It is not in Schengen, they just don’t need visas.
This is the best summary I could come up with:
The Western Balkan nation was the last in the region to access free travel within the European Union.
Kosovars are celebrating this week after visas for Europe’s open-border Schengen zone were waived for the first time in the small nation’s history.
The Schengen area allows some 400 million people to travel freely between member countries in the EU, without the need to go through border controls.
Tough requirements from a number of EU member states as well as domestic disputes have delayed the process for Kosovo for many years.
Back in 2018, the EU said all requirements were fulfilled for Kosovo to get rid of visa travel, but both France and the Netherlands made objections over the decision, fearing a new wave of migration.
Kosovo’s statehood is recognised by more than 110 countries - but, until this week, the 1.8 million citizens could travel to fewer than 20 states without visas.
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