Benefits
Tax Benefits in Tbilisi Free Zone
Companies operating in the Tbilisi Free Zone (TFZ) enjoy significant tax savings and benefits. By establishing operations in the TFZ, businesses can take advantage of various tax exemptions and incentives.
Corporate Income Tax Savings
In the TFZ, companies are exempt from paying Corporate Income Tax, which is set at 15% in Georgia. 0% tax rate on corporate income results in substantial savings for businesses operating through the zone*.
Value Added Tax (VAT) Exemption
Companies in the TFZ are not required to pay Value Added Tax (VAT) on their inputs. In Georgia, the standard VAT rate is 18%. This tax exemption applies to inputs brought into the zone from abroad or from the mainland of Georgia.
The TFZ is particularly advantageous for businesses that engage in purchasing or importing raw materials or products from third countries and subsequently re-exporting or exporting them to other third countries. In such cases, there are no corporate tax implications for TFZ companies.
*This tax benefit only applies to manufacturing/processing & export or import/re-export operations through the Zone.
Dividend Withholding Tax Waiver
Dividends distributed by companies in the TFZ are not subject to the Dividend Withholding Tax, which is 5% in Georgia. This exemption allows businesses to maximize their profits and retain 100% of their earnings.
Customs Import Tax Relief in TFZ
Imported inputs brought into the TFZ are not subject to customs import tax, which can range from 5% to 18% in Georgia. This exemption enables businesses in the zone to save significantly on production costs compared to companies operating on the mainland.
Property Tax Exemption
Companies with plants and equipment in the TFZ benefit from a complete exemption from Property Tax. In contrast, property tax in Georgia is typically set at 1%.
Comparison: Free Zone vs. Mainland Georgian Company
TFZ offers significant tax advantages to compare with companies in the mainland of Georgia:
| Type of Tax | % | % |
|---|---|---|
|
Corporate Profit |
0% |
15% |
|
Dividend |
0% |
5% |
|
Import |
0% |
0%, 5%, 12% |
|
Property |
0% |
1% |
|
VAT |
0% |
18% |
|
Export |
0% |
0% |
|
Sales to Georgia |
4% |
0% |
|
Corporate Profit (service companies) |
15% |
15% |
|
Personal Income |
20% (Can be paid by employees) |
20% To be paid by company |
| Type of Tax | TFZ | GEO |
|---|---|---|
|
Corporate Profit |
0% |
15% |
|
Dividend |
0% |
5% |
|
Import |
0% |
0%, 5%, 12% |
|
Property |
0% |
1% |
|
VAT |
0% |
18% |
|
Export |
0% |
0% |
|
Sales to Georgia |
4% |
0% |
|
Corporate Profit (service companies) |
15% |
15% |
|
Personal Income |
20% (Can be paid by employees) |
20% To be paid by company |
Operational Benefits in Tbilisi Free Zone
Comfortable Location
Situated adjacent to Tbilisi main cargo transit road
- 20 minutes to Tbilisi Airport
- 25 minutes to Tbilisi Downtown
- 1 hour drive to Azerbaijan and Armenian Borders
- 4-hour drive to Black Sea Ports of Georgia and Turkey
Excellent logistical hub for expansion to broader EU and Central Asian markets.
Easy & Cost-Effective Operations
- Simplified accounting, customs & construction regulatory procedures
- No limitations on price mark-up / profit margins
- International Trading permitted
- No limitations or quotas on import/export
- Tbilisi - the only Labor pool of the country - Direct access to 80% of labor of Georgia
- Competitive wages – no minimum wage regulations
- The lowest tariffs on electricity consumption - no VAT on utilities and communications
Upscale Infrastructure
- Turn-key industrial & warehousing solutions
- Facilities fully customized to tenants’ needs
- Land Plots from 500 m2 - ready for development
- Asphalted access roads to facilities
- Electricity, Water, Sewage, Gas – connections at one-stop
- Up to 25 mw electricity connections
- Fenced Area and Video Monitoring
Smooth Business Start-up
- Simple & Fast - Company Registration in Georgia in 1 day, including remote registration
- Obtaining TFZ License in 1 day
- 100% foreign ownership allowed
- No initial capital or minimum investment required
- Bank account opening in 1 day
- Plug-in & Play high-quality industrial & warehousing facilities from 50 m2