Investment in Georgia

In recent years, investment in Georgia has become a hot topic for people looking for foreign investment and also get residence in Georgia. This article examines the history, economic growth, investment opportunities, economic statistics, Georgia’s international standing, and the benefits of investing in Georgia.

We hope you enjoy reading this article and remember that our experts are by your side by providing free advice on investing in Georgia, from the stage of company registration to the implementation and start-up of a business.

About investment in Georgia

Investment in Georgia provides an exciting and appealing market for global investors. The country’s strategic geographical location and fair and progressive policies have made it a popular choice among investors. Georgia’s business and property rights reforms have established a modern and favorable investment environment. Over the past 10 years, the country has undergone significant transformations, propelling Georgia into becoming an emerging economic powerhouse in Asia and Europe. The absence of corruption and rent-seeking in the political and financial systems makes it a secure investment destination. Ranked as the seventh freest economy by the World Bank, Georgia has the potential to become a global investment hub.

Investing in Georgia and Obtaining Residency

One of the most common pathways to obtain residence in Georgia is through investment. According to the country’s immigration law, foreign nationals who invest a minimum of $300,000 in Georgia can acquire permanent residency. Initially, you will be granted a five-year residency, and if the value of your investment remains at least $300,000 after five years, you can secure permanent residency. Holders of investment residency can also apply for residency for their spouse and children. It is important to note that acquiring Georgian citizenship through investment is not possible.

Advantages of investing in Georgia

Geographical location of Georgia

With its strategic geographical location between Eastern Europe and Central Asia, as well as access to global open waters, Georgia is considered a strategic area for transportation. This country borders the Black Sea, Armenia, Azerbaijan, Turkey and Russia. It should also be noted that Georgia is on the route of the ancient Silk Road, which has increased the value of investing in Georgia.

Absence of corruption in the administrative system of Georgia

Global statistics show that Georgia’s administrative system is corruption-free and the healthiest administrative system among Eastern European and Central Asian countries. This provides security for investors and increases new investment opportunities in this country.

Low tax rates in Georgia

Simple rules about tax in Georgia have made this country known as one of the attractive destinations for foreign investors. The import tax rate of goods in customs in this country is between 0 and 12 percent, the profit tax rate of companies and natural persons is 20% and the value added tax rate is 18%.

Georgia has taken the 9th place in the world in the ease of receiving taxes, which has attracted foreign investors and created new investment opportunities in Georgia. In a way, it can be said that Georgia is a paradise for those looking to pay low taxes.

Cheap labor in Georgia

One of the unique features of Georgia is the skilled and capable labor force with appropriate salaries and wages. This country has talented young people, most of whom are able to speak 3 languages: Georgian, Russian and English. Another advantage of investing in Georgia is the average salary is less than a fifth of European countries and many other countries in the world, while the quality of work and the ability of the workforce of this country is very high.

Low cost of energy in Georgia

Georgia is among the countries that are attractive to foreign investors due to easy access and low cost of energy. The country has rich water and electricity resources and also has easy access to gas. In addition, the cost of energy in Georgia is on average less than one fifth of European countries and other large countries of the world. This issue increases the profitability of industries and is considered a bonus for investing in Georgia.

Consultation on Investment in Georgia

When it comes to investing abroad, it’s important to approach it with caution due to the inherent risks and challenges involved. To navigate this path successfully, it’s crucial to seek guidance from knowledgeable and experienced professionals in this field and conduct thorough research. If you’re considering investing in Georgia, it’s essential to thoroughly study the country, its various industries, and its economic landscape to gather comprehensive information. One way to explore the potential for secure foreign investment is by seeking consultation from reputable and well-established companies specializing in investments in Georgia.

Types of Investment Opportunities in Georgia

When considering investment options in Georgia, there are various methods beyond property purchase that investors can explore. The choice of investment sector depends on individual goals, initial capital, and expertise. Here are some thriving industries in Georgia suitable for investment:

1. Construction: With urban growth and infrastructure development on the rise in Georgia, the construction industry has become a vital sector in the country’s economy. Both local and international construction companies have been actively engaged in projects, offering investment opportunities in residential, commercial, and administrative complexes, as well as recreational facilities.
2. Tourism: Georgia has gained recognition as one of the most appealing travel destinations, with National Geographic listing it in 2024. Its breathtaking natural landscapes, pleasant climate, hospitable Georgian people, affordable travel costs, rich culture, and strong social security have attracted a significant number of tourists from around the world each year. Investing in the tourism industry through luxury hotels, restaurants, tour packages, and related opportunities can yield substantial profitability.
3. Agriculture and Livestock: Thanks to its pristine nature, fertile soil, abundant water resources, and favorable climate, Georgia is considered one of the best locations in the world for agriculture and livestock farming. This sector presents attractive investment prospects and serves as a reliable income-generating solution.

Investment in Georgia through Property Purchase

Buying property in Georgia is an attractive investment method aimed at preserving capital value and ensuring profitability. The straightforward property buying and selling laws in Georgia have made it a sought-after destination for investors. On one hand, the affordable real estate prices in the country coupled with its high growth potential offer a golden opportunity to increase your capital and generate income. Cities like Tbilisi, Batumi, and Kutaisi are prime locations for real estate investments in Georgia. However, Tbilisi, being the capital and the main economic hub, provides higher rental returns and more substantial profits in the real estate sector.

History of investment in Georgia

After the separation of Georgia from the Soviet Union in April 1991, this country did not benefit from acceptable economic conditions due to many political problems and lack of adequate social security.

But after the 2003 revolution, Georgia gradually started to establish the infrastructure for economic growth so that it achieved a good growth in the years 2006 to 2008. The figure of foreign investment in Georgia during this period reached an annual average of $1.5 billion.

Unfortunately, with the occurrence of the global economic crisis in 2008, as well as Georgia’s war with Russia in the same year, Georgia’s economy weakened again and the amount of investment decreased to $600 million in 2009. However, due to the efforts of this country to attract foreign investment and economic development, this statistic started to grow again.

This upward trend has become more intense since 2012 and this path continues. In 2019, Georgia was able to attract about $330 million of foreign investment in various fields.

With the emergence of the coronavirus, this number decreased sharply, but since the beginning of 2022, Georgia has been able to attract more than $500 million for investment in the first 3 months of the year, which shows a growth of about 50% compared to before the coronavirus.

Which countries are the biggest foreign investors in Georgia?

It is very important to know the top investor countries in Georgia. With the behavioral science of nations, the best understanding of the country’s political and international relations and positions can be obtained. Currently, Spain, England, Turkey, China, the Netherlands and the United States are respectively the 6 countries that invest the most in Georgia. It has been announced that the total foreign investment in Georgia was more than $500 million in the first 3 months of 2022 alone, which is more than 4 times the amount of 2019.

Best Investment in Georgia

One of the important factors helping to attract investment in Georgia are the businesses established by foreign investors. By receiving information and statistics from different sectors, it is easy to identify popular and virgin sectors and check the possibility of expanding them. In the first 3 months of 2022, the most investments in Georgia have been made in the fields of finance, energy, construction, production, communication, tourism industry (including hotels and restaurants), transportation and mining.

Georgia’s economic position based on the statistics published by international organizations

– The Fraser Institute’s 2022 World Economic Freedom Report has placed Georgia among 15 countries with a free economy.

– According to the results of the survey conducted by the International Budget Partnership (IBP) in 2021, Georgia ranks first among 120 countries in the global ranking of government budget transparency.

– According to the Regulatory Restrictiveness Index (FDI), Georgia ranks 8th among more than 80 countries in attracting investment in the world’s most open economies.

– In the ranking of economic freedom of the Heritage Foundation in 2022, Georgia is ranked 18th in Europe, which is well ahead of many EU member states. Also, in the world ranking, Georgia ranks 26th among 177 countries.

– Ranked 15^th out of 142 countries in terms of safety index in 2022.

– Ranked 7^th out of 162 countries in terms of global economic freedom by the Fraser Institute in 2018.

– Ranked 41^st out of 180 economies and 1^st among 19 Eastern European and Central Asian countries (EECA) in terms of transparency by Transparency International.

– Ranked 66^th out of 140 countries in terms of global competitiveness by the World Economic Forum in 2018.

– Ranked 16^th out of 46 countries in the list of best European countries for trade by the European Chamber in 2019.

– Ranked among the top 190 countries in the World Bank’s ranking.

– Georgia’s economy grew by 7.3% in June 2023, according to the World Bank report.

– Total FDI (Foreign Direct Investment) inflows exceeded $1 billion in the first 6 months of 2023.

– 0% inflation in January 2024