Over the past decade, Georgia has rapidly emerged as a preferred destination for foreign entrepreneurs looking to establish regional or global business operations. With its liberal economy, low tax environment, and strategic location bridging Europe and Asia, Georgia offers a compelling base for companies in technology, logistics, professional services, and more. This article explores the key reasons driving the growing trend of international entrepreneurs relocating or expanding their headquarters to Georgia.
Business-Friendly Environment
Georgia consistently ranks among the most business-friendly countries in the world. According to the World Bank’s latest rankings, Georgia placed 7th globally for ease of doing business, outperforming many EU countries in categories such as starting a business, dealing with construction permits, and registering property.
Establishing a company in Georgia is remarkably efficient. A limited liability company (LLC) can be registered in as little as 1 business day, either in person or remotely through a legal representative. There is no minimum capital requirement, and corporate setup costs are minimal. Additionally, the bureaucracy is streamlined, and most government services are digitized and accessible via the Public Service Hall or online portals.
Attractive Tax Regime
One of Georgia’s main draws is its low and simplified tax system. Key advantages include:
- No corporate income tax on retained and reinvested profits (Estonian model)
- 0% VAT and profit tax for registered IT companies serving clients abroad (Virtual Zone status)
- 1% turnover tax for Individual Entrepreneurs under the Small Business Status (up to 500,000 GEL in annual revenue)
- No capital gains tax on real estate held for over 2 years
- No wealth, inheritance, or gift tax
These policies have positioned Georgia as a regional hub for tech startups, service firms, and investment companies seeking legal tax optimization and cost efficiency.
Strategic Location and International Trade Access
Georgia’s geographic position provides easy access to both the European and Asian markets. It shares borders with Turkey, Armenia, Azerbaijan, and Russia, and has access to the Black Sea, making it a vital link in East-West logistics corridors.
Moreover, Georgia has signed free trade agreements with:
- The European Union (DCFTA)
- China
- Turkey
- EFTA countries (Switzerland, Norway, Iceland, Liechtenstein)
- Most of the CIS countries
These agreements provide Georgian-registered businesses with preferential access to a consumer base of over 2.3 billion people—an invaluable advantage for companies engaged in export, manufacturing, and distribution.
Cost Efficiency and Skilled Workforce
Compared to Western Europe or North America, Georgia offers a significantly lower cost of living and operation. Office rents, utility bills, labor costs, and professional services are highly affordable, while maintaining solid infrastructure and a growing ecosystem of international talent.
Tbilisi, the capital, hosts a young, educated, and multilingual workforce. Many professionals—particularly in IT, finance, and design—speak English, Russian, or both. The country also has a rising number of co-working spaces, accelerators, and incubators catering to remote workers and tech entrepreneurs.
Ease of Immigration and Remote Business Setup
Georgia offers several pathways for foreign nationals to reside and conduct business:
- Remotely registered companies: Foreigners can open a company without visiting the country by issuing a notarized power of attorney.
- Temporary residence permits: Can be obtained through property ownership or business activity.
- Digital nomad visa (Remotely from Georgia): Although initially launched during COVID, Georgia remains favorable to location-independent entrepreneurs.
Georgia’s legal system permits full foreign ownership of companies, and there are no restrictions on repatriation of capital or dividends.
Political Stability and Investment Guarantees
Georgia has implemented extensive reforms since the early 2000s to combat corruption, liberalize the economy, and enhance transparency. While political tensions occasionally surface—as in any developing democracy—Georgia remains a stable and investor-friendly destination by regional standards.
Furthermore, the government has introduced investment guarantee mechanisms, including access to international arbitration and protection under bilateral investment treaties with countries such as the United States, Germany, and the United Kingdom.
Emerging Startup Ecosystem
Georgia’s startup scene is gaining traction, supported by initiatives from GITA (Georgian Innovation and Technology Agency), EU and USAID funding, and local private investors. Sectors showing the most momentum include fintech, blockchain, SaaS, and logistics. Programs such as state grants, acceleration funding, and Virtual Zone benefits are designed to attract both local and foreign founders.
Tbilisi is increasingly recognized as a “hidden gem” for launching lean, scalable ventures.
Conclusion
For foreign entrepreneurs seeking a pro-business jurisdiction with low taxes, simple incorporation, strategic trade access, and minimal bureaucracy, Georgia stands out as one of the best options in the region. Its economic openness, digital infrastructure, and rising entrepreneurial ecosystem provide a fertile ground for startups, SMEs, and global companies alike.
As more founders and investors look for alternatives outside traditional high-cost hubs, Georgia is set to remain on the radar of the world’s forward-thinking entrepreneurs. Whether you are launching a tech company, managing international clients remotely, or relocating operations from abroad, Georgia offers both the infrastructure and the incentives to support your success.
