Investment Environment

Large scaled market

As a transit country connecting Europe and Asia, Georgia continuously welcomes endless streams of merchants from all over the world. Georgia has very frequent business and trade activities with neighboring countries. As railway operation connects Georgia with Turkey and Azerbaijan, the strategic cooperation of China, Central Asia, Georgia and European countries will become more and more frequent.

Good quality and cheap Chinese products are popular not only in the Central Asian market, but also are highly welcomed in Georgia, middle East and Eastern Europe, including building materials, furniture to clothing and shoes, small appliances, daily necessities, high-tech products etc. This allows China to open up a trade route to Europe and eastern European region. Thus, width of the market scale and its good future prospects are absolutely predictable.

Encourage comprehensive free trade

Since coming into power, the new Georgian government has vigorously carried out economic reforms, including enforcing free trade. Efficient results have been obvious after several years of reforms; Georgia has now implemented the free trade regime. There are basically no restrictions on trade activity. All registered economic entities and even entrepreneur natural persons can engage in foreign trade activities.

Georgia is a member of WTO, moreover, goods produced in Georgia are exported to the developed countries such as Unites States, Canada, Swiss and Japan, enjoying preferential tariff; 7200 Georgian commodities enjoy zero tariff exporting to European Union and Turkey with no quota restriction.

Based on all of the above mentioned, Georgia encourages building Free Industrial Zones, Duty-free Industrial Zones and Industrial Parks. When a “Duty-free Industrial Zone” carries out economic activities, it is given exemption from customs duties, value-added tax, corporate income tax, property tax and other tax benefits. All the policies and measures indicate that Georgia hopes to build itself into an open and free international trade center.

Free transfer system of foreign exchange

In order to satisfy the requirements of business executives and investors coming from all over the world and provide better environment for business investment, Georgia is keeping whole world in the view, improving the foreign exchange transfer system, establishing more efficient and high speed foreign exchange mechanism, providing more preferential foreign exchange policy.

No declaration is needed for foreign currency to enter or exit Georgia, there are no restrictions either.

Foreign enterprises investing in Georgia can open foreign currency accounts in commercial banks of Georgia to handle the foreign currency-related procedures. When exporting foreign currency loan principal (according to relevant agreement) no tax is required to be paid. When transferring the foreign exchange loan interest, tax to be paid is 5% of amount of remittance. Remittance of profit must be carried out with evidence of payment of profit tax and other tax payment certificates of an enterprise; corporate profit tax rate is 15%.

Georgia and the Silk Road

The Great Silk road, that connected China with Mediterranean world, developed since 2nd century BC. Its main route went through Iran and Syria. At the same time there are assumptions arguing that several branches of this road crossed the territory of Georgia as well.

“Tbilisi Silk Road Forum” is an initiative launched in 2015 by the Previous Prime Minister of Georgia and organized by the Ministry of Economy and Sustainable Development of Georgia and the Ministry of Foreign Affairs of Georgia, supported by the Government of People’s Republic of China and the Asian Development Bank.

This event aims to establish a platform for annual high level meeting of all interested states and international organizations in order to explore opportunities, align visions and enhance partnership in four main areas of cooperation: transport, energy, trade and business-to-business contacts. The Forum will feature addresses by distinguished keynote speakers and will provide a platform for business executives and policymakers to share their views, experiences and expertise.

China and Georgia Officially Launch the Free Trade Agreement Negotiations (FTA)

On December 10, the MOFCOM International Trade Representative and Vice Minister Zhong Shan signed the Memorandum of Understanding Launching China-Georgia Free Trade Agreement Negotiations between the Ministry of Commerce of the People’s Republic of China and the Ministry of Economic Affairs and Sustainable Development of Georgia with the Minister of the Economic Affairs and Sustainable Development of Georgе Kumsishvili after the 7th meeting of the China-Georgia Intergovernmental Trade and Economic Cooperation Commission, officially launching the China-Georgia FTA negotiations.

China is the third largest trade partner and the second largest country of import origin of Georgia. In March 2015, China and Georgia announced to start the feasible research of the FTA negotiations. The research showed that the construction of the China-Georgia FTA is conducive to strengthening the bilateral relationship, deepening the trade and economic cooperation and promoting the economic development of the two countries.

One more important achievement is Georgia’s Membership of The Asian Infrastructure Investment Bank (AIIB)