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.

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