Video Invest in Georgia
What does business mean in Goergia? It is easy to do business? How important is Georgia location? How is the Georgian workforce? Why you should consider Georgia?
Georgia, located at the crossroads of Europe and Asia, has emerged as a stable and attractive destination for business and investment. Through comprehensive reforms, reduced tax burdens, and long-term investment, Georgia has positioned itself as a beacon of stability in an uncertain economic landscape.
The ease of doing business in Georgia is a key factor in its appeal. The country boasts a liberal tax system and labor code, with a total business tax and contribution rate of just 9.9% of profits, one of the lowest rates in the world. Retained and reinvested profits are exempt from tax, and there is no social security tax. Personal income tax is set at a flat rate of 20%. Registering a company can be done in as little as one day, making Georgia one of the most efficient places globally for starting a business.
Georgia's economic growth has also caught the attention of rating agencies. S&P recently awarded Georgia a BB rating, citing its impressive GDP growth of 10.4% in 2021. The agency further predicted an annual growth rate of 4% to 5.5% for 2022 and 2023. The country's strategic location places it at the heart of a market of 2.3 billion consumers, thanks to an extensive network of free trade agreements (FTAs) with the EU, China, the UK, and other countries. This advantageous position makes Georgia an ideal gateway for businesses looking to access Central Asia and establish trade connections between Europe and the East.
The logistics sector in Georgia presents significant investment opportunities. The Baku-Tbilisi-Kars (BTK) rail project, connecting Turkey to the European rail network via the Caspian Sea, has enhanced Georgia's position as a transit point. The country provides a crucial trade route for landlocked Central Asian countries, facilitating the transportation of minerals, machinery, and equipment. The operation of the first train carrying goods from Turkey to China on the BTK railway in December 2021 further strengthens Georgia's role in the region.
Georgia's free industrial zones (FIZs) in key centers such as Tbilisi, Kutaisi, and Poti offer a favorable environment for manufacturing companies. These zones provide low-tax incentives to support investors and foster growth in the manufacturing sector.
In addition to its business-friendly environment, Georgia benefits from access to a talented workforce. The government's well-organized and business-oriented approach, coupled with low levels of bureaucracy and a simple taxation system, further enhances the country's appeal as a destination for businesses and investors.
With its strategic location, favorable business climate, and investment opportunities, Georgia continues to position itself as a trusted destination for business and investment, attracting companies from around the world seeking stability, growth, and access to vast markets.
A pleasure doing business in Georgia.