Free Industrial Zones (FIZ): Tax Exemptions for Producers in Georgia
Georgia's Free Industrial Zones offer a favourable tax regime designed to attract international production and logistics.
Free Industrial Zones (FIZ) are designated geographic areas in Georgia where registered companies benefit from a substantially lighter tax regime than the rest of the country — designed to attract international production, logistics and trade.
They're worth considering alongside standard Company Registration, especially for manufacturing or trading activities with significant volumes.
The Free Zones in Georgia
Tax Comparison: Mainland vs Free Zone
| Tax | Standard Company | Free Zone Company |
|---|---|---|
| VAT | 18% | 0% |
| Corporate Profit Tax | 15% | 0% |
| Dividend Distribution Tax | 5% | 0% |
| Property Tax | Up to 1% | 0% |
| Import Duties | 12% / 5% / 0% | 0% |
| Export Duties | 0% | 0% |
| Personal Income Tax | 20% | 20% (unchanged) |
Benefits Common to All 4 Zones
- No minimum capital or initial investment requirement
- 100% foreign ownership allowed
- 100% profit repatriation
- Remote registration via power of attorney
- Reduced energy costs
How to Access
-
Registration Time2 business days
-
Licence RenewalMandatory every year
-
Most Common Company TypeLLC
Frequently Asked Questions About Free Industrial Zones in Georgia
Which activities are prohibited in the free zones?
By law, the following are prohibited: production and trade of weapons and ammunition, nuclear and radioactive substances, narcotic and psychotropic substances, tobacco products and tobacco raw materials.
Do all activities really get a 0% tax rate?
No: the exemptions don't apply to some categories, mainly businesses selling services rather than physical goods. Which licence to apply for should be checked case by case before starting, to avoid penalties.
Is it true that it's difficult to open a bank account for a free zone company?
Yes, this is a point to consider seriously: for over a year, Georgian banks have not reliably worked with companies registered in a free zone. You should plan for a banking solution in another jurisdiction in advance.
Does the free zone licence need to be renewed?
Yes, renewal is required every year.
Can I register the company in a free zone remotely?
Yes, via power of attorney: you don't need to be physically in Georgia to complete registration.
Considering a free zone for your business?
Tell us about your project: we'll work out together whether a FIZ is the right fit.
Talk to Our Team