Business in Georgia

Why Georgia is One of the Most Attractive Places to Do Business

Over the past decade, Georgia has emerged as one of the world’s most attractive destinations for entrepreneurs, investors, and digital professionals. Known for its business-friendly climate, strategic location, and streamlined administrative processes, Georgia offers a unique gateway to both European and Asian markets. Whether you're looking to relocate, establish a company, or manage international operations from a strategic base, Georgia provides an ideal environment for global-minded entrepreneurs.

A Low-Tax Destination With a Territorial Tax System

Georgia operates under a territorial tax system—the only one of its kind in Europe. This means that Georgian tax residents are only taxed on income sourced within Georgia. If your income originates from outside the country—such as dividends, rental earnings, royalties, or business revenues—you won't be taxed locally.

This is a significant advantage for:

• Digital nomads and remote entrepreneurs offering global services

• E-commerce business owners

• Content creators, influencers, and freelancers paid by international clients

• Investors and individuals earning income from abroad

In short, Georgia is an incredibly welcoming destination for anyone with foreign-sourced passive income.

A Streamlined, Flat-Rate Tax System

Georgia’s simplified tax framework is another compelling reason to consider doing business here. With only six flat tax rates, both businesses and individuals enjoy a transparent and highly optimizable tax environment:

• Corporate Income Tax (CIT): 15%, applied only on distributed profits. Reinvested or retained earnings are tax-free.

• Interest, Dividends, and Royalties: 5% (taxed upon distribution only)

• Value Added Tax (VAT): 18%

• Payroll Tax: 20%

• Rental Income Tax: 5% for residential properties

• Property Tax: 1%

• Import Duties: 0%, 5%, or 12%, depending on product category

Thanks to the territorial taxation policy, individuals with a Georgian tax residency are not liable for taxes on foreign-earned income.

Tailored Tax Incentives for Freelancers, Startups, and International Companies

Georgia offers a suite of legal and fiscal setups designed to suit a wide range of business needs:

• Individual Entrepreneur & Small Business Status: Perfect for freelancers and solo entrepreneurs. Enjoy a reduced tax rate of just 1% on turnover up to 500,000 GEL annually. Earnings beyond that threshold are taxed at only 3%.

• Limited Liability Company (LLC): The most common and flexible business structure. No minimum capital is required, and foreigners can own 100% of the company. Reinvested profits remain untaxed.

• IT Virtual Zone Company: Ideal for IT companies serving international clients. Eligible businesses enjoy 0% CIT, 0% VAT, and just 5% tax on dividends.

• International Company Status: Tailored for tech, logistics, and maritime firms. Companies benefit from a reduced CIT of 5%, wage tax of 5%, and dividend tax of 0%.

• Free Industrial Zones (FIZ): These special zones provide a tax-free haven: 0% CIT, 0% VAT, and 0% on dividends for companies operating within these areas.

Labor and Administrative Simplicity

Georgia's liberal labor laws and low wage costs make it an appealing destination for businesses of all sizes. With an average monthly salary around $630, companies can scale while keeping overheads low. Additionally, the bureaucracy is minimal, accounting is highly simplified, and public administration is supportive and efficient.

Banking and Financial Services You Can Rely On

Georgia’s banking system is among the most advanced and reliable in the region. Opening a business or personal account is quick and straightforward. Currency accounts are available in GEL, USD, EUR and GBP and remote banking is widely accessible.

Live and Work in Georgia Visa-Free for One Year

Citizens from 95 countries, including the EU, UK, USA, Canada, and the UAE, can enter and stay in Georgia visa-free for up to 365 days. During this time, foreigners are free to work, start a business, or explore investment opportunities.

Strategic Location and Free Trade Agreements

Georgia’s geographical position makes it a natural bridge between Europe and Asia. As part of the modern Silk Road, it continues to invest in its logistics and infrastructure to support trade and connectivity. Through a broad network of free trade agreements, Georgia offers duty-free access to a market of over 2.3 billion consumers.

Key agreements include:

• The Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU

• GSP (Generalized System of Preferences) with the USA, Canada, and Japan

• Free trade with China, Turkey, the CIS countries, and EFTA members (Switzerland, Norway, Iceland, Liechtenstein)

Georgia’s Booming Tourism Industry

Tourism is one of the most dynamic sectors in Georgia. From just a few hundred thousand visitors a decade ago to 5.4 million in 2024, the sector has shown exponential growth—generating $4.4 billion in annual revenues. Ambitious government plans aim to attract 11 million international visitors by 2031, doubling the sector’s contribution to the economy.

If you're considering investing in the tourism or hospitality sector, Georgia presents enormous opportunities—especially in emerging resort destinations like Batumi, Anaklia, Bakhmaro, Gudauri, and the capital, Tbilisi.

Real Estate: A Profitable Investment Avenue

Thanks to unrestricted foreign ownership, low property taxes, and rapidly growing demand, Georgia’s real estate sector is booming. Investors are drawn to beachfront developments in Batumi, alpine resorts in Gudauri, and the cosmopolitan energy of Tbilisi. Notably, real estate investment can also qualify you for a Georgian residence permit.

A Safe and Free Society with Transparent Governance

Georgia is ranked among the safest countries globally and enjoys high marks for economic freedom and transparency. The country has made substantial strides in fighting corruption, reforming public institutions, and promoting freedom of expression. All these factors contribute to a stable and predictable business environment.

Ready to Launch Your Business in Georgia?

At Kartvelite, we specialize in helping entrepreneurs, investors, and remote professionals establish themselves and succeed in Georgia. From company formation to banking, real estate, and residency, we offer tailored solutions to make your transition seamless.

Contact us today and let’s build your future in Georgia.