The development of the Internet has opened up many opportunities for companies. And among these, software companies are in pole position. Software export is the main source of revenue for a large number of IT companies operating worldwide. There is one country that does not levy taxes on the income of IT companies, namely Georgia in the Caucasus.
Among the many industrial sectors that are doing well in the global economy, information technology is certainly at the top. Information technology has become one of the most favourable sectors for creating jobs and making profits. However, the sector also needs incentives and a level playing field to be competitive at the highest degree. This is what Georgia offers in the form of Virtual Zones.
Offshore bank accounts are legal. It is perfectly legal to conduct banking transactions on personal bank accounts or offshore bank accounts. But they must meet the requirements of the tax authorities of your country of residence, which in many countries require this type of account to be declared.
The status of Virtual Zone is a legal entity in Georgia and is similar to the Industrial Free Zones regime in Georgia. The status of virtual zone offers many tax incentives but these are reserved for IT companies. The main tax advantage is the absence of taxes on income from the export of computer services and products such as software.
You probably know most of the famous tax havens such as the Bahamas, the British Virgin Islands, the Seychelles, the Cayman Islands, Belize, the last one to hit the screen being Panama... there are tax havens all over the world, the United States and its Puerto Rico territory, being perhaps the most popular at the moment because outside the OECD radar and the Automatic Exchange of Information (banking). So is Georgia in the Caucasus.
While offshore banking operations around the world - from the Caribbean to Asia - have become increasingly difficult to open (especially for Americans), Georgia remains one of the easiest places in the world to open an offshore personal bank account.
One of the advantages of Georgian tax legislation for the Information Technology sector, both for local and foreigners, is the avaibility of a special status. The "Virtual Zone Entity" is a legal entity operating in the field of Information Technology to which the Georgian tax administration has granted a special status: Profits generated by a VZE from the sale of IT services outside Georgia are exempt from Tax.
Opening a single international business bank account can expose you to certain risks. The solution to this problem is to open a second business bank account in another jurisdiction. In Georgia, you can open a corporate bank account remotely, you have the possibility to open this corporate bank account in multi currencies and no minimum deposit is required.
Tens and tens of millions of people around the world have their money in offshore accounts. Politicians, wealthy investors, celebrities are taking advantage of offshore banking opportunities. Whether you are a European citizen, an American citizen or an expatriate living abroad for any reason, you can legally benefit from an offshore account. Opening an account abroad offers a legal alternative to protect your money.
Offshore banking services allow for greater financial confidentiality. Having a personal offshore bank account in Georgia allows you to enjoy many financial benefits and perform banking transactions abroad in exactly the same way as your personal bank account would allow you to do in your country.
Starting a business in Georgia is a simple process. Incorporation procedures are very limited, efficient and easy, based on a transparent system that encourages the creation of new businesses.
The transition from a quasi-failed state in 2003 to a market economy, now described as efficient, is one of the major achievements of Georgia in the Caucasus. In 2007, the World Bank recognized the country as the world's leading economic reformer and has always ranked the country at the top of its "Ease Doing Business" index. Georgia is ranked ninth in 2018. Here is an overview of Georgia's ranking according to several Western indices. Not so bad for a country that half of the mortals don't know.
One of the most attractive tax systems in the world. According to the World Economic Forum's Global Comptetitiveness Report, Georgia in the Caucasus is the ninth lowest-taxed economy in the world.
Why is tax optimisation so little known?
As everyone knows, taxes have become excessively heavy in taxpayers' budgets, particularly in Western Europe. Everyone, whether an entrepreneur or an individual, should look for ways to reduce this tax burden, which is becoming quite unbearable. One solution is tax optimization. It is a legal solution that allows you to pay less taxes. But then, why is tax optimization still so little known?
The pearl of the Caucasus has become a less and less well kept secret. Today many business leaders, consultants, expatriates choose this Eurasian country as a place for business creation, work and family education. One of the first things to do is opening a bank account.
Having an offshore persoanl bank account is totally legal. Even if you are a foreign resident, opening an account abroad, especially in Georgia of the Caucasus, is quite possible!
The are many advantages of having a company based in a Free Zone in Georgia (Caucasus: Strategic, Operational and especially Tax. Gurian Consulting Tbilissi explains why.