Georgia is a country that is placed at the intersection of Asia and Europe, allowing it to be one of the most widely chosen places for investments. A former Soviet republic, the country is based on an open market economy where foreigners are always welcomed with open arms. The World Bank’s Doing Business Survey, out of 190 other countries, has rated Georgia to be the 6th most business-friendly of the lot, as on 2019 (Source: Doing Business Website). If you choose the correct sector for investments in Georgia, it is sure to bring you highly profitable returns.
Advantages for investments in Georgia
As a member of the World Trade Organization (WTO) since the year 2000, Georgia provides two special economic zones (namely, free and virtual zones), especially for businesses. This brings an edge to the country over others in Europe. Both these zones render multiple additional tax advantages, apart from the ones that are already in force. To add to that, there are some other perks you get from investments in Georgia. Such as:
- Liberal Tax Regimes: The country presents the lowest tax rates in the world, along with export and import tax, custom duties, and VAT exemptions for the special zones.
- Economy: The diversified GDP structure of the country is well-positioned, and that enables sustainable growth for all companies set up on the land. Price stability is one of the vital factors that make investments in Georgia profitable.
The 32 country Bilateral Investment Treaties (BITs) of the country and 322.6 million Foreign Direct Investments by 2018 also attributes to it being called “home” to the top Fortune 500 companies (Source: Agenda.ge.)
- Robust Infrastructure: You name it,and Georgia already has it. The country provides state-of-the-art technology and infrastructure that can be advantageous for companies across sectors.
- Skilled labour: Accredited to be a significant reason for profitable business enterprises, Georgia has a vast reservoir of easily accessible skilled workers. To add to that, the capitalist economy authorizes a no minimum wage limit for the workforce.
Companies that can be the perfect source of Investments in Georgia
The rich-land of Georgia, teamed up with its benefits, makes the country a regional trade hub across sectors. Some of them best suited for investments in Georgia are:
- Energy: As the base of all activities, the consumption of energy is always on the rise. Power distributing stations and plants are on high demand in Georgia and its neighbouring areas, making energy one of the most lucrative areas for investments in Georgia.
- Tourism: The country is expecting a rise in the international tourist count by almost 10% in the upcoming 5 years (Source: Hospitality and Real Estate Sector Research 2015, Colliers International) making the visitor count exceed the population of Georgia. This demands brand-new developments in hospitality and real estate.
- Agriculture: Georgia is home to 22 microclimates that offer a long harvesting season and since there is no scarcity of cultivable lands in the country, what can be better than investing in one? You can, alternatively, also invest in cold chains and storage for agriculture produce as well.
Conclusion: The several rules and laws passed by consecutive Governments have made investments in Georgia a very bankable opportunity. In case you are an investor who wants more information on the same, you can get in touch with Kaukapital, a premier consultancy.