Tbilisi profile and Top reasons to do business in Georgia

Tbilisi is the capital of Georgia and the key destination for tourists and business travelers. The city has monuments, castles, historical houses, churches, theatres, and authentic festivals. The number of multinational companies setting up South Caucasus and CIS headquarters in Tbilisi is increasing steadily, which ensures Tbilisi’s position as a regional business hub.

Tbilisi Profile

The city benefits from growing international, regional and local visitors. Over the last 5 years, annual hotel occupancy rates in Tbilisi have been above 70%. Tbilisi International Airport has around 120 flights per week through 16 different airlines, including Turkish Airlines, Georgian Airlines, Lufthansa, Qatar Airways, Air Baltic, etc. Tbilisi International Airport received the largest number of travelers compared to other Georgian Airports 1.5 mln in 2019. Additionally, in 2019, Ryanair, one of Europe’s low-cost and most popular airlines, also entered Georgia and launched flights from Tbilisi and Kutaisi airports.

Top reasons to do business in Georgia

Georgia is consistently ranked as a prominent performer by international institutions:

• Seventh by World Bank’s Ease of Doing Business (among 190 countries)
• Twelfth by Heritage Foundation’s Economic Freedom Index 2020 (among 180 countries)

Strategic geographic location: Located at the crossroads of Europe and Asia, Georgia is serving as a bridge and shortest route for transportation of goods.

Free Trade Agreements with 2-3 bln consumer market: Georgia has deep and comprehensive Free Trade Area (DCFTA) with EU, Free Trade Agreements (FTA) with Turkey, Ukraine, China (including Hong Kong), EFTA and CIS countries (including Russia, Kazakhstan, etc.). Additionally, Georgia is the beneficiary of GSP regime of the following countries. USA, Japan and Canada.

Fast growing economy: GDP of Georgia has permanently been increasing throughout last 4 years with around 4.4% average annual rate.

Corruption-free destination: According to the Transparency International’s Global Corruption Barometer, Georgia is perceived as a corruption-free destination.

Growth friendly tax policy: According to the 2018-2019 World Bank report, Georgia has one of the lowest taxes worldwide standing on the 3rd position with 9.9% total tax rate. In 2017, Government of Georgia implemented new tax policy. In new mode of taxation system, retained earnings are free of tax- meaning profit tax is deductible only in case of profit distribution.

Young, Skilled and competitively priced labor force: Georgia is inhabited by young, dynamic and relatively well-educated labor ready to take on new challenges.

To be able to read more about Georgia news or get more information about investing in Georgia please do not hesitate to contact our experienced consultant at Ava georgia.