly simplified, and participating in the economy through real estate investments can make staying in the country more comfortable and long-term.

International relations

From the perspective of international relations, Bosnia and Herzegovina's membership in organizations such as the UN and the Council of Europe reflects its desire to integrate into broader European and global processes. Its candidate status for EU membership highlights its ambitions and commitment to moving forward.

Culture and inclusivity

Traveling through this country, I feel pleasantly surprised by how closely modern and traditional aspects of life intertwine. The locals greet tourists with open hearts, ready to share their culture and history, which creates a unique atmosphere.

Conclusions

In conclusion, Bosnia and Herzegovina is not just a place on the map, but a vibrant, breathing country full of opportunities. I hope that with each passing year, its potential will be increasingly realized, and it will become an integral part of the European and global community. This country deserves attention and discussion in our globalized world, and I look forward to seeing what the future holds for it and its people.