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Successfully investing in Georgia

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last updated on 19 May 2021 | reading time approx. 2 minutes

 

 

 

How do you assess the current economic situation in Georgia?

Georgia, like other countries around the world, was hit very hard by the corona pandemic. This is reflected in the current economic situation.

The Georgian government has taken steps to quickly overcome the corona pandemic. A vaccination program has been developed, which is intended to result in rapid immunisation of the population. Given the small population (4 million people), one is confident that the vaccination program will advance quickly.

The Georgian government wants to quickly accelerate economic growth in 2021. Economic stimulus packages have been drawn up to bring the economy back on the growth path. According to estimates, the Georgian economy is expected to grow again by around 4 per cent in 2021.

 

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

Notwithstanding the difficult situation, Georgia remains an attractive country for foreign investors. It offers less bureaucracy and extremely beneficial tax exemptions. The most popular tax beneficial statuses are:


Virtual Zone Entity

Georgia offers profit tax exemptions for IT companies if their target market is outside the country. The tax beneficial status of Virtual Zone Entity could be granted to IT companies.


Free Industrial Zones in Georgia

The “Free Industrial Zones” (FIZ) are created with the aim to attract foreign investment capital and investors to Georgia. FIZ offers extended tax benefits as well as operational simplicity to the companies based in the zone (FIZ Company).

 
The following sectors offer the greatest potential for foreign investors:

  • Construction;
  • Agriculture;
  • Renewable energy;
  • Tourism;
  • General Services;
  • Export of food.

    

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

Georgia is considered a country where corruption has been successfully combated 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 greatest challenge for foreign investors. But this is mostly unnecessary because the majority of the population in the cities is very well educated and mostly speaks at least English.

    

What are Georgia's current economic relations with Germany?

Georgia has very good economic and cultural relations with Germany and it is one of Georgia's largest trading partners. German companies are doing business very successfully in Georgia.

   

In your opinion, how will Georgia develop?

Georgia aspires to become part of European and Euro-Atlantic structures, which will enable it to consolidate its democracy and strengthen its national security. In our opinion, Georgia shows positive signs in this regard. Georgia will be an European style country.

Economically, Georgia will quickly overcome the crisis caused by the pandemic and record economic growth again.

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