Of course, everyone has already heardabout Georgia, a small country in the Caucasus, located between Europe and Asia on the historic "Silk Road" and which has been attracting foreign investors for about ten years now. Law after law, from economic reforms in tax exemptions, to the simplicity of its administrative procedures for setting up a business, along with its ultra simplified accounting, Georgia has become the ninth lowest taxed economy in the world and the ninth economy. According to the World Bank's "Doing Business 2018" index, it is a great place to do business.
For 2018, the IMF has forecast a 5.5% growth of the Georgian economy. According to Georgian economic expert Irakli Makalatia, these forecasts are quite realistic, but rather conservative. Makalatia analyses that, in order to achieve stronger economic growth, the State should use all the resources at its disposal. "We have assets that are not being used. I am talking about assets that belong to the state but have a current economic value of zero. They are not used by the State or the private sector. They are in fact the equivalent of a buried treasure".
Credo Bank in partnership with Traktor Technologies have launched www.kalo.ge, a service platform for Georgian farmers. The platform was financed by a grant from the European Development Fund for South-Eastern Europe to promote agricultural enterprises across the country. In order to provide support to rural households, USAID Georgia was also actively involved in the development of the platform. Kalo represents an important step for the development of the agricultural sector in Georgia.
More and more foreign investors are thinking of setting up companies in Georgia. Call Centers are particularly popular for several years now. Here is an interview with J., owner and director of the DsPro Call Center, providing some key information on how to open and maintain a call center in Tbilisi.
It will be harder for foreigners to obtain a residence permit in Georgia. The legislator is considering amending the law and a new draft law has been prepared to this end. Currently, by law, a foreigner can be granted a permanent residence permit if he or she makes an investment of at least 300,000 GEL or if he or she purchases real estate with a minimum value of $35,000. The bill increases the amount of the investment to $300,000 and the value of the property to $100,000.
Georgia has become a regional leader in the use of Blockchain technology. The world's first cryptocurrency terminal was born in Tbilisi. Tbilisi could become an important platform for the Blockchain in the coming years. The capital of Georgia is hosting the World Digital Mining Summit 2018 from 21 to 23 September. This summit will bring together more than 100 experts from more than 30 countries, including the Chinese blockchain giant, the United States, the United Kingdom and other European countries to discuss the opportunities and challenges of the Blockchain, including the development of crypto-criminality.
“Georgian banking system is trustworthy and our world’s investors are our shareholders,”said businessman Mamuka Khazaradze, the main operator in the construction of the port of Anaklia, a future Georgian Free Zone.
Georgia must become a hub of international trade, said Finance Minister Ivane Machavariani at a hearing in the Georgian Parliament.
The first fruit freezing plant opened in June 2018 in Kareli. It required 2 million euros of investments and processes 4,000 tons of fruit per season. Today, the company employs 130 people and its growth outlook is very interesting due to strong global demand.
On 14 and 15 June 2018, the city of Batumi, on the shores of the Black Sea, hosted the 15th Georgia's European Way Conference attended by senior officials from the country and the European Union. This event provides a platform for meetings and discussions to highlight the increasingly close links between the EU and Georgia.
The Ministry of Education of Georgia will now allow teaching only in universities that meet high academic standards.
Mamuka Bakhtadze, the new Prime Minister, wants to cut taxes even further to attract large international companies to the country. In 2017, Georgia set a record for Foreign Direct Investment (FDI). Analysis of their structure suggests that high-technology investments must progress. The issue of investment in advanced technologies is becoming a priority for the new government, which will propose an ambitious plan in the coming months.
The Free Trade Agreement (FTA) between Georgia, Switzerland and Liechtenstein entered into force on 1 May 2018. The new agreement is attracting great interest and the FTA trade promotion seminar attracted several hundred participants, private companies and government officials.
Once flourishing, the agricultural sector is becoming one of the priorities of the Georgian government, which is relying on foreign investment to boost agriculture in Georgia. Georgia's enabling climate and fertile soil make agriculture one of the country's most productive economic sectors. Thanks to the 22 micro-climates present in the country, a great variety of fruits and vegetables are cultivated. And they are of very high quality, 95% organic...
( Remarks received from the President of the Georgian Swiss Business Association, Ms Nona Mamulashvili)
The coming into force on 18 May 2018 of the Free Trade Agreement between Georgia and the European Free Trade Agreement countries (Switzerland - Norway - Iceland - Lichstenstein) offers Georgian entrepreneurs a unique opportunity to export their products to a market of 14 million customers with high purchasing power, without tariff and non-tariff barriers. Through this Free Trade Agreement, the Parties will facilitate the increased participation of the private sector, in particular small and medium-sized enterprises, in trade cooperation between the EFTA States and Georgia.
The Georgian and European electricity grid connection project is on track. "The project could be the size of the Baku-Tbilisi-Ceyhan pipeline," said Zviad Chumburidze, secretary general of the European Union-Georgia Business Council. This connection to Europe would be through an underwater power line.
The International Monetary Fund has revised upwards its growth forecasts for the Georgian economy, which will grow by 4.5% in 2018 and 4.8% in 2019.
If investment in the tourism sector is your business, Georgia is probably one of the best destinations today. This sector is growing, costs are low and the Georgian Government is very determined to attract investment by making it very attractive for tax incentives.
The pearl of the Caucasus, surrounded by mountains, has become a secret less and less well kept. Over the past decade or so, Georgia has undergone an astounding and remarkable transformation. Initiating a series of deep reforms of its economy, hailed by the World Bank as the world's first economic reforming country, this former Soviet Union republic went from a near failing state in 2003 to an increasingly well performing market economy in 2018.
The Director of the European Bank for Reconstruction and Development (EBRD) for the Caucasus, Moldova and Belarus, Bruno Balvanera, believes that investors are "really interested" in Georgia.
Georgian Airways opened a direct flight to Paris-CDG and Brussels on Tuesday 27 March 2018. Georgia's national airline now offers two flights a week between its Tbilisi-Shota Rustaveli base and Paris-CDG
34 countries participated in the Silk Road Forum in Tbilisi. "...Georgia is becoming a platform for international dialogue with the aim of increasing the volume of trade, attracting investments and developing infrastructures" underlines Genadi Arveladzé, Deputy Minister of the Economy of Georgia...
That is the question...which was answered a few weeks ago by a French deputy, the head of a company abroad. He was questioned about the tax optimization practices of multinationals and defended tax optimization while claiming that he had "not done tax optimization on a personal basis".