Investment in Georgia

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Investment in Georgia has made 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. During the past 10 years, Georgia has undergone massive transformation, and the fact that corruption is absent, has made investing in Georgia a safe choice for international investors. According to the World Bank, Georgia is ranked 7th for the freest economy, which makes a great opportunity for investments in Georgia.

How to get Georgian residency by investment? One of the main questions of investors when looking to start their business in Georgia, Investment is one of the most popular methods of obtaining residence in Georgia. Foreign nationals who invest a minimum of $300,000 in Georgia are eligible for permanent residency, as per the country’s immigration law. For a Georgian investment visa, initially, you will be granted a five-year residency. Provided that the value of your investment remains at least $300,000 after five years, you will be able to secure permanent residency. Additionally, individuals who possess investment residency may submit residency applications for their spouse and children. It is crucial to acknowledge that it is impossible to obtain Georgian citizenship by investment due to Georgia’s strict citizenship laws. However, it is important to note that people with permanent residency have the same rights as a citizen with the exception of voting.

During the past few years the fast development of Georgia has made it to be under the spotlight for many investors and businessmen. The combination of cheap labor and low tax rates in this country as well as non-existence corruption makes investments in Georgia very safe.

Georgia is recognized as a strategic transportation hub due to its strategic geographical location between Central Asia and Eastern Europe, as well as its access to global open waters. This country shares borders with Russia, Turkey, Azerbaijan, Armenia, and the Black Sea. Additionally, it is important to mention that Georgia is situated on the ancient Silk Road, which has elevated the value of investing in the country.

According to data from across the world, Georgia’s administrative system is completely free of corruption and is the most robust administrative system among the nations of Eastern Europe and Central Asia. This not only boosts the number of fresh investment prospects in this nation but also offers investors a sense of security.

Simple rules about tax in Georgia have made this country known as one of the attractive destinations for foreign investors. The profit tax rate for corporations and natural persons is 20%, while the value-added tax rate is 18%. The import tax rate for products in customs in this country ranges from 0 to 12 percent. Georgia has achieved the ninth position in the world for the convenience of tax receipts, which has fostered new investment opportunities and attracted foreign investors. In a sense, Georgia can be considered a paradise for individuals who are interested in paying low taxes.

The competent and capable labor force in Georgia, which is compensated at a reasonable rate, is one of its most distinctive characteristics. The majority of the young people in this country are capable of speaking three languages: English, Russian, and Georgian. Another benefit of investing in Georgia is that the average salary is less than one-fifth of that of European countries and many other countries worldwide. Additionally, the quality of work and the capabilities of the workforce in this country are exceptional.

A low cost of energy and simple access are among the factors that make Georgia an attractive destination for foreign investors. Rich water and electricity resources, as well as convenient access to gas, are available in the country. Furthermore, the average cost of energy in Georgia is less than one-fifth that of European countries and other significant countries worldwide. This issue is regarded as a benefit for investing in Georgia and increases the profitability of industries.

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.

Investors in Georgia might examine a variety of investment opportunities other than property purchase. Individual goals, beginning resources, and skills all influence the investing industry chosen. Here are some booming businesses in Georgia ideal 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. Local and international construction businesses have been actively involved in projects, giving investment possibilities in residential, commercial, and administrative buildings, as well as tourist attractions.
2. Tourism: Georgia has emerged as one of the most appealing vacation destinations, with National Geographic naming it for 2024. Every year, a large number of visitors from all over the globe visit Georgia due to its stunning natural landscapes, pleasant temperature, low travel expenses, rich culture, and solid social security system. Investing in the tourist business, including luxury hotels, restaurants, tour packages, and other options, may result in significant profits.
3. Agriculture and livestock: Georgia is regarded as one of the top agricultural and animal production areas in the world due to its pristine natural environment, rich soil, many water supplies, and pleasant climate. This industry offers appealing investment opportunities as well as a consistent source of income.

Buying property in Georgia is an appealing investment strategy aimed at maintaining capital value and assuring profitability. Georgia’s uncomplicated property-buying and selling regulations have made it a popular investment destination. On the one hand, the country’s low real estate prices, along with its strong development potential, provide a great opportunity to raise capital and produce income. Cities such as Tbilisi, Batumi, and Kutaisi are ideal sites for real estate investment in Georgia. However, Tbilisi, being the capital and key commercial center, offers better rental yields and larger profits in the real estate industry, which makes investments in Tbilisi a safe approach when it comes to property investing.

Georgia’s liberation from the Soviet Union in April 1991 did not result in acceptable economic circumstances due to several political issues and a lack of proper social security. However, after the 2003 revolution, Georgia gradually began to develop the infrastructure for economic growth, resulting in significant growth from 2006 to 2008. During this time, foreign investment in Georgia averaged $1.5 billion per year. Unfortunately, the worldwide economic crisis in 2008, along with Georgia’s conflict with Russia the same year, devastated Georgia’s economy once more, and investment fell to $600 million in 2009. However, because of the country’s attempts to attract international investment and economic growth, this number began to rise again.

This rising tendency has accelerated since 2012, and it continues. In 2019, Georgia attracted around $330 million in foreign investment across a variety of areas. This amount fell dramatically once the coronavirus emerged, but Georgia has been able to attract more than $500 million in investment in the first three months of 2022, representing a 50% increase over the previous year.

It is critical to know the top investor countries in Georgia. The behavioral science of nations provides the most in-depth knowledge of a country’s political and international relations and positions. Currently, the six countries with the most investment in Georgia are Spain, England, Turkey, China, the Netherlands, and the United States. It has been announced that total foreign investment in Georgia exceeded $500 million in the first three months of 2022 alone, more than four times the amount in 2019.

One of the important factors that helps 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 sectors and check the possibility of expanding them. In the first 3 months of 2022, the most investments in Georgia made were in the fields of finance, energy, construction, production, communication, the tourism industry (including hotels and restaurants), transportation and mining.

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 15th out of 142 countries in terms of safety index in 2022. Ranked 7th out of 162 countries in terms of global economic freedom by the Fraser Institute in 2018. Ranked 41st out of 180 economies and 1st among 19 Eastern European and Central Asian countries (EECA) in terms of transparency by Transparency International. Ranked 66th out of 140 countries in terms of global competitiveness by the World Economic Forum in 2018. Ranked 16th 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