Benefits
Tax Benefits in Tbilisi Free Zone
Companies operating in the Tbilisi Free Zone (TFZ) enjoy significant advantages compared to other free economic zones in Georgia. By establishing operations in TFZ, businesses gain access to exceptional tax exemptions, flexible operations, and an investor-friendly environment.
Corporate Income Tax Savings
In the TFZ, companies are exempt from paying Corporate Income Tax, which is 15% in Georgia. The 0% corporate tax rate helps businesses operating in tax free zones in Georgia achieve substantial savings and improve profitability.
Value Added Tax (VAT) Exemption
Companies operating in tax free zones in Georgia, including TFZ, are not required to pay VAT (18% in Georgia). This tax exemption applies to inputs brought into the zone from abroad or from the mainland of Georgia. This benefit, on top of corporate profit tax exemption, makes TFZ ideal for companies importing raw materials/goods and re-exporting them internationally with or without value-addition.
*This tax benefit only applies to manufacturing/processing & export or import/re-export operations through the Zone.
Dividend Withholding Tax Waiver
Dividends distributed by companies in TFZ are not subject to the 5% Dividend Withholding Tax. This exemption allows investors to maximize profits and retain 100% of their earnings — one of the key advantages of Georgia’s free economic zones.
Customs Import Tax Relief in TFZ
Imported inputs brought into TFZ are not subject to customs import tax (compared to 5% to 12% tax on the mainland Georgia), helping reduce operational costs compared to businesses located outside free economic zones in Georgia.
Property Tax Exemption
Companies with plants and equipment in the TFZ benefit from a complete exemption from Property Tax. In contrast, property tax in Georgia is typically set at 1%.
Comparison: Free Zone vs. Mainland Georgian Company
TFZ offers significant tax advantages to compare with companies in the mainland of Georgia:
| Type of Tax | % | % |
|---|---|---|
|
Corporate Profit |
0% |
15% |
|
Dividend |
0% |
5% |
|
Import |
0% |
0%, 5%, 12% |
|
Property |
0% |
1% |
|
VAT |
0% |
18% |
|
Export |
0% |
0% |
|
Sales to Georgia |
4% |
0% |
|
Corporate Profit (service companies) |
15% |
15% |
|
Personal Income |
20% (Can be paid by employees) |
20% To be paid by company |
| Type of Tax | TFZ | GEO |
|---|---|---|
|
Corporate Profit |
0% |
15% |
|
Dividend |
0% |
5% |
|
Import |
0% |
0%, 5%, 12% |
|
Property |
0% |
1% |
|
VAT |
0% |
18% |
|
Export |
0% |
0% |
|
Sales to Georgia |
4% |
0% |
|
Corporate Profit (service companies) |
15% |
15% |
|
Personal Income |
20% (Can be paid by employees) |
20% To be paid by company |
Operational Benefits in Tbilisi Free Zone
Tbilisi Free Zone combines a package of locational, infrastructural, and operational effectiveness unmatched by other free zones in the region.
Comfortable Location
Situated adjacent to Tbilisi’s main cargo transit road
- 20 minutes to Tbilisi International Airport
- 25 minutes to Tbilisi Downtown
- 1 hour drive to Azerbaijan and Armenian Borders
- 4-hour drive to Black Sea Ports of Georgia and Turkey
Located in the capital, 290 km away from Poti Port on the West and 60 km away from Armenia/Azerbaijan to the South/East, TFZ is positioned as an ideal logistical hub for expansion into EU and Central Asian markets.
Easy & Cost-Effective Operations
- Simplified accounting, customs, and construction regulatory procedures
- No restrictions on price mark-up or profit margins
- International trading permitted
- No limitations or quotas on import/export
- Direct access to 80% of Georgia’s labor force residing in Tbilisi
- Competitive wages with no minimum salary regulations
- Lowest tariffs on electricity and utilities — no VAT applied
Upscale Infrastructure
- Turn-key industrial and warehousing facilities
Buildings fully customized to tenants’ needs - Land plots from 500 m² — ready for development
- Asphalted access roads to all buildings and land plots
- Electricity, water, sewage, and gas — one-stop connections
- Up to 25 MW electricity capacity
- Fenced area with full video monitoring
As one of the most advanced free economic zones in Georgia, TFZ provides investors with modern infrastructure tailored to business needs, ensuring smooth setup and long-term operational stability.
Smooth Business Start-up
- Company registration completed within one working day
- TFZ License issued in 1 day
- 100% foreign ownership permitted
- No minimum capital or investment requirement
- Bank account opening in 1 day
- Full legal, accounting, and HR assistance
TFZ offers full administrative and legal support to enable fastest business start-up among all free economic zones in Georgia.