Free Zone

What are the benefits?

  • 0% rate on Corporate, Dividend, VAT or even property taxes
  • Simple and remotely accessible registration processes
  • Absence of red tape bureaucracy
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Free Zones in Georgia

Georgian Free zones (Also known as Free Industrial Zones FIZ) are special economic zones created by Georgian government. Companies founded in Free Zones benefit from special treatment in order to foster economic growth in these areas.

In addition to a business-friendly environment, all Georgian free zones provide minimal taxation. All incorporated businesses are entitled to the following benefits:

  • 0% Corporate Tax rate
  • 0% Dividend Tax rate, which essentially means that 100% of profits is repatriable
  • 0% VAT rate on exports from Free Zones as well as between FIZ companies. Even reverse VAT is not applicable.
  • 0% Property Tax rate
  • Multicurrency trade is allowed
  • Companies registered in FIZ are not required to handle employee personal income tax. Employees, on the other hand, serve as tax agents and must disclose and pay their own taxes.
  • *NOTE: If items are exported to non-Free Zone territory in Georgia, a tax of 4% of the invoice value is levied.
  • **NOTE: The tax advantages of enterprises registered in a Free Zone apply only to the trade of products, and only if the items physically arrive in the zone and are delivered from there to end customers. These benefits do not apply to services, thus opening an individual entrepreneur in Georgia with small business status is a preferable alternative.

In addition to the aforementioned, there are non-tax advantages:

  • Lower electricity and other utility costs
  • Easier and, if preferred, remote registration procedure
  • No minimum share capital requirements
  • No restrictions on foreign ownership of the firm
  • Reliable infrastructure, and even turn-key solutions.
  • There are no construction permission fees.

What is the procedure?

  1. Remote or in person incorporation of an entity in a Free Zone
  2. Acquiring a license from Free Zone Administration
  3. Finding a suitable rental space for business operations (If applicable). Virtual office option is also available

To do business in a free zone, all you need is a license granted by the Free Zone Administration and incorporation in a Free Zone. Depending on the nature of your business, you may require an appropriate renting area.

Company Registration in Georgia is Easy

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Tbilisi Free Zone

Georgian Free Zones – Four Options

Tbilisi Free Zone (TFZ) – Georgia’s newest free zone in the east with a strategic location near Tbilisi, airport, and crypto data centers. Slightly more expensive, but attractive for expanding businesses.

Hualing Kutaisi Free Zone (HKFZ) – Located in the geographical center of Georgia, HKFZ was established in 2015. The zone offers cheaper rates and has available ready-made buildings. Although it is not as close to the port or main airport, it still offers an advantage with its proximity to Kutaisi airport.

Kutaisi Free Zone (KFZ) – Kutaisi Free Zone has been operating since 2009 on the site of the former Kutaisi Auto Plant, located near Hualing KFZ. The zone offers cheaper, ready-made solutions and aims to attract export-oriented enterprises. Although undergoing transformations in recent months, KFZ is expected to resume normal operations soon.

Poti Free Industrial Zone – established in 2007 with the UAE support, is the oldest of four free zones. The zone offers a large area, convenient access to the main port in the Caucasus, and comprehensive services. However, it may be a bit pricier than other alternatives.

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