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 Tax | 20% | 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.
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.
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.
Benefits
What Is Included In Free Zone Client Licenses?
International Trading
Industrial
Service
E-commerce
Consulting
Financial Services
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.
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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:
