Unlocking Opportunities: Why International Tech Businesses Should Choose Georgia
December 13th 2023
Georgia at a Glance
Nestled between Europe and Asia on the historical Silk Road, Georgia stands as a strategic crossroads of cultures and economies, offering an enticing blend of tradition and innovation. Here's a quick look at key factors that make Georgia an ideal destination for international technology businesses.
Strategic Location
- Capital: Tbilisi
- Area: 69,700 sq km
- Climate: Diverse, with low humidity and dry air
- Population: 3,729,500
- Currency: Lari (GEL)
- Language: Georgian; Abkhaz in the Autonomous Republic of Abkhazia
Business-Friendly Environment
Georgia boasts a dynamic business environment, ranking No. 7 in the World Bank's "Ease of Doing Business Index" in 2020, thanks to favorable taxation policies. The country offers easy access to major global markets, with free trade agreements covering 2.3 billion consumers.
Skilled Workforce
- Young Workforce: 50% of the unemployed population is aged 20-34
- Language Skills: Fluent English speakers, proficiency in German
- Flexibility: No social tax, flexible labor code
- Average Monthly Salary: USD 410
Education and Skills Development
With 62 higher educational institutions and 66 professional education centers, Georgia ensures a constant flow of high-quality professionals. The government promotes vocational education, financing course fees to create a skilled talent pool for businesses.
Visa Information
Georgia offers a welcoming visa regime, allowing citizens of 98 countries to stay visa-free for a year. The E-visa portal streamlines the visa application process for tourism and business purposes.
Economic Overview
Georgia's resilient economy demonstrates growth rates, reaching 10.4% in 2021. The country's liberal free trade agreements and foreign-friendly policies make it an attractive destination for foreign direct investment (FDI). With a strategic location and stable political environment, Georgia is a gateway to the Caucasus and broader European and Asian markets.
Foreign Direct Investment
Georgia's stable political environment, free-market economy, and preferential free trade agreements contribute to its No. 7 ranking in the "Ease of Doing Business Index." The country attracts FDI, with inflows exceeding $1.3 billion before the pandemic, rebounding to close to $1.2 billion in 2021.
Free Trade Agreements
Georgia's liberal trade regimes, including agreements with the EU, EFTA, China, and CIS countries, offer investors access to a vast market. The country's efficient customs policies and accessibility contribute to a swift 15-minute average clearance time.
Legal Landscape
Recognized for consistent reforms, Georgia maintains a business-friendly climate with flexible legislation. The Association Agreement with the EU, signed in 2014, aligns Georgian regulations with EU standards, further integrating the country into the European Union common market.
Taxation
0% or 15% Corporate Profit Tax
20% Personal Income Tax
18% Value Added Tax (VAT)
0%, 5% or 12% Import Tax on few selected goods
Excise Tax up to 1% Property Tax
However, at GIC we are able to offer eligible Tech Companies even further reduced tax rates, which you can explore here!
According to World Bank Group, Georgia Ranks as the 3rd Least Tax Burdened Country in the World, with 9.9% Total Tax Rate
Conclusion
Georgia, with its strategic location, skilled workforce, business-friendly environment, and commitment to innovation, presents a compelling opportunity for international technology businesses. As the world turns its attention to this emerging tech hub, Georgia stands ready to welcome the pioneers of the future. Explore the thriving business landscape of Georgia and be part of a success story defying global economic challenges.
Read more about Georgia's economic prosperity and investment climate in Bloomberg's article:
"How Georgia’s Economy Is Defying the Global Downturn."
Nestled between Europe and Asia on the historical Silk Road, Georgia stands as a strategic crossroads of cultures and economies, offering an enticing blend of tradition and innovation. Here's a quick look at key factors that make Georgia an ideal destination for international technology businesses.
Strategic Location
- Capital: Tbilisi
- Area: 69,700 sq km
- Climate: Diverse, with low humidity and dry air
- Population: 3,729,500
- Currency: Lari (GEL)
- Language: Georgian; Abkhaz in the Autonomous Republic of Abkhazia
Business-Friendly Environment
Georgia boasts a dynamic business environment, ranking No. 7 in the World Bank's "Ease of Doing Business Index" in 2020, thanks to favorable taxation policies. The country offers easy access to major global markets, with free trade agreements covering 2.3 billion consumers.
Skilled Workforce
- Young Workforce: 50% of the unemployed population is aged 20-34
- Language Skills: Fluent English speakers, proficiency in German
- Flexibility: No social tax, flexible labor code
- Average Monthly Salary: USD 410
Education and Skills Development
With 62 higher educational institutions and 66 professional education centers, Georgia ensures a constant flow of high-quality professionals. The government promotes vocational education, financing course fees to create a skilled talent pool for businesses.
Visa Information
Georgia offers a welcoming visa regime, allowing citizens of 98 countries to stay visa-free for a year. The E-visa portal streamlines the visa application process for tourism and business purposes.
Economic Overview
Georgia's resilient economy demonstrates growth rates, reaching 10.4% in 2021. The country's liberal free trade agreements and foreign-friendly policies make it an attractive destination for foreign direct investment (FDI). With a strategic location and stable political environment, Georgia is a gateway to the Caucasus and broader European and Asian markets.
Foreign Direct Investment
Georgia's stable political environment, free-market economy, and preferential free trade agreements contribute to its No. 7 ranking in the "Ease of Doing Business Index." The country attracts FDI, with inflows exceeding $1.3 billion before the pandemic, rebounding to close to $1.2 billion in 2021.
Free Trade Agreements
Georgia's liberal trade regimes, including agreements with the EU, EFTA, China, and CIS countries, offer investors access to a vast market. The country's efficient customs policies and accessibility contribute to a swift 15-minute average clearance time.
Legal Landscape
Recognized for consistent reforms, Georgia maintains a business-friendly climate with flexible legislation. The Association Agreement with the EU, signed in 2014, aligns Georgian regulations with EU standards, further integrating the country into the European Union common market.
Taxation
- 6 FLAT TAXES
- 3RD LEAST TAX BURDEN COUNTRY, WITH 9.9% TOTAL TAX RATE (WORLD BANK GROUP)
- SPECIAL FAVORABLE TAX REGIMES
- 0% TAX ON REINVESTED PROFIT
- NO SOCIAL SECURITY TAX
0% or 15% Corporate Profit Tax
20% Personal Income Tax
18% Value Added Tax (VAT)
0%, 5% or 12% Import Tax on few selected goods
Excise Tax up to 1% Property Tax
However, at GIC we are able to offer eligible Tech Companies even further reduced tax rates, which you can explore here!
According to World Bank Group, Georgia Ranks as the 3rd Least Tax Burdened Country in the World, with 9.9% Total Tax Rate
Conclusion
Georgia, with its strategic location, skilled workforce, business-friendly environment, and commitment to innovation, presents a compelling opportunity for international technology businesses. As the world turns its attention to this emerging tech hub, Georgia stands ready to welcome the pioneers of the future. Explore the thriving business landscape of Georgia and be part of a success story defying global economic challenges.
Read more about Georgia's economic prosperity and investment climate in Bloomberg's article:
"How Georgia’s Economy Is Defying the Global Downturn."
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