Free Industrial Zone Company in Georgia: the Tax Deal

A Free Industrial Zone (FIZ) company is Georgia''s tax tool for international trade and manufacturing. Done right, it offers a near-zero tax footprint; done wrong — by selling into the local market — it loses much of the benefit. This guide explains what FIZ companies get, the key catch, and who should consider one.

The headline benefits

A FIZ enterprise generally enjoys 0% corporate income tax on profit from FIZ activities, 0% VAT on imports into and exports from the zone, 0% customs duties on goods imported into the zone, and 0% property tax on assets within the zone. For a genuinely international trade or production business, that is a powerful package.

The 4% catch on domestic sales

The benefits are built for international business, not the local market. When a FIZ company supplies goods to a Georgian (mainland) company, a 4% tax applies on the consideration (supplies between FIZ enterprises are excluded). And selling into Georgia proper can pull those transactions into normal taxation. In short: FIZ rewards export and production, not domestic commerce.

Where the zones are

The main Free Industrial Zones are in Poti (port), Kutaisi (manufacturing), and Tbilisi (trade and logistics). The right zone depends on your logistics — port access, production, or distribution.

Who it suits

• Manufacturers and assemblers producing for export;

• Trading companies moving goods internationally through Georgia;

• Businesses that do not rely on selling into the Georgian domestic market.

If your customers are mostly inside Georgia, a FIZ is usually the wrong tool — a standard company or another regime may fit better.

Frequently asked questions

Is a FIZ company really 0% tax?

On qualifying international FIZ activity, largely yes; domestic sales trigger a 4% tax and can face normal taxation.

Where are the zones?

Mainly Poti, Kutaisi, and Tbilisi.

Is FIZ good for a local-market business?

Usually not — the benefits are designed for export and production, not domestic sales.

Whether a FIZ beats other regimes depends on your trade flows — a short review can compare it against a standard or IT structure. This article is general informational and SEO/legal-information guidance, not tax advice; treatment depends on your facts and current law. — Legal.GE NewsMaker