Investing in Georgia: Georgia is Europe’s most popular investment destination and fastest growing economic market

Georgia has become one of the most important tourist areas that may direct the attention of tourists, students and those wishing to find distinctive job opportunities, and due to this great turnout, economic conditions in Georgia have changed recently, as it has become one of the most powerful countries controlling all its economic resources, and the numbers have increased. Investors in the course of several years significantly.

Investing in Georgia: Georgia is Europe’s most popular investment destination and fastest growing economic market

Why has Georgia become one of the most important economic cities in the world? One of the main reasons that have led to the prosperity of the economy in Georgia is the low standard of living for all residents within it without exception, and thus this has succeeded in attracting the largest possible number of tourists to it in order to enjoy and relax at no cost, and in view of that came the idea of ​​investing in Georgia.

As some businessmen made good planning in order to build the largest tourist hotels and establish resorts on some tourist islands in Georgia, but it was not limited to tourism investment only, as investments diversified within Georgia, and here are the most important factors, results and types that encouraged businessmen to invest In Georgia.

Reasons pushing businessmen to invest in Georgia

The matter of investing in Georgia is not limited to investors of Georgian citizenship only or foreigners, but many Arab investors from Saudi Arabia, Qatar, Kuwait and Egypt have flocked to the country of Georgia to get an opportunity for good investment, and here are the most important reasons for investing in Georgia compared to Arab countries .

Uncomplicated commercial procedures in Georgia

Despite the success of investment in the Arab countries, but it is not much enough for foreign businessmen, as there are many routine procedures that may make businessmen bored from continuing the project to be implemented, but the matter differs a lot in Georgia where all are presented Possible assistance in order to extract the necessary papers to complete the project, and for this, and compared to the speed of implementation, many investors in Georgia desire for rapid investment.

Providing manpower at the lowest cost in Georgia

One of the most important laws followed in Georgia with regard to labor, is the lack of high wages, as happens in some Arab countries in private companies and factories, and therefore one of the most important reasons thanks to the investors in Georgia is to determine wage rates and not exaggerate, in addition to the efficiency and quality of work In all disciplines.

The plurality of commercial markets in Georgia

In some Arab countries, the matter may be limited to certain commercial markets that are invested in without thinking about another area, and the real reason for this may be due to the nature of the geographical country, as some countries may be industrial or agricultural only, but in Georgia it is very profitable as it varies Specializations in all commercial markets due to the presence of all necessary resources to build the project.

Tax payments facility in Georgia

We may sometimes find a lot of exaggeration with regard to paying taxes in some Arab countries, which leads to the alienation of some investors and distancing themselves from the idea of ​​investing in those countries, but in Georgia it is different as the types of taxes have been allocated at the lowest costs to attract the largest number of investors Here are the most important types of taxes allocated to investors and local residents.

Types of tax payments in Georgia

• Customs tax – is not fixed at a specific rate, as its rate ranges between 0% – 5% – 12%.
• Income tax may reach 20%.
• Corporate tax may reach 15%.
• The real estate tax may reach 1%, depending on the type of property
• The value-added tax may reach 18%.
• Excise tax is not fixed at a certain rate.

The most important diversified areas of investment in Georgia

Investment fields in Georgia vary according to the geographical nature, as we mentioned, as we may find some investors have turned their eyes to the field of real estate investment due to the demand of students and expatriates to reside in Georgia, or direct attention, i.e. the establishment of some agricultural projects due to Georgia’s full dependence on agriculture, and so on There are many fields, and job and investment opportunities are increasing day by day. Here are the most important details about some of the areas offered for investment in Georgia.

The most important information about the field of industrial investment in Georgia

We had previously talked about the advantages of not increasing the tax value in Georgia, which led to the desire of some investors to establish some varied factories in Georgia. Their industrial products are to all neighboring countries that lie between the continents of Asia and Europe.

Advantages of industrial investment in Georgia

There is no room for cheating or tampering with manufacturing materials, as the state of Georgia has put in place some strict laws for more than eighteen years, against anyone who tries to manipulate in the matter of the industrial field, as investors cannot build factories in places contrary to, or provide bribes. In order to finish the business, and thus this has led to Georgia’s success in obtaining international certificates proving its efficiency in achieving the highest economic rates in the world.

Ease of cooperative exchange between the government and investors, as we mentioned earlier that there are some countries arbitrarily in clearing papers for ending the construction of factories or facilitating procedures with regard to exporting manufactured products, but in Georgia the matter is done easily and easily where customs works are extracted.

One of the most important features that the state and investors are interested in in the industrial field, which is preserving the rights of workers, and this experience has succeeded with creating a balance between the monthly salaries of workers and the taxes imposed on them. Georgia is one of the Arab groups.

The most important information about real estate investment in Georgia

Based on what has been mentioned, the tourist turnout in Georgia has led to directing the attention of investors to the establishment of many tourist hotels in all the preferred places designated for tourism, and Georgia contains hundreds of natural tourist places, on which some tourist facilities have been established.

Reasons why investors are investing in real estate in Georgia

The state in Georgia facilitates procedures for what is related to travel to it, as some Arab peoples, such as Egypt, Kuwait, Saudi Arabia and others, are granted free visas that allow them to travel to all internal cities, without any restrictions, as many of the arrivals resort to renting one of the rooms in one of the real estate Therefore, real estate investment is one of the most successful areas.

One of the most important reasons that led to the increase in investor demand for the idea of ​​real estate investment, is the beginning of the increase in the number of residents in industrial and commercial areas to work in, in addition to the increase in the number of students coming from all over the world to study in Georgia, and of course the demand for residential apartments in that period in a continuous increasing.

The most important information about the field of agricultural investment in Georgia

The real reason that has led to the development of the economy in Georgia is to expend all effort and energy in order to attract the largest number of investors, through some customs facilities that have been recently placed on more than 860 agricultural products, and these facilities have been imposed based on some Prior agreements for free and comprehensive trade pertaining to the European Union, independent countries and some East Asian countries.

Reasons why investors are investing in real estate in Georgia

 Agriculture in Georgia occupies a prominent position in agricultural investment, as agricultural areas occupy 18% of the total land, and the state has been keen to provide a helping hand to some new investors, as the cost price related to the purchase of agricultural land has been reduced, which has reached 25% in 2019, in the event that some agricultural processing factories are desired.

Some grants provided by the government in Georgia have been allocated to motivate investors to set up factories for agricultural processing, and the percentage of the amounts paid in these grants reached about 30% in 2019, equivalent to $ 250,000, and in addition to all these facilities, they have contributed to reducing costs. Operating in those factories to attract more investors.

The most important information about investing in livestock production in Georgia

Due to the ease of raising sheep and cattle of all kinds in Georgia, many investors have resorted to the idea of ​​purchasing natural pastures that reside in that country incredibly, as the workers in those countries provide the largest possible means for the development of livestock during these years.

Reasons why investors are investing in livestock production in Georgia

Georgia has the highest percentage in the process of exporting sheep and cattle meat to Arab countries, as many Arab slaughterhouses want to import these cattle due to the low cost price and the presence of the product, as the cost of some sheep sometimes reaches about $ 192, which is equivalent to 3000 Egyptian pounds if We took the Arab Republic of Egypt as an example.

Animal products in Georgia are considered the best products, as the Georgian sheep is one of the finest types of livestock that can be sold to Arab investors, as these sheep are raised in the freedom pastures, and therefore the best types of leather, wool, milk and meat are extracted annually, while preserving some The products are sold locally.

How to start a business in Georgia for new investors

Before starting to think about the abundant profits that you can get from the investment process in Georgia, you must first stop for a moment and do not rush, as it is necessary to think first before starting the project, as it is better to find a specific project idea that you can rely on, meaning that in In the case of thinking about establishing a factory, for example, it is necessary to choose the appropriate place to establish the project, choose sufficient numbers of manpower to provide products, and to know all the laws necessary in the country to legally establish the project so that you will not be exposed to the problem of stopping the factory if any violation is discovered. .

Steps to establish a successful business in Georgia

The first step: Determine a specific capital to start the project

According to the idea of ​​the project, the capital is determined, as huge sums are allocated in building vital projects such as establishing factories or tourist hotels, and the cost of some projects such as buying a small property or buying some small shops that increase the demand for them in several seasons, and thus The minimum capital must be determined so that the project does not collapse.

The second step: Register for taxes to start the project in Georgia

This step is not generalized to all companies, but it is considered one of the most important steps imposed by the government in Georgia, as the commercial law in Georgia stipulates the need to obtain the tax ID of the company or factory so that the investor can open a bank account and give salaries to employees, knowing that it is The ID must be obtained to determine the taxes imposed on the company.

Third step: Use bank and credit accounts designated for business in Georgia

Some new investors make the mistake of using the personal bank account in business, as sometimes some companies suffer a heavy loss and some legal accountability by the state or other businessmen, and therefore, all the investor’s property is seized in case of resorting to the court.

That is why the investor must create a separate commercial account, so that the investor can conduct a lot of financial transactions belonging to the company, which is concerned with paying salaries for workers and buying industrial resources to be manufactured, and the Georgian state has provided many simple steps to open a personal or commercial bank account.

The fourth step: obtaining the necessary permits to start the project in Georgia

You cannot work in Georgia or in any other country if you do not obtain prior permission from the governments in which the investors want to work, and in which this document is extracted and applied according to the country in which the investor wants to establish the project, and if we mentioned, for example. If the permits are extracted from the city of Batumi, then you cannot establish the factory in Tbilisi, as each city belonging to Georgia has its own laws.

Also, each project has its own permits, as commercial declarations differ from real estate declarations and so on, and one of the distinguishing things to extract the permit is the speed of extracting papers, as in some countries positions for commercial transactions are used to accept bribes in order to facilitate procedures, but in a country like Georgia The application for obtaining a permit is dealt with in a specific time without resorting to any circumvented methods or requesting excessive payment of costs.

Fifth step: A proven contract is required in case the company is purchased

Some businessmen do not prefer the idea of ​​building the company from the beginning of laying the foundation stone until the end of construction, and therefore some resort to the real estate purchase process through the owner of another company who wishes to sell his company or through a licensed real estate broker, and in the event that an agreement is reached, it is necessary. Writing a proven contract that does not violate the terms of real estate purchase.

One of the most important items that must be written in this contract is the name of the company or factory to be purchased, then all the information must be written in English and of course the contract must also be written in the Georgian language, and then the contract must be documented in the House of Justice affiliated with the Real Estate Department, and the presence of The second party to sign the contract.