Georgia to Offer 10-Year Tax Breaks for Startups Creating High-Tech and Innovative Products

Georgian startups developing high-tech and innovative products will receive unprecedented tax relief for the next decade, Prime Minister Irakli Kobakhidze announced during a recent government session. The initiative is part of the administration’s broader vision to transform Georgia into a regional innovation hub and boost economic development through technology-driven entrepreneurship.

“Innovation is one of the key pillars of our economic agenda. To support its growth, Georgian startups working on high-tech and innovative solutions will be exempt from income tax for a period of 10 years,” said Prime Minister Kobakhidze.

According to the plan, startups will benefit from a zero percent income tax rate for the first three years, easing the financial burden during the crucial early stages of growth. This policy aims to stimulate the formation of new startups, attract foreign innovators to the country, and create a favorable climate for investment and job creation.

In addition to supporting early-stage companies, the initiative includes broader tax incentives for small and medium-sized enterprises (SMEs) engaged in developing innovative products or services.

“This reform is designed not only to encourage local entrepreneurship but also to attract international startups to Georgia. It’s a strategic move that supports our long-term objective of establishing Georgia as a center for innovation in the region,” Kobakhidze added.

The Georgian government views the innovation sector as a high-potential driver of economic diversification. Officials believe that by creating a competitive and supportive tax environment, the country can unlock new opportunities in digital technology, engineering, biotech, and other advanced industries.

The new tax framework is expected to take effect in the near future, with further details and implementation mechanisms to be announced by the Ministry of Finance and other relevant agencies.