Striving to succeed on its path of Euro-Atlantic integration, Georgia is positioning itself as a hub for doing business in the region and is developing an advanced international business environment and relations.
Located at the crossroads of Europe and Asia, and being the shortest transportation route between the two regions, Georgia is uniquely positioned to capitalize on increasing trade flows between Europe, the Caspian region, Central Asia and East Asia. It has one of the lowest and most manageable tax regimes in the world, an improving and more stable political and business climate, relatively low operating costs and an increasingly supportive government. These factors have made Georgia an attractive investment destination.
One of the most important milestones in the latest history was the signing the deep and comprehensive free trade agreement with the EU (enacted on September 1, 2014) as well as signature of Association Agreement (AA) with the EU in 2014, which further ensures stability of political and investment climate of the country.
In 2017, Government of Georgia implemented new tax policy and according to the new model of taxation system, companies pay the Profit Tax only on distributed earnings and reinvested profit is exempt from the Corporate Profit Tax.
ECONOMY OF GEORGIA
For centuries, Georgia’s location along the Silk Road, and other heavily traveled trading routes between Europe and Asia, has provided an undeniable economic advantage. Today, this strategic location continues to provide opportunity, giving Georgia ready access to foreign markets and a large number of international trading partners.
Construction of the new Baku-Tbilisi-Kars railway line is in the final stages and will further advance trading in the whole region. The government is investing heavily in the development of road infrastructure, mainly highways. The new port will bring Georgia’s logistical capabilities to a new level.
Georgian Railway provides vital freight and passenger transportation services across Georgia and connections with bordering countries, making it the most effective connection between Europe and Asia.
Georgia provides significant investment opportunities in the manufacturing sector. There are significant business opportunities in processing primary agricultural goods into higher value-added product and supplying equipment and services (greenhouses, storage, deep-freeze facilities, packaging, etc.). Georgian agriculture offers foreign businesses the opportunity to invest in areas with unmet market demand, significant cost efficiencies and strong profit potential.
Tourism is another field that has witnessed significant growth in recent years and is considered to be an important driver of economic development and job creation, as well as a revenue generator. The industry offers wide diversification in terms of its sub-industries: summer sea resorts, year-round mountain resorts (including skiing), spa-wellness, gaming and more. In fact, from 2003 to 2018, the number of international visitors to Georgia has increased significantly from 300,000 to 8.7 million.
According to a hotel market report prepared by Colliers International, the highest average occupancy rates in Tbilisi are in international midrange brand hotels (75%) and in international upscale brand hotels (74%). In addition, the ADR (average daily rate) for international upscale hotels is 203 USD.
The full article is available at www.tradewithgeorgia.com