We’re excited to share some groundbreaking news from the Georgian government, aimed at fostering the growth of the IT sector and attracting international talent. Starting September 1, 2025, amendments to the Georgian Law “On the Legal Status of Aliens and Stateless Persons” come into force. This significantly simplifies the process for IT specialists Georgia residency.

What’s Changing?

Under the new regulations, IT specialists Georgia residency can be obtained through a simplified procedure. This permit is initially for 3 years, with a possible extension up to 12 years. This unprecedented step underscores Georgia’s aspiration to become a regional IT hub. It also aims to attract skilled professionals from around the globe.

Why Is This Important?

This change offers numerous advantages for IT professionals:

• Simplified Procedures: It will reduce bureaucracy and accelerate the residence permit acquisition process.
• Long-Term Perspective: A 3-year initial permit and its potential 12-year extension offer stability. This benefits those planning long-term development in Georgia.
• New Opportunities: Georgia’s technology sector is rapidly expanding. Tbilisi is fast becoming a startup hub, creating many career opportunities.

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Tax Benefits in the IT Sector

Beyond the simplified residence permit process, Georgia offers significant tax incentives for IT specialists and companies. These benefits make the country even more attractive:

1. International Company Status

The Georgian government has introduced the “International Company” status. IT and maritime service companies can benefit from it. Companies with this status enjoy the following advantages:

• Profit Tax: Instead of 15%, it’s only 5%.
• Income Tax (on employee salaries): Instead of 20%, it’s 5%.
• Dividend Tax: It does not incur taxation at the source of payment.
• Property Tax: You are exempt from property tax (excluding land) if you use the property for permitted activities.
• Reduced Taxable Profit: You can reduce taxable profit by salaries paid to Georgian citizen employees. You can also reduce it by costs of research, design, and experimental-constructive services.

Important: To obtain International Company status, a company must meet certain conditions. These include having at least 2 years of experience in permitted activities (e.g., software development, computer games, computer programming, and other information technologies).

For more information about International Company status check our blog post here.

2. Virtual Zone Status

Individual and legal entities in the IT sector can obtain “Virtual Zone Person” status. This allows them to benefit from significant tax incentives. This applies if they supply their IT services/products to non-resident customers outside of Georgia.

The advantages of this status are:

• Profit Tax: The distribution of profits from a Virtual Zone Person’s IT supply outside Georgia is not taxed.
• Value Added Tax (VAT): Supplies made outside of Georgia are not subject to VAT.

Important: To obtain Virtual Zone status, the company must be registered in Georgia. Its main activity must also be in the IT sector.

For more information about Virtual Zone status check our blog post here.

3. Small Business Status (for Freelancers)

If you are an individual IT specialist (freelancer), you can benefit from Small Business status. This applies if your annual turnover does not exceed 500,000 GEL. In this case, you tax your income at a rate of only 1%, instead of the standard 20% (if you are not a VAT payer).

For more information about Small Business status check our blog post here.

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Why Georgia?

Georgia is not only distinguished by its developing IT sector but also offers:

• A Friendly Environment: Georgian hospitality is renowned worldwide.
• Favorable Tax System: Low taxes are particularly attractive for freelancers and small businesses.
• Affordable Cost of Living: Compared to Western countries, the cost of living in Georgia is significantly lower.
• Rich Culture and History: Georgia boasts stunning nature, ancient history, and a unique culture.
• Strategic Location: Georgia serves as a bridge between Europe and Asia.

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If you’re an IT specialist looking for new challenges, career advancement, and a better quality of life, Georgia is the ideal place for you. Don’t miss out on this unique opportunity for IT specialists Georgia residency!

For more details about new IT Residency Permit in Georgia refer to the Georgian Law “On the Legal Status of Aliens and Stateless Persons”: https://www.matsne.gov.ge/ka/document/view/2278806?publication=20

Do you have any questions or want to learn more about Georgia’s tax benefits amd IT Residency Permit in Georgia? Contact and let us know.

1. Introduction

In order to attract foreign investment and boost the economy chapter XII of the Tax Code of Georgia offers a special taxation regime for small business entrepreneurs, which imposes significant tax benefits. In general, according to Georgian lax legislation, the income of a natural person is taxed at 20% (with some exceptions) tax rate. However, in case of Small Business Entrepreneur tax certificate, personal income tax rate reduced to 1-3%.

2. The terms and conditions of granting the 1% Tax Rate Small Business Entrepreneur status

Tax agency grants the 1% tax rate small business entreprenur status, in particular the Revenue Service of Georgia. If it approves the application, issues a small business certificate within a reasonable time after receiving the application.
The status of a small business is granted to a person from the first day of the month following the month of the application for the status of a small business to the tax authority and the person is considered to have the status from that date.

The Small Business Certificate is issued for life and is valid unless the small business status of the individual has been revoked.

An individual must meet the following conditions for the status of a small business entrepreneur:

List of prohibited activities not applicable for the status of a small business:

In addition, to the above-mentioned activities, the legislation also establishes a list of activities in the case of which the income received by the small business individual entrepreneur taxed at 20% instead of 1% tax rate. Consequently, a natural person with the status of a small business, in addition to prohibited activities, can carry out several activities under the general rule and special tax regime at the same time, including receiving a salary from employment.

Types of income not applicable for the special tax regime:

3. Taxation of 1% Tax Rate Small Business Entrepreneur

In general, taxable income of small business is taxed at 1%. However, if the gross income from economic activities exceeds GEL 500,000, tax rate increases to 3%. A person with the status of a small business is taxed at a rate of 3% from the beginning of the relevant month of fixing the excess of the GEL 500,000 income limit until the end of the calendar year.

Example: George has been granted the status of a small business and carries out economic activities, in particular, he owns a “mini market”, where he is engaged in food retail trade. The taxable income received from this activity on October 20, 2019 exceeded GEL 500,000.

Analysis: Taxable income from trade by small businesses in Georgia is subject to special regime taxation, even though its income exceeds GEL 500,000. From January 1, 2019 to September 30 of the same year, the taxable income from trade in Georgia will be taxed at the rate of 1% set for small businesses, and the income received from October 1 until the end of the calendar year – at the rate of 3%.

1% Small business entrepreneurs file tax returns on monthly basis. The small business exemption applies only to income tax and it normally pays other taxes as required by law, including VAT and withholding tax.

Salaries paid by small businesses up to GEL 6,000 during the calendar year are not taxable at the source of payment as a withholding tax if there is one of the following conditions: a) Person was registered as an individual entrepreneur and was granted the status of a small business during the same calendar year; b) Total income received by small business entrepreneur during the previous calendar year does not exceed GEL 50,000.

The following measures of current tax control may be applied to persons with small business status:

• Control procurement of goods / services
• Visual inspection
• Control over observance of rules for using cash registers
• Time study
• Taking inventory

Requirements for entrepreneurs with small business status:

• Keep a special accounting journal, including in electronic form
• Use a cash register when receiving cash
• Use the consignment note when transporting and / or delivering goods
• Losses received during the tax year will not be carried forward to the following year unless a special tax regime is lifted

4. Revocation of the status

1% Tax Rate Small Business Entrepreneur status subject to cancelation if:

5. Obtaining 1% Tax Rate Small Business Entrepreneur status for foreign citizens

A foreign citizen Individuals, who become the resident of Georgia can also obtain the status of a small business. A resident of Georgia during the entire current tax year is a natural person who is actually present on the territory of Georgia for 183 days or more during any continuous 12 calendar months ending in this tax year. Accordingly, foreign citizens can travel abroad, do their business and enjoy the status of a small business if they stay in Georgia for more than 183 days during a calendar year. Of course, we must also take into account the terms of the double taxation agreement and how much it protects us to enjoy the small business status tax benefits.

6. Conclusion

Small Business Status really offers a very significant tax break to individual entrepreneurs in terms of income tax. If an individual entrepreneur exports goods/services abroad and the income received by him is considered as income from a source in Georgia, he will not pay VAT, therefore his income can be taxed at only 1%.

For more information or to get help with obtaining the Small Business Entrepreneur status contact us.

1. Introduction

In order to further improve the business environment in the country, strengthen Georgia’s potential as a regional hub, and increase the interest of multinational international companies, the Government of Georgia allows companies to obtain “Special Trading Company” status and benefit from corporate profit tax.  This status refers to the specific activity, which means the import, and storage in Georgia. Also, it implies subsequent re-export of goods after that.

3. The terms and conditions of granting the status

Note that it is better to apply and get Special Trading Company status at the start of the new year. Because the status is given for the current and future calendar years.

It is possible for a foreign enterprise that carries out economic activities in Georgia through a permanent establishment to additionally register a separate permanent establishment in order to be granted the status of a Special Trading Company and carry out the activities permitted for such an enterprise.

Special Trading Company has the right to:

In addition to the income received from the above activities, Special Trading Company has the right to receive other income. It includes:

Special Trading Company is prohibited:

If buying goods from a Special Trading Company, the cost deductible cannot exceed the customs value of the goods. This restriction does not apply to all expenses incurred by the buyer, which are attributed to the value of the asset under the Tax Code of Georgia and are not related to payments to a Special Trading Company.

Violation of the rules of operation by a Special Trading Company shall result in penalties provided by law:

4. Revocation of Special Trading Company status

The status of a Special Trading Company shall be revoked for the calendar year indicated by the authorized representative of the enterprise in the application for revocation of the status. In addition, the application must be submitted no later than 5 working days before the start of the relevant year.

Within 10 working days after submitting the application for revocation of the status, the tax authority shall issue an individual administrative-legal act on the revocation of the status.

5. Conclusion

Special Trading Company has significant tax benefits. It creates a very attractive business environment for international companies trading in different countries. Georgia has a good location and is at the crossroads of Europe and Asia. Also, it has a free trade agreement with both the EU and China. For companies that intend to export their goods in the region, this status allows them to import, store and distribute their goods in the region.

For more information or to get help with obtaining the Special Trading Company status contact us.

1. Introduction

In order to further improve the business environment in the country, to strengthen Georgia’s potential as a regional hub, and to increase the interest of multinational international IT companies, the Government of Georgia allows companies to obtain “International IT Company” status and benefit from tax breaks. The benefit applies to companies related to the shipping business as well as IT companies. See the Resolution of the Government of Georgia on International IT Company here. 

2. Benefits of International IT Company

“International IT Companies” enjoy the following tax benefits:

3. The terms and conditions of granting the International IT Company status

International IT Company status may be granted to a Georgian enterprise, including a representative of a non-resident enterprise in Georgia if it has at least 2 years of experience in this permitted activity. The list of permitted activities includes:

IT Services:

Commercial and technical services related to the shipowner and/or ship ownership, including:

The above-permitted activities include services provided under a service contract.

A prerequisite for obtaining the status is that the International IT Company operates only within the scope of the above-mentioned permitted activity and has at least 2 years of experience in the activity.

An International IT Company has the right to receive other income other than the permitted activity, however, such income should not exceed 2% of the income from its permitted activity.

In case the company meets all the requirements defined by the legislation, the status is granted on the basis of the application submitted to the Revenue Service and on the basis of the issuance of the relevant ordinance by the Government of Georgia.

4. Revocation of status

The Government of Georgia makes a decision to revoke the International IT Company 1) status on the basis of a person’s application; 2) If the company carries out activities (s) other than those permitted under the status, the income from which exceeds the threshold amount; 3) If the company does not operate from Georgia and does not meet the other requirements of the status.

5. Conclusion

The status of an International IT Company has existed in the Tax Code since 2019, although the list of permitted activities has only been determined by the government since October 8, 2020, hence the tax incentives set out in this section were not actually in effect.

International IT Company status has significant tax benefits, which creates a very attractive business environment for companies, including international companies working in the field of Information Technology and Shipping. This status now aims to bring international IT companies to Georgia, employ Georgian residents, and conduct business from Georgia.

For more information or to get help with obtaining the International IT Company status contact us.

1. Introduction

One of Georgia’s goals is to become an information technology center in the region, and since 2011 the country has been attracting international investment and stimulating the IT business. Even from January 1, 2011 law on information technology zones came into force, changes were made to the tax code and the Government resolution on the procedures and conditions for Virtual Zone IT Company’s status was realized, which sets an important regulatory and tax benefits and attractive environment for export-oriented IT companies.

Let’s explain what a Virtual Zone IT Company means and what benefits these entities enjoy in detail.

Virtual Zone IT Company is a legal entity that carries out information technology activities and has been granted the appropriate status.

information technologies (IT) is defined by law. It means – the study, support, development, design, production, and introduction of computer information systems, as a result of which software products are obtained. It should be noted that the definition of information technology is very broad and combines many activities.

2. Benefits of Virtual Zone IT Company

Virtual Zone IT Company is exempt from:

• Special Regulationsdon't need licenses, permits and other regulatory documents to conduct their activities;
• Corporate Income Tax (15%)tax on the profits earned from supplying outside Georgia the information technologies created by Virtual Zone IT Company;
• VAT (18%)tax on the supply with VAT outside Georgia of information technologies (ITs);
• Export Dutiesexport duties on exporting from the customs territory of Georgia of the information technologies created by Virtual Zone IT Company.

It should be noted that the Virtual Zone IT Company may have other economic activities or operations simultaneously. But it is allowed to use this status only in the field of information technology. The expenses, related to earning income from supplying within or outside of the territory of Georgia the IT developed by a Virtual Zone IT Company, shall be deducted from the gross income in proportion to the share of the income earned from supplying the IT within the territory of Georgia.
Here we also mention one important detail. If a Virtual Zone IT Company incurs certain costs (such as renting an office, hosting, etc. not salary) associated with performing its activities, it can register as a VAT taxpayer and receive and deduct VAT on these costs from other taxes. This is because selling IT services or products outside Georgia are exempt from VAT with the right of deduction. If a Virtual Zone IT Company hires an employee, then tax benefits don’t apply to the salaries paid to him/her and are taxed as usual by 20%.

3. Example

George, who is a programmer incorporated a company and got Virtual Zone IT Company’s status in 2019. George creates/develops computer software with mobile applications and sells licenses outside Georgia on behalf of the Virtual Zone IT Company. A total net profit of 200,000 GEL was generated from the sales in 2019 and fully distributed as a dividend. Due to the fact that by the tax code of Georgia, it is obligatory to register as a VAT taxpayer after the income exceeds 100,000 GEL, and in 2019 the income of the Virtual Zone IT Company exceeds 200,000 GEL, George doesn’t have to register his company and pay VAT. Moreover, it is exempt from corporate income tax, which means that it pays only 10,000 GEL (200,000 * 5%) to the budget and George will receive the net amount of 190,000 GEL revenue as a physical person.

4. The terms and conditions of granting the Virtual Zone IT Company’s status

In order to receive the Virtual Zone IT Company status a candidate must apply to the Ministry of Finance of Georgia. The candidate electronically fills in the application form posted on the website www.newzone.mof.ge, which is sent to the Financial Analytical Service. The list of information-technological projects done during the last three years (if any) should be attached to the application. The Financial Analytical Service is authorized to request additional information regarding the information-technological activities of the candidate. The status shall be granted to the interested entity no later than 10 working days after the application for granting the status.

Virtual Zone IT Company status is issued for life if there is no reason to cancel it.                               

It should be noted, that the status is issued only to legal entities (not to individuals) and doesn’t require any experience. Moreover, it doesn’t require or impose any restrictions on the initial capital, directors, founders, and employees of the enterprise. So you can register a company and then apply for a status immediately. However, of course, having some experience in information technology activities or a contract with a foreign client will make it easier to get a status.

5. Cancellation of Virtual Zone IT Company’s status

The Financial Analytical Service of the Ministry f Finance of Georgia revokes the Virtual Zone IT Company status: a) if the status obtained is used to avoid paying taxes in accordance with the current legislation; b) on the basis of the electronic application, which is sent through the website. In case of revocation of the status, the Financial Analytical Service shall ensure the deletion of the electronic certificate from the Financial Analytical Service website (www.fas.ge).

6. Conclusion

Virtual Zone IT Company has significant tax and regulatory benefits. It creates a very attractive business environment for people working in the field of information technology. The demand for the status is growing over time, and therefore obtaining it becoming more difficult also. If before it was obtained only on the basis of the submission of certain information, today some information needs to be specified and additional documents may be required to submit.

Information technologies in Georgia are not yet so developed that to have significant exports of related services. Therefore the demand for Virtual Zone IT Company status largely comes from foreigners. They can incorporate a company and obtain the status in Georgia remotely, even without coming to the country. For more information or to get help with obtaining a status contact us.

1. Introduction

One of the most privileged and popular statuses among other statuses provided by Georgian tax legislation is the Free Industrial Zone Enterprise (hereinafter “FIZ Enterprise” or ”FIZ Company”). Entities with this status are exempt from almost any taxes and enjoy favorable customs framework. That’s why the temptation and demand for this status are very high, but along with the benefits, it has strict restrictions and conditions to follow as well. The main purpose of this post is to get to know the FIZ Enterprise status more closely and write down the benefits it has. First of all, let’s define the Free Industrial Zone Enterprise.

2. Definition

According to Law of Georgia on Free Industrial Zones a FIZ Enterprise may be an enterprise of any legal structure and any form of ownership registered within a free industrial zone (hereinafter “FIZ Area”) according to enterprise registration norms defined by Georgian legislation.

Free Industrial Zone is the type of a free economic zone envisaged by the “Tax Code of Georgia” where the business-friendly regulations, favorable tax, and customs regulations apply. It is a special territory in Georgia exceeding 10 hectares, with defined borders and a special status granted by law. A free industrial zones are designated for economic activities for a certain period of time, and entities within the zone shall be governed under special economic and legal regime as determined by the Law.

There are five free industrial zones operating in Georgia in the following cities: Poti (sea port), Kutaisi (third largest city) and Tbilisi (capital city):

• Poti Free Industrial Zone
• Kutaisi Free Industrial Zone
• Tbilisi Free Zone
• Hualing Free Industrial Zone
• Tbilisi Technological Park

Activities within a free industrial zone shall be conducted by enterprises registered in that zone. Enterprises registered outside of free industrial zone (both Georgian and foreign) may conduct activities within free industrial zone through permanent establishments registered in that zone, except for Georgian enterprises distributing electricity, water, and natural gas, as well as providing communication and sewerage services and conducting related activities within a free industrial zone.

A free industrial zone enterprise shall conduct activities in other territory of Georgia (outside of free industrial zone) as a permanent establishment of a foreign enterprise.

3. Benefits of Fee Industrial Zone Enterprise

The main privileges of FIZ Enterprises enjoy and which makes it attractive for investors are significant tax exemptions and favorable customs framework, which are as follows:

• Corporate Income Taxes (CIT) (15%) Exempt on dividend distribution;
• Value Added Tax (VAT) (18%) Exempt on exporting and selling goods within FIZ area;
• Dividend Tax (5%) Exempt to act as an income tax agent on paid Dividends;
• Salary Tax (20%)Exempt to act as an income tax agent on paid salaries;
• Interest Tax (5%)Exempt to act as an income tax agent on paid interests;
• Property Tax (1%)Exempt on the properties being within FIZ Area;
• Reverse VAT (18%)Exempt;
• No VAT applies to goods produced in foreign countries which are imported in FIZ;
• No import tax applies to goods produced in other country which are imported in FIZ;
• No VAT applies to the transactions carried out among FIZ entities;
• Export of the goods produced in FIZ within territory of Georgia is free from Customs duty;
• Payment in the free industrial zone can be made in any currency.

The question is, if FIZ Enterprise don’t pay for all this taxes, what taxes does it pay for? Almost no taxes are left with just one or two exemptions, which may be the Income taxes on received services from nonresidents and other Corporate income taxes on operations under tax code of Georgia. For example, if the FIZ Enterprise uses the international shipping, or transportation service from nonresident entities of Georgia it should pay source income tax of 10% in Georgia, or if FIZ Enterprise has no documented expenses it should pay of 15% corporate income tax on these kind of expenses.

Please note that selling of goods produced in Georgia to the FIZ Enterprise is considered to be an export operation for the purposes of the Tax Code of Georgia and are free from VAT. This means that if Georgian entities sell their goods placed in export mode to FIZ Enterprise with proper customs declarations there will not be VAT. Otherwise, if selling of goods are made simply without customs declaration it is not treated as an export operation and will be taxed as usual.

FIZ Enterprise is not considered as a tax agent in relation to paid salary, dividend and interest and does not have to withhold income tax at the source of payment. This does not mean that the beneficiaries receiving these types income are also exempt from income tax. They have to declare these taxes themselves and pay to the budget.

Due to the above-mentioned benefits, utility fees for electricity, gas, etc. are 18% cheaper than in other territory of Georgia which is also important and very attractive factor for businesses.

4. Restrictions of Fee Industrial Zone Enterprise

We have pointed out from the outset that giving so along with so many benefits, FIZ Enterprises has strict restrictions and conditions to follow as well. Let’s first begin with one of the most important issues. There was from the beginning and it is today a record in the Tax Code of Georgia (Article 25) that –

• The FIZ Enterprise may not provide services to a person (other than a FIZ Enterprise) registered under the legislation of Georgia
• The Government of Georgia has the right to determine the types of services to be provided by a FIZ Enterprise to a non-resident (other than a permanent establishment of a non-resident in Georgia), which will be considered as a permitted activity in the free industrial zone by the FIZ Enterprise.

Based on these records, many people thought that FIZ Enterprises would be able to provide services to non-residents for the FIZ Enterprise and would be exempt from taxes. However, in 2020, the Georgian Revenue Service issued a special situational guidance where FIZ Enterprises are not allowed to provide any services because the Government of Georgia has not yet determined the types of services, which could be provided by a FIZ Company. So, we should remember that when we are talking about free economic zones or FIZ Enterprise we imply the production & processing of goods, not providing any kind of services.

The FIZ Company is prohibited from providing any kind of services to both local and non-resident entities (except to FIZ Enterprise within FIZ Area).

The following activities are prohibited within the FIZ Area and therefore for the FIZ Enterprises:

• Hotel and residential buildings;
• Import, storage, production, or/and sale of arms and munitions, defense technology;
• Import, storage, production, or/and sale of nuclear and radioactive substances;
• Import, storage, production, or/and sale of Narcotic and psychotropic substances;
• Import, storage, production, or/and sale of Excise goods (Tobacco products, Alcohol and etc. except for personal use).

A FIZ Enterprises are not allowed to purchase services from a person (other than other FIZ Enterprise) except for:

• Auto-tech services;
• Fast food service;
• Postal service;
• Medical care;
• Advertising services;
• Laboratory services;
• Design, design services;
• Expeditionary services;
• Fire services;
• Examination services;
• Cleaning and waste management services;
• Main equipment repair services
• Security services and/or services related to letting or leasing out property provided by an organizer and/or administration of the Free Industrial Zone;
• Transport, communication, sewage, audit, and/or consulting services, execution of financial transactions and/or delivery of financial services by a licensed financial institution, as well as services relating to installation, assembly, and/or construction of fixed assets;
• In addition to the listed services above, any kind of service, if the total cost of these types of services (s) (excluding VAT) does not exceed 2% of the annual income or expenditure (of its choice) of the FIZ Enterprise.

According to the Tax Code of Georgia (Article 25):

• If a FIZ Enterprise supplies goods to a person (other than a FIZ Enterprise) registered under the legislation of Georgia, the FIZ Enterprise shall pay 4% of the revenue received/receivable from the supply of such goods (if the supply of goods is made free of charge – 4% of the market price of such goods) not later than the 15th day of the month following the month in which the goods are supplied.
• If a person (other than a FIZ Enterprise) registered under the legislation of Georgia supplies goods (other than electricity, water and natural gas intended for local consumption and/or production) to a FIZ Enterprise, the FIZ Enterprise shall pay 4% of the market price of the supplied goods not later than the 15th day of the month following the month in which the goods are supplied.
• If a person (other than a FIZ Enterprise) registered under the legislation of Georgia delivers goods to a FIZ Enterprise, the market price of the supplied goods shall be used for taxation purposes.

FIZ Enterprises are isolated from other ordinary enterprises and are limited to operations with them but not completely. FIZ Enterprise can have an office and a certain part of its staff can work normally outside FIZ Area, but if it has production, it must have within Free Economic Zone.

5. Obtaining Fee Industrial Zone Enterprise Status

A free industrial zone enterprise may be an enterprise of any legal structure and any form of ownership registered within a free industrial zone according to enterprise registration norms defined by the legislation of Georgia.

FIZ Enterprise status is granted by the Georgian tax authorities as a result of the request of an authorized representative of the enterprise. To apply for this status, you have to be a Georgian enterprise incorporated by Georgian Legislation and registered in a free economic zone. To register within FIZ Area you have to contact to Free Economic Zone organizer (The five industrial zones mentioned above are in Georgia today) pay annual fee (which is not so expensive) and get a special license.

The Organizer and/or an administrator shall not be a free industrial enterprise and it must be registered in another territory of Georgia (outside the free industrial zone) as determined by the legislation of Georgia.

6. Conclusion

Georgia has a free trade agreement with the European Union which means that Georgian goods can be exported without tariffs compared to Asian goods. Therefore, the FIZ Enterprise status is a good way to produce and export goods for the EU market.

Many countries, including Georgia, have free economic zones to develop their production and economy. Although Georgia adopted the Law on Free Industrial Zones in early 2007, the Free Industrial Zones have not been as successful as expected. There are several factors and reasons for this. First of all, the tax legislation is already liberal, and it is easy to obtain entrepreneurial licenses and permits in Georgia. Also, there are already successful free economic zones in the region, including neighboring Turkey, which is difficult to compete with. Moreover, according to the law on Free Industrial Zones, an investor leases an object within a FIZ Area and does not have the right to take ownership of the object (for the period for which the Fee Economic Zone was created), which reduces its interest in FIZ Enterprise status. One of the reasons also can be that the Georgian government is not promoting it at the appropriate level.

For more information or to get help with obtaining a status contact us.