Georgia is a country on the shore of Black Sea, located at border line between Europe and Asia. From historic and cultural perspective, it’s thought as belonging to eastern Europe. Already Soviet Union Republic, borders to north and north-east with Russia, to south with Turkey and Armenia, to south-east with Azerbaijan, to west with Black Sea. Its population is of 4.989.000 people and its capital is Tbilisi.

The capital Tbilisi is the most populated city of the country, the only one to overcome 1 millions of inhabitants. Other cities, but less populated, are: Kutaisi, the second city in the country with 200.000 inhabitants, Batumi, near the Turkish border, and Rustavi, the first Georgian city to host a metallurgical industry. The remaining cities do not reach 100.000 people.

According to the data of “International Transparency” in the world index on corruption, Georgia tax haven is at the top of classification (among the less corrupt countries), near Spain and above South Korea. Furthermore, it is at the seventh place in the world for the opening speed of new companies, after Australia and Singapore.

Personal income tax is of 20%. Then, in case of foreign incomes no taxation is required. For people whose income is less than 12.000 per year there is total exemption.

For natural persons there is a flat tax to 20% and a territorial tax system with exemption for foreign incomes. For company income there is also a flat tax of 15% but no exemption for foreign incomes. This means that the company resident in Georgia pays taxes on incomes produced anywhere in the world. In Georgia the dividends are not to be paid at all if devoted to local entities. Yet they’re not included in the taxable income. Anyway, taxation is very low, around 5%. Then there is VAT value: 18%, a bit lower than European average.

Open a bank account abroad, both personal and business, is very easy and quick. In fact, Georgia hosts many foreign companies’ accounts. From 2005 there has been a progressive change in its tax system that has simplified its mechanisms and decreased the number and rates of taxes. From this moment on, Georgian economy has gone extremely positive.

Tax	Value
Corporate income	15%
Personal income	20%
VAT	18%
Importation	0% – 5% – 12%
Axcise	Few goods
Property tax	Up to 1%

Georgia is a low-tax country and with a transparent tax system. Tax and customs systems are unified under the same tax code and tax exemption as well as supervision are managed by National Tax Service. All the procedures of tax administration and clearance are online. Personal income tax for interests, dividends and royalties is only of 5%. In Georgia there is not taxation on: paycheck, social security, capital gain, patrimony or heritage. According to free trade Law, the government cannot increase national taxation (except for excises) or the number of taxes without holding a referendum. Georgia tax haven has adopted treaties with 47 countries against double taxation. The country has no restrictions about currency convertibility or the return of capitals and profits.Georgia has no tariff as well as non-tariff barriers. The conclusion of Free Trade Agreement with UE will progressively lead to the dismantling of existing tariff barriers among the exchanged goods.

In Georgia you find four Industrial Free Zones, expected from Georgian tax code in favor of friendly-business norms and a favorable customs and tax regime. They are operative in the following cities: Poti (maritime port), Kutaisi (the third biggest city), and Tbilisi (the capital). The enterprises registered in the free zones benefit from the following tax exemptions:

An enterprise exporting goods in the free zone is exempted from any taxes, with the exception of personal income tax (20%), paid for the employed people.
An enterprise importing goods in the free zone or elsewhere in Georgia, in addition to the personal income tax, is supposed to pay VAT at 4% on domestic sales incomes.

All the free zones are managed by private companies and the investors are supposed to rent a space from FIZ operator:

1 – Poti FIZ managed by Rakia Georgia FIZ LLC
2 – Kutaisi FIZ #1 managed by Georgia International Holding (LLC Fresh Georgia)
3 – Kutaisi FIZ #2 managed by da Hualing Group
4 – Tbilisi FIZ managed by Tbilisi Free Zone JSC (Controllato dal gruppo BitFury)

Poti Industrial Free Zone is the first one created in the country. It is owned by RAKIA Georgia Free Industrial Zone LLC founded by RAK Investment Authority (RAKIA), operative since 2011. Extended over an area of 3 million square meters, the major part of this zone is suitable for industrial and logistic activities and can host companies working both in the light and heavy industry (including chemical and metal processing).

With its strategic position along the new Silk Road (connected by sea, railway, highway, to international and regional networks), placed between Black Sea and Caspian region, PFZ has a main role in the country. The closeness to Poti port makes the zone appealing for potential investors. For the companies working in this zone there is total tax exemption as: importation, VAT, company profit, dividends, property tax, personal income.

Moreover, in this area you can also have registration of “turnkey” companies. Within it you can carry out activities like: production, trade, storage, consultation service, business support, financial services including banking activity, logistics, building.

Thus, the following legal entities can be registered: Limited Liability Company, general partnership, limited partnership, SPA. Infrastructures of the area are well developed. There are competitive prices for land rent, electricity and water, surveillance 24 hours a day, standard storage magazines, infrastructural and firefighting systems, administrative services as secretary and interpretation, two customs offices open 24 hours a day.

On October 2015 in Georgia Tax Haven has been opened a new free industrial zone – Hualing Kutaisi Free Industrial Zone (KFZ), located in Kutaisi city and extended over a surface of 36 hectares. Supported by Georgian government, the memorandum between Hualing Group and Georgia Ministry of Economy and Sustainable Development has already been signed in 2009, but the status of free zone has been reached only in 2015. KFZ is located in a strategic point of the country: 100 km far from Poti port (Black Sea), 160 from Batuni’s, with direct access to the main highway of the country, to railway, and very close to Kutaisi international airport: all elements to become an industrial, logistic and commercial first level platform in the country.

Currently companies with different kinds of business activities work in KFZ: processing of wood and stone, production of furniture, mattresses and building materials. Open 24 hours a day and with an autonomous customs clearance section, KFZ main strengths are: wide choice of buildings, leasing unique tariffs, simple and cheap business operations, qualifies and low-cost labor force.

Most of infrastructures have been completed, and KFZ offers the companies readymade lands and buildings, for storage or industrial use. In line with Georgian Law, KFZ offers many fiscal advantages for companies registered in the Zone, like: tax exemptions for profits and properties, for dividends, VAT, import export duties.

Business man
E-Commerce
Consultants
International companies

Intellectual property rights
Custody of movable properties and real estates
Inheritance purposes
Stockbrokers/forex