• English
  • Русский
  • العربية

Telegram_logo
Get in touch

Free Zones and Taxation in Georgia

Taxation regime in georgian free zones and incorporation process

Contact

Our experts answer all your questions.

Tbilisi River

Georgian Free Zones

There are four free zones in Georgia, all established by Georgian law in free industrial zones. There are some headline advantages shared by all of the free zones along with some unique terms and services.

Advantages shared by all four include:

  • 0% Corporate Tax Rates
  • Virtual Office Services
  • No minimum capital/investment requirement
  • 100 % foreign ownership allowance
  • 100% profit repatriation
  • Remote registration services
  • Low Cost Electricity

Taxation In Free Zones​

All corporate taxes payable by the company amount to 0% in free zones, which means that the profit you earn remains untouched, and you can easily transfer it from your corporate bank account to your personal account.

This chart provides a basic comparison:

Taxes in Georgia For a Mainland Company For a Free Zone Company
VAT 18% 0%
Corporate Profit Tax 15% 0%
Tax on Dividend Withdrawal 5% 0%
Property Up to 1% 0%
Import 12% / 5% / 0% 0%
Export 0% 0%
Personal Income Tax20%20%

Free Zones

Free Zones Overview

Hualing Kutaisi Free Zone

The Hualing Kutaisi Free Zone was established in October 2015. It is located in Central Georgia, 90 km from a sea port and 19 km away from an international Airport.

The Hualing Kutaisi Free Zone was established in October 2015. It is located in Central Georgia, 90 km from a sea port and 19 km away from an international Airport. The main advantage the Hualing Free Zone enjoys over other local free zones is widely available ready made buildings. Moreover, it is the most cost efficient free zone in Georgia.

Hualing Kutaisi Free Zone
Poti Free Zone

Poti Free Industrial Zone

The Poti Free Industrial Zone is the oldest free zone in Georgia. It was established in 2007 by the UAE-based large group Rakia. The fact that it is located at a sea port is very convenient logistically.

It is also 10 times larger than other Georgian free zones and is a good place for large industrial projects requiring high volumes of raw materials.Moreover, it is the most cost efficient free zone in Georgia.

Tbilisi Free Zone

The Tbilisi Free zone is Georgia’s newest free zone. Apart from the common advantages enjoyed by all of the free zones, the Tbilisi free zone is focussed on the crypto-mining industry, and one of the largest data centers is located there.

Tbilisi Free Zone
Kutaisi Free Zone

Kutaisi Free Zone

The Kutaisi Free Zone was established in March 2009 on the territory of the famous Kutaisi auto plant. The land plot of 27 hectares is located only 10 km from the Kutaisi International Airport, 95 km from the Poti seaport, and 210 km from Tbilisi.

The Company is focused on attracting international companies-tenants to carry out their export-oriented business activities in a tax-free zone. They welcome companies operating in various business sectors: technology, trade and services, light industry, logistics, warehousing, etc. The Holding provides flexible lease terms and an individual approach to each tenant company.

Apart from the above-mentioned differences, free zones also charge different rates for their services.

Benefits

What Is Included In Free Zone Client Licenses?

International Trading

Industrial

Service

E-commerce

Consulting

Financial Services

Note: Prior to starting to work in a free zone, it is important to choose the right industry and acquire the relevant license from the free zone in order to avoid unnecessary expenditures and even significant fines.

Notes

Important notes on Free Zones

It is important to fully understand your options before deciding how to establish your company’s presence in a Georgian Free Zone:

4 % tax with Georgia mainland

A Virtual Zone IT company in Georgia offers tremendous tax incentives. Your company pays only 5% tax on dividends.

However, without a proper working plan, taxes for your company may increase significantly. Services you purchase from abroad can increase your exposure to taxes by up to 33%. To avoid unpleasant surprises all you need is to get a proper working plan in advance.

Banking in Georgia – Mission Impossible

If you are considering having a company with a virtual office in the free zone, don’t look for banking services in a Georgian bank.

Georgian banks haven’t been working with Free zone companies for more than a year now. Fortunately, we are able to offer different jurisdictions able to take the place of Georgian banks.

Some activities are not exempt from taxes in free zones

There are a number of activities and industries for which tax exemptions do not apply. These are primarily businesses connected to selling services instead of actual goods. Contact us for a free initial consultation on the whole process.

From our side, we will ensure that your Georgian Free Zone company develops successfully and without obstacles. We suggest the best options for your business, and do all of the legwork for you.

Get in touch

Free first consultation
Local & remote support
We answer within one hour
4.9
218+ ratings on Google

Step by step

Free Zone incorporation process

The process of incorporation differs slightly from that required for setting up a mainland company. LLC is the most common form of ownership in Georgian free zones. Setting up an LLC in any of the free zones in Georgia requires 4 simple steps and two working days for registration. 
The procedures are as follows:

1

Application form

We start by filling out a simple application form that contains basic information about your future company and your needs.
2

Company registration

Once we have an application, we apply for company registration. This takes a maximum of one working day.
3

Bank account

The next day, once the company has been registered, we assist you in opening a bank account in multiple banks, in multiple jurisdictions, and in multiple currencies.

Your company is ready

The same day, after opening a bank account, we issue an invoice, and you pay for our service. At the same time, the free zone issues you an operating license.

Meet your service partners

We are ready to answer all your questions and assist you during your journey in Georgia.
Get in touch
  • Eka Lekishvili Photo

    Eka Lekishvili

    Client Manager

    Bringing nearly two years of experience as a corporate lawyer in the financial sector, Eka specializes in tax law, focusing on exceptional tax regimes in Georgia. Her expertise extends to assisting clients in banking related cases for both personal and business purposes, offering insightful consultation on business registration in Georgia, and providing support in residency and visa cases, as well as consular legalization ensuring that documents meet the necessary legal standards for cross-border use. In her role, she ensures clients receive comprehensive legal guidance and solutions tailored to their unique needs, contributing to the success of PB Services.

    Languages:

    • English
    • Russian
    • Georgian

    Specialties:

    • Banking services;
    • Registration, maintenance, liquidation, and restoration of companies;
    • Regular, special, and exceptional taxation regimes and statuses;
    • Visa, residence permit, tax residency;
    • Legalization of the document for cross-border use.
  • Omar Ali

    Omar Ali

    Senior Client Manager

    Education: Sadat Academy for Management Sciences (Bachelor’s), Cairo University (Master’s).

    Professional specialization: Tax and Business Consultation, Data Mining, Data Analysis, Client management, Web Administrator, Business articles Translation, Case Study and Planning, Business Negotiation, Crisis management.

    Professional Skills: Preparation of Registration Documents, Online Business Marketing, conducting feasibility study, WordPress Editing, Designing Business presentations, After Service and online Support, Client follow up, Social Media editing and inquiries, WordPress Content Translation, improvising alternative plans to finish the deal.

    Languages: English, Arabic, French and Georgian.

    Cases:

    • Running tax Consultation;
    • Preparation of Company registration Documents (charter and founding agreement);
    • Throwing online meetings for Business services Consulting;
    • Replying Social Media Business Inquiries;
    • Supervising Arabic company website;
    • Adding Articles and creating content using WordPress;
    • Business Advisor for Free Zone Companies;
    • Sending Follow-Up Emails to Previous and current Client;
    • Providing consultation for special permits and licenses such as Forex Company and Financial Services Company;
    • Participating in summer camp workshop and team building with colleagues;
    • Setting up a presentation about the connection between marketing and Consultancy during Team Building Camp;
    • Running real time visits to Revenue Service and House of Justice;
    • Help obtaining Residence Permits in Georgia;
    • Offering new services to current clients;
    • Find Best Business plan for the client and offer case study;
    • Provide Basic accounting consultation for Individual Entrepreneurs;
    • Discussing the terms of a business and finishing the deal;
    • Running Online and offline Notary requests;
    • Opening Business bank accounts for LLC and Individual Entrepreneurs in person and remotely;
    • Sending marketing proposals for current clients about Real estate Services;
    • Assisting clients to file a case with the help of our lawyers to claim clients’ rights in real Estate purchase;
    • Giving Visa recommendations for foreign clients;
    • Offering Current Clients with better bargain to help win the deal.
  • Rati Abashmadze - CEO

    Rati (Iese) Abashmadze

    Managing partner

    Consultant with 10+ years of experience in Foreign Direct Investment attraction in Georgia. Expertise: Tax planning and optimisation for individuals and for companies.

FAQ

Frequently asked questions

Get in touch
Ready for your next journey in Georgia?
Local & remote support
Free first consultation
We answer within one hour