Free Industrial Zones

Free industrial zones in Georgia: exemptions and how to set up

Four free industrial zones where permitted companies pay no profit tax, VAT, duties or property tax: how they work and who they suit.

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In short

Georgia has four active free industrial zones: Poti, Kutaisi, Hualing (Kutaisi) and Tbilisi. Companies registered there pay no profit tax, VAT, property tax or customs duties on permitted activities. Sales to customers in the rest of Georgia are taxed at 4%, and employees pay 20% income tax. They suit mainly companies that produce or process goods for export.

Free Industrial Zones (FIZ) are designated areas of Georgia where registered companies pay much less tax than in the rest of the country. They are designed to attract production, logistics and exports.

They’re worth comparing with standard company registration, especially if you produce or process goods for export.

What they are

Georgia’s four free zones

Poti

The largest (since 2008, over 300 hectares), on the Black Sea port with a rail station: textiles, pharma, electronics and logistics.

Hualing (Kutaisi)

Since 2012, 58 hectares, run by China’s Hualing group: wood, pharma, solar panels, textiles, furniture.

Kutaisi

Since 2009, 27 hectares, in the former car plant about 19 km from the airport: no sector limits.

Tbilisi

Since 2015, 17 hectares in Gldani: the smallest and closest to the capital, for production and warehousing.

Taxes compared: standard company and free zone

Tax	Standard company	Free zone company
VAT	18%	0%
Profit tax	15% on distributed profits	0% on permitted activities
Withholding on dividends to non-residents	5%	Check case by case
Property tax	Up to 1%	0%
Duties on foreign goods	0%, 5% or 12%	0%
Sales to customers in the rest of Georgia	Standard taxes	4% of the value
Employee income tax	20%	20% (unchanged)

Benefits common to all four zones

No minimum capital
100% foreign ownership allowed
100% profit repatriation
Remote registration with a power of attorney
No duties on foreign goods entering the zone

How to set up

Registration

In the zone, with status confirmed by the Revenue Service
Domestic sales

4% on the value of supplies to the rest of Georgia
Most common legal form

LLC

Note: some Georgian banks are cautious with free zone companies. Check your banking solution before registering.

What you still pay

4% of the value of supplies to Georgian-registered persons outside the zones.
20% personal income tax for employees, who self-report it.

To benefit, the company must be registered in the zone and have its status confirmed by the Revenue Service. IT service companies have their own regimes, such as international company status: see Taxes in Georgia.

Frequently asked questions about free industrial zones in Georgia

Which activities are banned in the free zones?

By law: weapons and ammunition, nuclear and radioactive substances, narcotics and psychotropics, tobacco and tobacco raw materials.

Does every activity pay 0% tax?

No. The exemptions apply to permitted activities, mainly production, processing and logistics. IT service companies have their own regimes, such as international company status.

Is it hard to open a bank account for a free zone company?

It can be: some Georgian banks are cautious with these companies. Check your banking solution before registering.

Can I sell in Georgia from a free zone?

Yes, but supplies to customers in the rest of Georgia are taxed at 4% of their value.

Can I register a free zone company remotely?

Yes, with a power of attorney: you don’t need to be in Georgia to register.

Sources

Note. This information is current as of October 2026 and may change. It is a general overview, not tax or legal advice for your case: check the rules in force with a professional before you decide, or contact the Chamber.

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