Georgia is getting more and more investors from around the world, investors from Iran, Netherlands, Azerbaijan, China, India and other. Why to invest in Georgia? We have 10 reasons why you need to invest in Georgia.
1. Wide region market – According to investingeorgia , Georgia’s liberal trade regimes provide investors with a favorable opportunity to not only access the country’s 4.4m residents, but the wider region’s markets, as a direct result of the absence of customs and import tariffs. To date, Georgia has signed FTAs with CIS countries that include Ukraine, Belarus, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan, as well as its neighbors, Turkey, Azerbaijan and Armenia.
2. Free Trade agreement with EU – the Association Agreement (“AA”) with EU was signed and ratified in 2014, including Deep and Comprehensive Free Trade Agreement (“DCFTA”).
General Schemes of Preference for Georgia with the US, Norway, Switzerland, Canada, and Japan have also been applied for, with the result being lower tariffs on 3,400 goods exported from Georgia. In addition, Georgia is a member of the World Trade Organization (WTO) since 2000.
In terms of border control, all foreign travelers to Georgia enjoy highly accessible and service-oriented customs policies and administrative protocol. There is almost no custom duty, with 90 % of goods being exempt from import tariffs, with no quantitative restrictions. The average time for customs clearance is currently ~15 minutes – one of the fastest and most efficient in the CIS
3. Its easy – The official webpage , www.doingbusiness.org , presents the Ease of Doing Business rank (out of 189 economies) . the page ranked Georgia as 15th place which is quite higher than Lithuania , Bulgaria and turkey .
4. Potential staff – A young talented skilled students and young generation who r Multi language and who mostly have knowledge of not only Georgian and English but also Russian language . according to recent statics , Georgian young generation mostly prefer BUSINESS ADMINISTRATION .
5. Labour cost – Mentioned by INVEST INGEORGIA ,The average monthly salary in Georgia amounts to 490 USD, which includes blue and white collar workers, as well as C-suite employees. The country doesn’t have minimum wage regulations.
Unemployment rate is 14.6%. It is noteworthy, that Georgian labor market offers young workforce – 50% of the unemployed population is in the 20-34 age category. Additionally, no working visas or permits are required for citizens from around 100 countries during 90 days, which helps attracting professional employees from other countries in the wider region.
Georgia has quite flexible Labor Code. According to Heritage Foundation, Georgia has one of the most liberal labor environments not only in the region, but globally and Labor Freedom Index is 79.9 out of 100 score (24th globally).
The social tax is 0%.
6. Low tax – The 2005 tax code transformed the Georgian fiscal landscape. Only six taxes emerged from the legislative deluge (down from 21 in 2004)3, with rates so low that Georgia is now ranked 4th in the world in terms of how much it taxes its citizens. Following some amendments, the tax code now sets the following taxes and rates:
– Income tax – 20% (flat rate)
– Corporate tax – 15%
– VAT – 18%
– Excise tax – Varies
– Customs tax – 0%, 5% or 12%
– Property tax – 1% on the self-assessed value of property
7. Corruption free – From 2003 forward, the World Bank has recognized Georgia as one of the world’s fastest reforming economies and as a leader in fighting corruption. Georgia can offer a platform for trade and investment in the Caucasus and Central Asia and is ranked by the World Bank as 9th in the world (out of 185 countries surveyed) for ease of doing business in June 2012.
8. Geographical location – A country in the Caucasus region. Situated at the juncture of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the south y Turkey and Armenia, and to the east by Azerbaijan. Georgia covers an area of 69,875 square kilometres .
having acess to post soviot uninoun countries, meanwhile blacksea which let Georgia to be a connector between asia , middle east and europ makes Georgia a perfect trade center.
9. Free economy – According to http://www.heritage.org , Georgia’s economic freedom score is 73.0, making its economy the 22nd freest in the 2015 Index. Its overall score has increased by 0.4 point since last year, primarily reflecting improvements in freedom from corruption, monetary freedom, and the management of government spending that outweigh a notable decline in labor freedom. Georgia is ranked 11th out of 43 countries in the Europe region, and its score is well above the regional average.A decade of solid increases in economic freedom has contributed to the dynamic expansion of Georgia’s economy. Sound public finances and policies that support open markets have boosted prosperity and reinforced Georgia’s commitment to economic freedom. However, not all of the pillars of economic freedom are fully entrenched. Rule of law remains weak, and the perceived level of corruption, though improving, is higher than average for a European country.
10. Energy Costs – Georgia’s natural advantage as a gateway between Europe and Asia provides many benefits to investors in the manufacturing sector and other sectors which requires energy. In particular, Georgia offers not only competitive labor , low taxes, and a corruption-free environment for serving the region, as well as numerous energy costs preferential/free trade agreements which is result of low energy cost comparing to other neighbor countries and europ.