Page 24 - FDI Alliance International Magazine. Spring 2021 Digital Interactive Issue

GEORGIA – A PLACE YOU WILL CALL HOME

The country of Georgia is a natural gateway to was developed in partnership with Technical FTAs with CIS countries that include Armenia,
the region, with its strategic position between University of Munich and will offer vocational, Belarus, Moldova, Kazakhstan, Kyrgyzstan, Russia,
Europe and Asia. Over the last decades, Georgia undergraduate, graduate, and post-graduate Tajikistan, Uzbekistan and Turkmenistan, as well
has become synonymous with successful reforms degree programs as well as research possibilities as all its neighbors and strategic partners, Turkey,
and rapid development and now, it is on track for in science and technology. KIU will join other high Azerbaijan and Ukraine. As a result, Georgia
even bigger things in the future, such as becoming profile universities such as Tbilisi state University, provides customs duty-free access to markets with
a full-fledged EU member state. Tbilisi Technical University and Ilia University, 2.3 billion population.
which in collaboration with San Diego State
Making Georgia the best place to do business University offer ABET, ASC, WASC accredited General Schemes of Preference for Georgia with the
is a strong commitment of the country and the courses in STEM fields. Coupled with multi US, Canada, and Japan have also been applied for,
government. This fact is backed up by various lingual capabilities, well reflected in booming as a result 3,400 goods are exported from Georgia
international rankings and ratings, such as Georgia international business services sector, Georgia is with lower tariffs.
being on the 7th position in the Ease of Doing ready to offer companies combination of skilled
Business index by World Bank, 12th in the Index and highly motivated workforce Furthermore, a proposed series of FTAs, including
of Economic Freedom by Heritage Foundation, Georgia-Israel, Georgia-India and Georgia-U.S.,
3rd Least Tax Burdened Country - World Bank CONNECTIVITY TO MAJOR MARKETS are also in the works.
and 8th in Lest Restrictive Investment Destination
– OECD. With its strategic location and well developed
infrastructure, 4 sea ports, 3 international airports, COST COMPETITIVENESS
There are many reasons why investors would internationally connected railway (connecting China
benefit from doing business in Georgia, but just and Turkey), highway from border to border, One of the lowest utility costs in the Europe,
to highlight, here are top five of our favourites: Georgia is well positioned to give investors all the very competitive salaries and one of the least
tools to capitalize on opportunities arising from burdened taxation system, make Georgia one
HOME TO SKILLED LABOUR POOL AND free trade agreement and trade flows passing of the most cost effective location in Europe and
TALENTED YOUNG INDIVIDUALS through the country. wider region. Over 75% of electricity is generated
from hydro and wind, making electricity not only
Although a small country, Georgia has a large The Association Agreement with EU was signed and cheap but also green. The country has four free
concentrations of universities, which means ratified in 2014, including Deep and Comprehensive trade zones, but the nominal land costs and
companies have easy access to the skilled talent Free Trade Agreement (“DCFTA”). In 2016, Georgia government support programs mean that the
they need. Over 60 Higher education and 65 signed free trade agreement with EFTA countries, country is almost one big free zone already.
Vocational education centers produce fresh giving Georgian products duty free access to
professionals, with over 150 thousand students markets of Iceland, Liechtenstein, Norway and Since 2017, corporate profit tax on retained or
graduating in the last 5 years. Georgia is about Switzerland. Since then, Georgia has concluded reinvested profit is 0%. Only taxes payed based on
to strengthen its position as an educational free trade agreements with the People’s Republic employees salary are personal income tax (20%)
center in the region with new Kutaisi International of China (including Hong Kong) and most and pension contribution (only 2%). Georgia’s
University, which, at full capacity will host 60 recently with UK, which come in force after stripped-down and streamlined tax scheme has
thousand students. KIU operational model the Berixit. Additionally, Georgia has signed produced the 3rd lowest overall tax rates in the

24. FDI ALLIANCE INTERNATIONAL