Successfully investing in Georgia

PrintMailRate-it

last updated on 16 June 2023 | reading time approx. 2 minutes

 

 

 

How do you assess the current economic situation in Georgia?

Since 2021, the Georgian economy has been growing continuously every year. In 2022, growth of 9 percent was even achieved. For 2023, growth of 5 per cent is expected. The economic growth is mainly due to the removal of the coronavirus protective measures and the revival of the tourist industry. Other factors are the migrants from Russia, who are stimulating the service sector, and the transport corridor for goods from China, which are trans­ported through Georgia, the Caspian Sea and the Black Sea. 

Exports are also developing very positively. This is mainly due to high demand for Georgian raw materials. High growth in foreign investment is also expected until 2027.

 

How would you describe the investment climate in Georgia? Which sectors offer the largest potential?

Georgia is a very attractive country for foreign investors. The country offers less bureaucracy and extremely ad­van­tageous tax exemptions. Among the most important are:

VIRTUAL ZONE TAX EXEMPTIONS
Georgia offers profit tax exemptions for IT companies if their target market is outside the country. The country is becoming a popular place for IT companies to do business because of the skilled local IT staff.

FREE INDUSTRIAL ZONES IN GEORGIA
The Free Industrial Zones (FIZ) were established with the aim of attracting foreign investment capital and in­ves­tors to Georgia. The FIZ offer extended tax benefits as well as ease of operation to companies located in the zone.

The following sectors also offer the greatest potential for foreign investors:
  • construction
  • agriculture
  • renewable energy
  • tourism
  • general services
  • export of foodstuffs


What challenges do German companies face during their business ventures into Georgia?

Georgia is considered a country where corruption has been successfully fought in the past. By creating a very good investment climate, bureaucracy has also been reduced in recent years. Overall, it can be said that inves­tors face relatively few challenges. Learning the local language is usually the biggest challenge for foreign in­ves­tors. However, this is often unnecessary because most of the population in the cities is very well educated and often speaks at least English.


What are Georgia's current economic relations with Germany?

Georgia is considered a country where corruption has been successfully fought in the past. By creating a very good investment climate, bureaucracy has also been reduced in recent years. Overall, it can be said that inves­tors face relatively few challenges. Learning the local language is usually the biggest challenge for foreign in­ves­tors. However, this is often unnecessary because most of the population in the cities is very well educated and often speaks at least English.


In your opinion, how will Georgia develop?

Georgia is striving to become part of the European and Euro-Atlantic structures in order to consolidate its de­mo­cra­cy and strengthen its national security. In our opinion, the country is showing positive signs in this re­gard. Georgia will become a European-style country.

 

In March 2023, Georgia applied for EU membership in response to the war in Ukraine. However, it is still too early to talk about Georgia's membership in the EU. Economically, Georgia will develop rapidly and experience further economic growth in the coming years.

Contact

Contact Person Picture

Klaus Kessler

Partner

+49 89 9287 80 710

Send inquiry

How we can help

Skip Ribbon Commands
Skip to main content
Deutschland Weltweit Search Menu