0% across everything for physical-goods operations.

What you get#

A company operating inside a Georgian Free Industrial Zone (FIZ) pays 0% corporate income tax on qualifying income, 0% VAT on transactions inside the zone and on goods exported from the zone, 0% import duties on goods entering the zone, and 0% property tax on property held inside the zone. For a physical-goods operation that fits the zone-resident model, that's the strongest packaged tax outcome Georgia offers.

The structure has three other clean properties:

Four zones across Georgia. Tbilisi, Kutaisi, Poti, and Hualing. Each has a distinct operational profile. Tbilisi is closer to administrative and logistics hubs; Kutaisi sits on the main east-west corridor; Poti is the Black Sea port zone; Hualing is the Chinese-developed industrial zone in western Georgia. We map the right zone to your activity in the consultation.

Goods can flow in and out without customs friction. Raw materials enter the zone duty-free, get processed or stored, and leave the zone for export — all without Georgian customs duties or VAT applying to the in-and-out movements.

Re-export and processing models are well-served. FIZ status was designed for operations that bring goods into Georgia, do work on them, and send them out. Manufacturing, assembly, processing, packaging, warehousing, and re-export all fit cleanly. Zone-resident companies can also sell into the Georgian domestic market — that's taxed at standard Georgian rates, not at the FIZ 0% rates, with clean accounting separation.

The combined effect: a manufacturing operation importing €2,000,000 of raw materials, processing them inside the zone, and exporting €3,000,000 of finished goods pays no Georgian corporate tax on the €1,000,000 of value added, no VAT on either the import or the export, and no import duties on the raw materials.

What we do#

We handle the full setup end-to-end, mostly remotely. You sign a Power of Attorney at a notary in your country and send us a passport scan plus the documentation that supports your zone-resident application. We register your Georgian company, prepare the zone-resident application with the relevant Free Industrial Zone administration, set up your zone address, and handle the bank account file.

Company registration is 3–5 business days. The zone-resident application then runs separately through the FIZ administration — typically 4–8 weeks for zone-resident registration, depending on which zone and the complexity of your operational profile. Once approved, the 0% rates apply to qualifying activity from that point forward.

Some zone-specific steps require in-person presence — site selection, lease signing, and certain operational sign-offs at certain zones can need a visit. We coordinate so the visit (when needed) is short and focused on the things that genuinely require it.

What's included#

• Eligibility check — we confirm your activity qualifies for FIZ status before recommending the structure
• Zone selection — we recommend which of the four zones fits your operational profile
• Georgian company formation
• Bilingual charter and all founding documents
• Notarisation coordination and remote PoA support
• Zone-resident application with the relevant FIZ administration
• Document coordination through the application review, including responses to requests for additional information
• Zone address coordination
• Bank account file preparation and onboarding support
• A briefing on what to file, when, and how to stay compliant — including the accounting separation for any Georgian-domestic sales

What you'll need to qualify#

Three things. We confirm all three before recommending the structure.

Your activity is physical goods. FIZ is designed for operations that physically work on goods inside the zone — manufacturing, assembly, processing, packaging, warehousing, logistics, re-export. Pure services, software, IT consulting, or other non-physical activities don't fit the zone-resident model. For software companies serving foreign clients, Virtual Zone LLC at 0% corporate tax is the right structure.

Your operation can be located inside the zone. FIZ benefits apply to activity inside the zone footprint. You either lease space inside the zone, build inside the zone, or contract with an existing zone resident for space — the activity has to physically happen there. We work through which zone fits your operational profile (site availability, logistics access, sector concentration) in the consultation.

Your client base is mostly outside the Georgian domestic market. FIZ rates apply to activity inside the zone and to goods leaving the zone for export. Sales into the Georgian domestic market are taxed at standard Georgian rates with clean accounting separation. For most foreign-founded FIZ operations, the entire client base is outside Georgia and the separation question rarely arises operationally; for mixed-market operations, we plan the accounting upfront.

We work through all three in the consultation and recommend the structure that actually fits your situation.

How distributions are taxed#

The 0% Georgian corporate tax means there's no Georgian-side tax on profits before they reach the company's owners. Distributions out of the zone-resident company carry the standard Georgian dividend treatment — typically 5% Georgian withholding, deductible from your home-country dividend tax under the relevant double-tax treaty (Georgia has nearly 50 DTTs in force).

If you become Georgian tax-resident yourself — through the 183-day rule or the HNW programme — the picture gets cleaner still. The 5% withholding becomes the entire tax bill on distributions, with no further dividend tax claimed by Georgia and, depending on your prior residency exit rules, no other country in scope either.

The structural clarity is worth noting: with 0% corporate tax inside the zone, the only Georgian tax in scope is the 5% on distributions. For an operation that retains earnings to reinvest into capacity, equipment, or working capital, the operation pays no Georgian tax at all until distribution.

When Free Industrial Zone is the right structure#

Free Industrial Zone fits readers who:

• Run a physical-goods operation: manufacturing, assembly, processing, packaging, warehousing, logistics, re-export
• Can locate operations inside one of the four zones
• Sell mostly outside the Georgian domestic market
• Want the 0%-across-everything outcome on physical-goods activity

If your activity is software, IT services, or other non-physical work, Virtual Zone LLC at 0% corporate tax for IT companies serving foreign clients is the right structure — VZ is the equivalent regime for the IT sector. If you're a solo professional billing services to foreign clients, IE with Small Business Status at 1% on turnover up to 500,000 GEL/year is the simplest fit.

For physical-goods operations specifically, FIZ is structurally the strongest packaged tax outcome Georgia offers. The trade-offs against the alternatives:

• A non-FIZ Georgian company doing the same physical-goods activity pays standard Georgian rates on corporate income, VAT on domestic and import-related transactions, and import duties on goods entering Georgia. The FIZ delta is real money.
• The operational cost is the zone-residency requirement: your physical operations need to be inside one of the four zones, which constrains site selection and logistics geography to the zone footprints.

For operations whose geography fits one of the zones, FIZ wins decisively. For operations that need to be located elsewhere in Georgia for logistics or workforce reasons, FIZ doesn't apply.

See Compare structures for the full picture across all four offers Happy Georgia sets up.

Why Happy Georgia#

Independent advisory. No tied banks, no referral fees, no hidden product placement. We recommend what fits your situation — including which of the four zones, including a different jurisdiction if Georgia doesn't fit your operation.

Foreign clients only. Our entire practice is foreigners setting up in Georgia. We understand the customs questions a German manufacturing exporter asks, the logistics-routing questions a Turkish logistics operator asks, the zone-comparison questions a Chinese-funded processor asks.

Fixed pricing, no tourist tax. The same rate for foreign and Georgian clients. We quote in EUR, we honor the quote, no surprises later.

Trusted by clients across Western Europe, Israel, the UK, Singapore, and beyond.

Frequently asked questions#

Can I run a Free Industrial Zone company while living outside Georgia?#

Yes. Directors and shareholders can live anywhere. The zone-residency requirement is about where the company's physical operations happen, not about where you live. Most foreign founders manage the company remotely and visit Georgia for site selection, lease signing, and operational milestones.

How long does the full setup take?#

Company registration is 3–5 business days. Zone-resident application is 4–8 weeks at the relevant FIZ administration, depending on which zone and operational complexity. Total from start to confirmed zone-resident status: typically 6–10 weeks. We don't recommend committing to operational timelines that depend on the 0% FIZ rates until zone-resident status is in hand.

Which zone should I pick?#

Depends on your activity. Tbilisi works for operations that need proximity to administrative infrastructure and the main international airport. Kutaisi sits on the main east-west road and rail corridor. Poti is the Black Sea port zone — strongest fit for ocean-import or ocean-export operations. Hualing is the Chinese-developed zone in western Georgia, with sector concentration in light industry and trading. We map the right zone to your operation in the consultation.

What if I sell some goods to Georgian-domestic customers?#

Standard Georgian rates apply to the domestic-market portion: 15% corporate tax on distributed profit from that portion, 18% VAT once the 100,000 GEL annual threshold is crossed. Mixed-market operations need clean accounting separation between zone-export activity (FIZ rates) and Georgian-domestic activity (standard rates). For most foreign-founded FIZ operations, the entire client base is outside Georgia and this rarely arises; for genuinely mixed operations, we plan the accounting structure upfront.

What about employees inside the zone?#

Standard Georgian payroll tax rates apply to employees of FIZ companies — there's no FIZ-specific reduction on personal income tax for employees (unlike International Company status, which does reduce employee PIT for qualifying roles). For zone-resident operations with substantial workforce, this is worth modelling against IC eligibility if your activity also fits the IT/Maritime sector criteria. Most physical-goods operations don't have IC as an alternative; FIZ is the right answer.

Can I import goods into the zone duty-free and then sell them into Georgia?#

The zone-to-Georgia movement triggers Georgian customs duties and VAT — at that point the goods are entering Georgian customs territory. The FIZ benefits apply inside the zone and on goods exported from the zone for foreign markets. Sell-into-Georgia from the zone is permitted operationally but carries the standard Georgian customs and VAT treatment.

Can FIZ status be revoked?#

Yes, if the company's activity changes materially or stops meeting the zone-resident operational requirements — substantive activity outside the zone, conversion to non-qualifying activity, failure to maintain the zone-residency basis. We brief you on the documentation and operational discipline that keeps the status clean over time.

Does FIZ help with Georgian residency?#

It can. An active FIZ company supports residency permit applications. Foreign founders and directors of Georgian companies are categorically exempt from the 2026 work-permit rules under Law №1509 of April 2026. See Residency & Permit.

What about my home-country tax on FIZ profits?#

Your FIZ company pays 0% corporate tax in Georgia on qualifying activity. The 5% Georgian withholding applies when profits distribute. What you owe in your country of residence depends on that country's rules and its tax treaty with Georgia (nearly 50 DTTs in force). The 5% Georgian withholding can typically be deducted from your home-country dividend tax under the relevant DTT. We discuss this in your consultation.

Ready to set up?#

We assess whether FIZ fits your situation in a free consultation, recommend which of the four zones matches your operational profile, and quote a fixed price. If a different structure fits better — Virtual Zone LLC for software activity, International Company for IT operations with operating history, IE with Small Business Status for solo work — we tell you.