Investment Methods in Georgia

In recent years, Georgia has been the focus of immigrants from all over the world, especially Iranians, due to good tax laws and high investment opportunities. Georgia because of its proximity to Europe, Asia and the Middle East and being in a purely strategic area, is a bridge between these regions. One of the ways to obtain Georgian residency is to invest in Georgia. Here are some tips to help you become more familiar with the different ways to invest in this country.

Types of investments in Georgia include:

1Investment in agriculture and food industry

2. Investing in real estate

3. Company registration in Georgia

4. Invest in Georgia by buying government bonds

5. Various Industries in Georgia

1- Investment in Georgia’s agricultural industry:

According to the Georgian Chamber of Commerce, affiliated with the Georgian Ministry of Economy, investing in Georgia’s agriculture is very beneficial and profitable given its proper climate.

Important factors such as: low agricultural land prices, uniform rainfall throughout the year, abundance of water resources and high quality of soil in Georgia, as well as low prices make all types of energy such as water and electricity and gas, investment in Georgian agriculture highly desirable.

Due to the shortage of water and agricultural problems in Iran and the availability of export conditions from Georgia to Iran as well as the short distance between the two countries, by injecting capital into Georgia’s agricultural sector, Iranian investors can export their produce to Iran. Investors can also use the market to export $ 900 million worth of free trade to Free Trade Zone countries including Turkey, Ukraine and the CIS and the European Union.

Georgia’s hazelnut and walnut have a worldwide reputation. Cucumbers, tomatoes and potatoes are among the most important crops produced in Georgia. On the other hand, setting up a greenhouse for fruit production can also be a good idea to invest in Georgia’s agricultural sector.

It should be noted that in recent years, one of the major obstacles for Georgia to invest in agriculture and animal husbandry has been the passage of the Law on Non-Sale of Agricultural Land to Foreigners. As a result, the only way for foreign investors to enter the agricultural sector is to rent agricultural lands. In this case, the investor must lease the land for a long time, such as 99 years from the landowner, as stated in the contract, which is set forth in Georgian official documents that the land will be rented to the rental investor for 99 years to pay the specified rent.

2. Investment in real estate

Investing in Georgia by buying real estate has become one of the fastest paths to economic growth in Georgia. In recent years, Georgia has seen a dynamic growth of international visitors with annual growth rates of 8 to 10 percent. Applicants can pay $ 35,000 to buy property in the country. After this stage, the buyer will be granted a one-year residency which is renewable annually and after 6 years he will be granted permanent residence. In the following there are some important things to keep in mind.

• The buyer can extend his residence or even sell his property for 6 years. The point is that in order to extend the annual residency, another property worth at least $ 35,000 has to be replaced or should extend the residency through other ways such as working residence.

• • If the property is purchased in installments or the property deed is not prepared, even if more than $ 35,000 is paid, the person will not be granted residence.

There are several ways to invest in Georgian real estate. You can work as a construction contractor or make a significant profit by buying and renting property.

According to the above, foreign investors have good investment opportunities in the development of hotels, hotel flats, rented apartments and resorts in Georgia and thus can obtain residence in Georgia. Georgia has two free tourism zones called Anaklia and Kobuleti, in which hotel construction projects are booming. For investments in Georgia and getting permanent residence in this country, construction in the cities of Tbilisi and Batumi, which have recently received more attention, can be considered.

3. Investing in Georgia through company registration

Registering a business in Georgia is another investment option in Georgia. Like many countries in Georgia, it is possible to establish a branch office of the company of country of origin. If a new company is registered according to the requirements of this country, it will be possible to achieve successful results sooner and with less hassle. For example, companies registered in the four cities of the Free Trade Zone enjoy special tax exemptions and deductions.

Foreign businessmen who intend to open a business in Georgia can choose one of the types of companies in accordance with national laws. Investors can choose between a limited liability company, a joint stock company or a LLP company. All company documents must be translated into the local language for registration. In addition, citing the provisions of the Hague Convention, documents must be approved in the country of origin. It should be borne in mind that the person’s presence is required during all stages of the company registration process. These steps are possible within a week.

It is important to note that registering a business in Georgia and obtaining a Georgian residence are two distinct topics. You cannot stay in Georgia very quickly by registering a company in Georgia. Those who intend to reside in the country by registering their company must pay taxes of the registered company monthly and yearly to show that the company is active. However, if an investor be able to raise his / her annual financial transactions to 120,000 $ in Georgia, he / she can initially obtain a permanent residence permit for a period of 5 years.

4. Invest in Georgia by buying government bonds

Like many other countries in Georgia, foreigners can also invest in government bonds. This type of investment is tax exempt. In this case, you can participate in various projects in Georgia through the purchase of municipal bonds. The Urban Bond Fund is designed to meet a large part of the government’s needs with the participation of the public in advancing major urban development projects such as schools, subways, museums, parks, hospitals, roads and the like. In return for this partnership, annual interest will be tax-deductible to bond buyers.

5. Investment in Georgian Industry

Companies operating in Georgia can seize favorable market opportunities and focus more on industries that can replace regional imports.

Industries including food processing, chemicals, plastics, building materials, packaging, household goods.

Georgia’s electricity is high, because 80% of Georgia’s electricity is currently supplied by hydroelectric power plants. Factories with an average electricity consumption of more than one million kWh buy power from electricity producers.

In Georgia’s industrial sector, the average monthly wage is $ 355, and because of the high unemployment rate, the wage rate seems not to have increased significantly. A number of investment opportunities in Georgian industrial production include apparel and textiles, detergents, building materials, putty and plaster, paint and varnish.

Georgia’s free industrial zones are located in the towns of Poti, one of Georgia’s main ports, Kutaisi, Georgia’s third largest city, and Tbilisi, Georgia’s capital. Businesses based in free industrial zones are subject to special tax exemptions, as well as the management of all free industrial zones is by private companies.

Packaging Industry: Given Georgia’s considerable need for the packaging industry in all areas of domestic production and export and the good growth it has had in recent years, investing in this area is one of the beneficial ways. The good thing about Georgia’s Packaging industries is that it has good government support because of its significant share in the manufacturing industry. Though should be kept in mind that some of the packaging industries in Georgia need high capital to build and operate.

Tourism industry: Investing in tourism can also be one of the successful ways of investing in this country. Given the good growth in Georgia’s tourism industry, investing in this sector can be a safe and profitable way if it is invested with sufficient knowledge and capital. Among the sectors related to the tourism industry are investing in restaurant, hotel and so on. Given the growth in tourism and the scarcity of hotels in Georgia, especially in the capital, investing in this sector is one of the best ways. A part of the Georgian tourism industry is the sector of the service industry, such as the construction of tour operator companies in Georgia.

It should be noted that the Georgian government is reluctant to invest the foreign nationals in the service sector and believes that the Georgian people themselves are capable of running the service sector. The Georgian government is keen to attract investment in its manufacturing sectors. Therefore, those who intend to invest in manufacturing sectors in this country will have a greater chance of receiving support from the Georgian government.

Investing in Georgia and its Standards

Along with all the opportunities and benefits of investing in Georgia, it must be borne in mind that investing in Georgia has many risks, so it is important to carefully research its various aspects in order not to fail. Investigating standards in a country can be very helpful in identifying investment security. It is also helpful for a successful investor to use the advice of expert consultants in this field.