How Georgia’s Free Trade Agreements (EU, China, CIS) Benefit Your New Business
- Tinatin Tolordava
- Jul 31
- 10 min read
Table of contents
Why Georgia’s Free Trade Agreements Are a Big Deal for New Businesses
If you’re planning to register a company in Georgia, don’t just look at the tax rate. Look at market access. Georgia’s real advantage is that your Georgian-registered business can legally sell products and services to over 2.3 billion people with zero customs duties.
That’s because Georgia has free trade agreements with the EU, China, CIS, Turkey, UK, and more.
These deals aren’t symbolic. They cut tariffs, open distribution channels, and simplify red tape. That’s rare. And that’s valuable.
With the right setup, your Georgian company becomes a base for international trade. A small warehouse outside Tbilisi can ship to Berlin. A SaaS tool developed in Batumi can onboard users in Shenzhen.
But here’s what many foreign founders miss. You don’t get access to these trade benefits just by opening a company. You need to structure your operations in line with agreement rules. You need proper compliance. And you need proof of Georgian origin.
Gegidze handles that for you.
Georgia’s Free Trade Network: Who You Can Trade With
Georgia has bilateral or multilateral FTAs with:
The European Union (DCFTA)
China
CIS countries (including Ukraine, Moldova, Armenia, Azerbaijan, Kazakhstan)
Turkey
United Kingdom
EFTA countries (Switzerland, Norway, Iceland, Liechtenstein)
Hong Kong
UAE (signed in 2023, ratification pending)
This means you can sell Georgian-origin goods and services into these countries without paying standard customs tariffs. It also means simplified border checks, mutual product recognition, and faster processing.
This is especially important for businesses in manufacturing, tech, food and beverage, textiles, real estate investment, and B2B trade.
And if you’re not a Georgian citizen, it doesn’t matter. Foreigners can own 100% of a Georgian LLC and still qualify for full benefits, as long as your business meets the export documentation standards.
The EU-Georgia DCFTA: Your Gateway to 450M Customers
Georgia’s trade deal with the European Union is called the DCFTA: Deep and Comprehensive Free Trade Area. It covers nearly all goods and services, making it one of the most powerful economic tools for Georgian companies.
You can export products made or assembled in Georgia to any EU country without customs duties. That includes Germany, France, Italy, the Netherlands, and all major European buyers.
But this isn’t automatic. Your company must prove that the goods are Georgian-origin. That means:
Using local production inputs or Georgian labor
Following EU-compatible product classification (HS codes)
Issuing a certificate of origin (usually via Chamber of Commerce)
Ensuring packaging, labeling, and documentation meet EU regulations
If you mess this up, your shipment can get rejected. Or you may lose the 0% tariff and have to pay full import duties.
For example, a German company importing wine from Georgia pays 0% customs if the product is properly declared under the DCFTA. But if the exporter fails to provide proof of origin, standard EU duties apply.
That’s where we come in. Gegidze sets up your export-ready LLC, ensures your supplier chain is correctly documented, and handles your product classifications, so you don’t miss out on EU trade privileges.
And no, this isn’t just for agriculture. Software companies, digital service providers, and SaaS startups can also benefit, especially if they invoice EU clients and operate from a Georgian base.
Trading with China: A Quiet Competitive Edge
Georgia signed a Free Trade Agreement with China in 2017. It was the first country in the region to get one.
Since then, thousands of Georgian businesses have gained preferential access to China’s massive consumer base. If you’re building a business that produces physical goods, this is an opportunity worth taking seriously.
Key sectors include:
Wine and spirits
Organic agriculture
Processed foods
Natural cosmetics
Nutraceuticals and supplements
Software and IT services
Under the FTA:
Over 90% of Georgian exports are tariff-free in China
There are no quotas on volume
Customs procedures are faster and more predictable
Here’s a common scenario. You register a Georgian company. You partner with a local honey producer. You brand and package the product under your LLC. You export it to Shanghai using a Georgian certificate of origin. You pay no customs tax in China.
That model works. But only if you set it up right from day one.
Gegidze has supported multiple foreign investors building Georgian companies specifically to serve the Chinese market. We help structure the local operations, source products, and handle the export documentation required for tariff-free access.
You can’t fake your way through this. Customs authorities check origin closely. You need Georgian invoices, bank statements, and production inputs to match.
The CIS Trade Agreement: Speed and Simplicity for Post-Soviet Markets
Georgia also participates in the multilateral CIS trade agreement. This includes Armenia, Ukraine, Moldova, Kazakhstan, Belarus, and others.
Even though Georgia isn’t part of the CIS politically, it still honors the free trade terms. That means your Georgian company can export products and services to these countries with:
No customs duties
Simplified inspection
Local recognition of Georgian conformity certificates
This is ideal for companies trading in:
Industrial parts
Construction materials
Agricultural machinery
Packaged foods
Textile goods
Hospitality and furniture
For example, if you’re importing low-cost materials from Türkiye, assembling them in Georgia, and shipping to Kazakhstan, you can avoid double tariffs and qualify for duty-free access in both directions.
Many foreign entrepreneurs don’t realize they can base operations in Tbilisi and tap into both the EU and CIS markets at once. That’s rare. And it makes Georgia a unique hub for cross-border operations.
Services Count Too: What If You’re Not Exporting Goods?
The free trade agreements aren’t just for products. Many of them include provisions for service providers too.
That includes:
Software development
SaaS
Business consulting
Marketing services
Architecture and engineering
Education and e-learning
In these cases, the key is where your business is legally based and how you invoice. If your company is registered in Georgia, operating from Georgia, and invoicing EU or Chinese clients, you can benefit from simplified VAT treatment and corporate tax optimization.
But here’s the catch. You must register with the correct legal status. The bank account, office setup, contracts, and invoicing methods all need to be aligned.
That’s what we help you do.
Many software teams try to wing it, set up a Georgian LLC, invoice EU clients, and think they’re good. But then comes a rejection from the VAT refund office. Or a red flag from customs. Or a frozen payment due to a mismatch in declared origin.
Gegidze prevents that. We’ve helped digital agencies, dev teams, and SaaS companies structure their operations to meet the legal thresholds that make free trade benefits accessible.
Don’t Just Register. Structure It Properly.
There’s a misconception floating around: that registering a company in Georgia is enough to benefit from its free trade agreements.
It’s not.
Without correct classification, documentation, and local compliance, your goods or services won’t qualify under most trade rules, even if you legally operate in Georgia.
That’s where things fall apart for foreign entrepreneurs.
Some forget to obtain a certificate of origin. Others invoice from foreign bank accounts. Some use international suppliers and skip the Georgian value-added threshold entirely.
These are technical mistakes, but they can kill your eligibility.
That’s why Gegidze doesn’t stop at business registration. We structure your setup based on how trade actually works. That includes:
Choosing between LLC or I.E.
Registering your business address correctly
Connecting with accountants who file through RS.ge
Helping you choose the right tax regime for export compliance
Sourcing inputs that meet local origin rules
Registering you for Virtual Zone or International Company status if applicable
Getting all your product documentation translated and approved
And most importantly, we make sure your exports don’t get held up at customs because of sloppy paperwork.
The Real Documents That Matter
You can’t export under Georgia free trade agreements unless you show the correct origin and compliance documents. These are the key ones:
1. Certificate of Origin (COO)
This proves that your goods were produced or sufficiently processed in Georgia. You’ll need this for EU, China, CIS, Turkey, and others. It’s usually issued by the Revenue Service or Chamber of Commerce.
2. HS Code Classification
Every product you export needs to be classified under the Harmonized System codes. These codes determine if your goods fall under FTA terms or not.
3. Proof of Local Value Added
Many FTAs require that a certain percentage of the value of a product comes from Georgia. This can be met through local labor, materials, or manufacturing.
4. Export Invoice and Packing List
Must include the Georgian legal entity, correct business address, and all relevant product details.
5. Proof of Tax Compliance
Authorities often check if your Georgian business is in good standing with the Revenue Service. That’s why monthly filing matters, even if you think you’re under the tax threshold.
Virtual Zone, Tax Status, and Trade
Now let’s talk tax.
Even with full FTA access, the real benefits kick in when you combine trade access with Georgia’s tax incentives. For example:
If your company exports software or IT services, you can register for Virtual Zone status. This gives you 0% corporate tax on profits earned from foreign clients.
If you qualify as an International Company, you pay 5% on distributed profits instead of the standard 15%.
If you’re a solo entrepreneur, you can operate as an I.E. under 1% tax on turnover (up to 500,000 GEL per year).
So you could open a Georgian LLC, register for Virtual Zone, export IT services to the EU or China under FTA terms, and legally pay 0% corporate tax in Georgia.
No offshore entity needed. No double taxation. No tax dodging. Just smart structuring.
But again, this only works if the paperwork lines up. You need to:
Register the business for Virtual Zone through the Ministry of Finance
Use correct business classification during registration
Show income is from foreign sources
Keep monthly filings clean and audit-proof
Most founders don’t know how to navigate this. We’ve seen clients get rejected simply for using the wrong NACE code. Others lost Virtual Zone status because of poor bookkeeping. With Gegidze, those mistakes don’t happen.
Case Study: How a German Entrepreneur Used Georgia to Cut Costs and Expand
Let’s take a real-world scenario.
A German founder wants to sell modular eco-homes to clients across the EU. Manufacturing in Germany is too expensive. Exporting from China comes with heavy import duties.
He opens an LLC in Georgia with Gegidze’s help.
We register the company, set up local operations, source a Georgian assembly partner, and structure everything to meet EU origin requirements.
He invoices clients in France and Austria from his Georgian company. He uses a Georgian bank account at Bank of Georgia. He files through RS.ge and obtains COO documents for each export. He qualifies for DCFTA zero-tariff exports. He pays 0% tax on undistributed profits under the Estonian tax model.
The business scales within months, with a significantly lower cost base and full trade access to his target markets. His competitors are still dealing with customs delays and tax headaches.
That’s the power of combining Georgia free trade agreements with the right legal structure.
Why Real Estate Developers and Investors Should Pay Attention Too
Think free trade doesn’t affect the property market?
Think again.
Many real estate developers in Georgia are now importing materials from Turkey and exporting prefabricated housing units to Europe and Central Asia.
If you’re buying land in Georgia to build and sell, these agreements allow you to:
Import steel, glass, and fixtures without tariffs from partner countries
Export finished properties or units without triggering export duties
Work with clients in the EU or CIS without third-country licensing issues
Even if you’re not trading goods, these agreements help by stabilizing Georgia’s trade relationships. That keeps foreign investment high, demand for property rising, and confidence in the Georgian economy strong.
At Gegidze, we’ve seen investor visas fast-tracked for founders with export-ready business models and real estate portfolios designed to house business operations tied to trade activity.
So if you’re investing in land or apartments in Tbilisi, knowing how trade fuels business demand is not just helpful, it’s smart.
So, Is Georgia the Right Base for You?
Here’s the honest breakdown.
If you’re exporting physical goods, SaaS, consulting, or digital services, Georgia gives you one of the strongest packages in the world:
Free trade access to the EU, China, CIS, and UK
Low-cost, fast business registration
Full ownership for foreigners
Favorable tax regimes
No hidden licensing fees or annual residency requirements
Transparent banking through Bank of Georgia and TBC
Legal compliance and accounting that’s doable with expert help
But only if you structure it correctly.
That means registering the right type of company, tracking tax filings, securing the correct export documents, and working with a local team that knows how the system actually works.
This isn’t something you should try to figure out with Google Translate and guesswork.
Final Checklist: How to Start Using Georgia’s Trade Agreements Today
If you want to benefit from Georgia free trade agreements, here’s what you need to do:
Open a Georgian LLC or I.E.
Get Virtual Zone or International Company status if you qualify
Choose the right tax regime
Open a local business bank account
Structure operations for local value-added compliance
Obtain the correct documentation: COO, HS codes, invoices
Use a licensed accountant to stay compliant with RS.ge
Book a team that has done this before
That’s what we do at Gegidze.
We help foreign founders, solo entrepreneurs, tech teams, real estate developers, and manufacturers not just open companies, but structure them to trade, scale, and succeed.
Book a call. We’ll review your idea and tell you if it’s worth building from Georgia or what changes you need to make it work.
Frequently asked questions (FAQ)
What are Georgia’s free trade agreements and why do they matter for business?
Georgia has free trade agreements with the EU (DCFTA), China, CIS countries, the UK, EFTA, and Turkey. These deals eliminate or reduce import/export taxes, making Georgian-registered businesses more competitive in international markets.
Can I use Georgia’s free trade agreements if I don’t live there?
Yes. You don’t need to live in Georgia to use its FTAs. But your business must be legally registered in Georgia, operate through a Georgian bank account, and comply with local tax rules and origin documentation requirements.
Do digital and tech companies benefit from Georgia free trade agreements?
Absolutely. Tech companies offering services to clients in the EU or China can combine FTA access with Virtual Zone status to get 0% corporate tax, making Georgia especially attractive for SaaS, design, and IT service exports.
What documents are needed to benefit from Georgia’s FTAs?
You’ll need a Certificate of Origin, properly classified HS codes, a Georgian-issued invoice, proof of tax compliance, and in some cases, evidence of value added in Georgia. Mistakes here can disqualify you from tariff exemptions.
Can Gegidze help me structure my company to benefit from trade agreements?
Yes. Gegidze handles registration, Virtual Zone status, accounting, tax filing, document prep, and compliance, ensuring your setup qualifies for Georgia free trade agreements and avoids costly mistakes.
