Doing Business In Georgia Country:
Ranks 8th For The Ease Of Doing Business
Doing business in Georgia Country has become one of the biggest attractions. Georgia ranks at the top of many international indices, such as the World Bank’s Ease of Doing business. Georgia is considered one of the most business-friendly and open countries globally. Georgia is an attractive destination, whether as a place to live, invest, or as a basecamp to conduct business locally or internationally.
Doing business in Georgia Country benefits from a territorial tax system and low taxes for individuals and companies. The absence of bureaucracy and the efficiency of the Georgian banking system are other advantages entrepreneurs appreciate for doing business in Georgia.
Moreover, Georgia, bathed by the beautiful scenery of the Black Sea, has become an exceptionally dynamic tourist destination. Millions of people visited this almost unknown jewel a few years ago.
Georgia Ranks 8th For Its Ease Of Doing Business.
Georgia ranks 8th in the World Bank’s 2020 Ease of Doing Business report. For ten years now, most reforms implemented in Georgia have been oriented towards developing a free, open, and transparent business environment led by the private sector. Georgia has simplified its bureaucracy drastically to create and manage a business in Georgia.
- Starting a Business in Georgia :1 day vs. 9,2 days in OECD High-Income Countries (Average)
- Registering a Property 1 day vs. 23,2 days
- Getting Construction Permit 63 days vs. 152,3
- Georgian Administration is very accommodating, and accounting is ultra-simplified.
Doing Business in Georgia Country: The Only Territorial Tax System In Europe
Georgia is the only European country with a territorial taxation regime. It means Georgia will tax Georgian residents only their Georgian-source income. Therefore, Georgia does not tax worldwide income. If you have a tax residence in Georgia, Georgia will not tax your rental income, dividends, foreign capital gains, and All your foreign-sourced Passive Incomes.
Doing Business in Georgia Country benefits Passive Income Earners.
- If you receive Airbnb incomes abroad.
- If you are a Digital Nomad and Digital Entrepreneur who sells services and products worldwide.
- E-commerce business owners.
- Traders and crypto-traders.
- Influencers who receive income from the brands they support.
- Royalties owners
The list is non-exhaustive. All foreign-sourced passive income can benefit from Georgian territorial taxation.
Only 6 Flat Tax Rates Highly Optimizable To Increase The Ease Of Doing Business In Georgia Country
Georgia Low-Tax Country ranks 8th among the lowest-taxed country worldwide, both for companies and individuals. Georgia has a flat rate tax system: the tax rate doesn’t depend on the amount of income the taxpayer receives, but the same rate applies to all taxpayers.
- 15% Corporate Income Tax. CIT applies only to distributed profits. Retained or reinvested profits are not taxed. Read More about CIT here.
- 5% Tax on interest, dividends, and royalties (not due until the distribution occurs)
- 18% VAT
- 20% Tax on employees’ salaries.
- The import of goods is taxed at 0%, 5%, and 12%, depending on the product category. 1% Property Tax
- 5% Tax on residential property rental income.
- Georgia does not tax individual foreign-source income thanks to its territorial tax system. Read More about Personal Income Tax here.
Incredible Tax Incentives For Doing Business In Georgia Country
This jurisdiction provides highly beneficial tax incentives for doing business in Georgia country or From your Georgian base camp. For individuals, investors, and companies operating in the country, Georgia offers an incredibly welcoming business-friendly environment. Foreigners can own a company in full, and the incorporation is painless. Doing business in Georgia Country becomes fun with these incredible Georgia tax incentives.
Individual Entrepreneur & Small Business Status
Designed for Freelancers and Individual Entrepreneurs, the Small Business Status offers incredible tax advantages for doing business in Georgia and From Georgia. Suppose your gross annual turnover does not exceed 500,000 GEL; you only pay a 1% tax! Suppose your yearly gross turnover exceeds 500,000 GEL; you only pay a 3% tax!
Georgian Limited Liability Company
The Limited Liability Company is Georgia’s most common form of legal entity. Easy to manage, no minimum capital investment is required, and foreigners can own an LLC fully. LLC benefits 15% CIT, 5% Dividends, and 0% if profits are retained or reinvested.
Virtual Zone Person
Also known as the “Information Technology Zone,” this special status allows a Georgian LLC, whose activity is related to IT, to benefit from 0% CIT, 0% VAT, and 5% Dividends. Only 1 rule: Doing business outside Georgia. Indeed the IT company must provide its services and products to its clients abroad.
International Company Status
International Company Status brings interesting advantages for doing business in Georgia country. IT-related, logistics, and shipping companies benefit from CIT 5% (instead of 15%). Wage Tax 5% (instead of 20%). Dividend Tax 0% (instead of 5%). Read More about the International Company Status here.
Free Zone Company, The Power of Zero
Doing business in Georgia country and paying 0 taxes it’s possible! The Free Industrial Zone will offer unmatched tax advantages to investors. 0% CIT 0% Dividends 0% V.A.T.
Doing Business In Georgia Country: Many Other Advantages
- The labor legislation is very liberal and offers flexible employment conditions and competitive salaries. (average monthly salary of USD 450).
- Georgia enjoys a cheap energy price.
- Georgia is a financial hub. The Georgian banking sector is ultra-modern and reliable.
- 6th Safest Country in the World (Numbeo Crime Index 2020)
- Georgia is ranked 12th in the Index of Economic Freedom 2020
- The media are free, and Georgia’s freedom of expression is a fundamental right.
- In addition to being recognized as one of the top reformers in the World, Georgia is the region’s leader in the fight against corruption. Doing business in Georgia is easy and safe. According to Transparency International’s International’s Global Corruption Index, Georgia is perceived as a corruption-free destination.
Doing Business In Georgia For A Full Year Thanks To A Visa-Free Regime
- Visa-Free Regime with more than 100 Countries, including the European Union, North America, and the United Arab Emirates. You can live in Georgia for one year without any restrictions. A foreigner can work or set up a business in Georgia.
A Strategic Location For Doing Business In Georgia
As a gateway between Europe and Asia and a strategic passage for exchanging goods, Georgia’s economy is highly integrated into these major international markets/ Being on the new Silk Roads, Georgia is intensively developing its transportation infrastructure.
Thanks to its extensive Free Trade Agreements network, Georgia has access to a market of 2.3 billion consumers without any customs duties.
Georgia signed in 2014 a Deep Comprehensive Free Trade Agreement with the EU and a GSP Agreement with the United States, Canada, and Japan.
Free trade regimes are also in force with China (including Hong Kong), Turkey, CIS Countries, and EFTA countries (Iceland, Norway, Switzerland, and Lichenstentein).
One Of The Most Dynamic Tourist Destinations Globally
Tourism in Georgia is one of the fastest-growing sectors of the local economy. Thanks to the visa-free Regime, the number of international travelers has grown steadily over the past five years, reaching a new record of 4.2 million international visitors in 2019. Generating revenues of 3.7 billion USD, x5 during 2008-2019.
The tourism sector has a high potential for further development. To foster this development, Georgia invests heavily in developing transportation and infrastructure and creates new tourism destinations. Georgia is forecast to welcome 7.6 million visitors by 2027 and 11 million by 2031, with annual revenues reaching 7.6 billion USD. Doing Business In Georgia, in the tourism industry, is currently one of the best investments.
Doing Business In Georgia Country, A Hot Spot For The Hospitality And Real Estate Sector
In recent years, the number of visitors to Georgia increased significantly, contributing to other tourism-related sectors, particularly the real estate sector. The absence of restrictions on foreign ownership, affordability, and tax incentives allows investors to consider various profitable real estate investment opportunities, such as the fashionable Batumi Black Sea resort, the new winter sports resort of Gudauri, and Tbilisi, Georgia’s capital city.
Real estate investment in Georgia also qualifies for a residence permit.
Read our pages to learn more:
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