Advantages of investment climate in Georgia

Published at 29/06/2020
  • A politically stable investment destination
  • Efficient, pro-business and corruption-free government
  • Free trade agreement with 2.3 billion markets
  • Competitive cost of labor and energy 
  • Entry gate between Europe and Asia 
  • Stable Macroeconomic situation and solid sovereign balance sheet
  • Simple, low and efficient taxation 
  • 9th easiest country to do business in (World Bank’s Ease of Doing Business Report 2018) 
  • 5th safest country in the world (Numbeo’s Crime Index, 2018) 

Advantages of investment climate in Georgia — Advices from experts and reviews of real estate on GEOLN.COM. Photo 1

GEORGIA RANKS 9TH IN DOING BUSINESS REPORT

Country’s impressive progress in improving business climate has been well documented in a number of international indices

Advantages of investment climate in Georgia — Advices from experts and reviews of real estate on GEOLN.COM. Photo 2

BUSINESS CLIMATE IN GEORGIA

Liberal and free market oriented economic policy strengthened by the rule of law

Advantages of investment climate in Georgia — Advices from experts and reviews of real estate on GEOLN.COM. Photo 3

CORRUPTION FREE COUNTRY

Georgia is considered as an essentially corruption-free investment destination

Advantages of investment climate in Georgia — Advices from experts and reviews of real estate on GEOLN.COM. Photo 4

ECONOMIC STRUCTURE AND TRENDS

Advantages of investment climate in Georgia — Advices from experts and reviews of real estate on GEOLN.COM. Photo 5

Advantages of investment climate in Georgia — Advices from experts and reviews of real estate on GEOLN.COM. Photo 6

FOREIGN DIRECT INVESTMENT

Georgia has signed Bilateral Investment Treaties (BITÕs) with 33 countries and is member of ICSID Convention since 1992 

FDI amounted to USD 1.86 billion in 2017 

Advantages of investment climate in Georgia — Advices from experts and reviews of real estate on GEOLN.COM. Photo 7

PREFERENTIAL TRADE REGIMES

  • Deep and Comprehensive Free Trade Area (DCFTA) with EU 
  • Free Trade Agreement with the People’s Repub­­ lic of China 
  • Free Trade Agreements (FTA) with EFTA Coun­tries (Iceland, Norway, Switzerland, and Liechten­ stein), Turkey and CIS countries (Russia, Ukraine, Kazakhstan etc.) 
  • GSP agreement with USA, Canada, Japan
  • Member of WTO 
  • Very simple and service oriented customs policy and administration – customs clea­ rance in 15 minutes 
  • 80% of goods are free from import tariffs
  • No quantitative restrictions 

TAXATION IS SIMPLE, LOW, EFFICIENT AND FAIR

  • No social security tax
  • No wealth tax and inheritance tax 
  • Personal income tax for interest, dividend, royalty – 5%
  • Foreign-source income of individuals fully exempt
  • No restrictions on currency convertibility or repatriation of capital & profit
  • Double taxation avoidance treaties with 54 countries 

0% CORPORATE PROFIT TAX

From 2017 companies pay Profit Tax only on distributed earnings, reinvested profit is exempt from corporate profit tax. 

  • Profit distributed to shareholders as a dividend
  • Profit repatriated from permanent establishments to its head office
  • Non-arm’s length cross-border transactions with related parties
  • Non-arm’s length transactions with persons exempt from profit or income tax
  • Non-arm’s length transactions with related persons not covered under the new system

GEORGIA HAS YOUNG, SKILLED & COMPETITIVELY PRICED LABOR FORCE

Advantages of investment climate in Georgia — Advices from experts and reviews of real estate on GEOLN.COM. Photo 8

INCENTIVES

FREE INDUSTRIAL ZONES

  • Exemptions from all taxes except Personal Income Tax (20%), which is paid from employees’
  • salaries
  • Four Free Industrial Zones (FIZs) operate in Poti (port city), Kutaisi (third largest city) and Tbilisi
  • (capital)

FREE TOURISM ZONES

Free Land

Profit and Property Tax Exemptions until 2026

Free Casino License for Hotel with over 80 Rooms

INCENTIVES FOR MANUFACTURING

Free lands & buildings for factory construction

Subsidies for loan interest payment

Grants for food processing factories

FINANCING OF VOCATIONAL TRAINING

33 state owned vocational education training facilities throughout Georgia

Most of the course’s fees are financed by the Government


Average rating: 4.82. Votes: 28

Diana Kabakci

The leading expert of the real estate market in Georgia
Education: MBA
Sphere: Real estate / Investments / Lawyer
Consultations made: 250
Expert on countries: Cyprus, Georgia, Kazakhstan, Poland
Known languages: Russian / Georgian / English / Turkish
Experience: 13 years
Expert publications: 545