Innovative startups in Georgia are set to benefit from substantial tax incentives aimed at fostering technological advancement and economic growth. Prime Minister Irakli Kobakhidze announced during a recent government meeting that startups developing high-tech and innovative products will receive a unique 10-year tax incentive. “Startups developing high-tech and innovative products will enjoy a unique 10-year tax incentive,” Kobakhidze stated. “For the first three years, they will pay 0% income tax, allowing them to reinvest their earnings and accelerate growth.”
This initiative, first introduced on March 19, 2024, during the 10th anniversary event of the Georgian Innovation and Technology Agency (GITA), underscores the government’s commitment to transforming Georgia into a regional innovation hub. The policy aims to stimulate the creation of new startups, attract global innovators, increase investment, generate jobs, and provide robust tax support mechanisms for small and medium-sized enterprises engaged in innovation. “This policy will not only encourage the creation of new startups, but also attract global innovators, increase investment, generate jobs, and provide strong tax support mechanisms for small and medium-sized enterprises engaged in innovation,” Kobakhidze pointed out.
Startups developing high-tech and innovative products will, for the first three years, pay 0% income tax, allowing them to reinvest their earnings and accelerate growth
In addition to the initial three-year exemption, the 10-year tax incentive includes additional benefits such as 500% tax credits and 30% cashback for innovative startups and SMEs. These measures are designed to further reduce financial barriers and encourage sustained investment in technological development. Moreover, Georgia offers a range of other tax credits to support business growth and innovation, including the Georgia Retraining Tax Credit, Job Tax Credits, Investment Tax Credits, and Research and Development Tax Credits. These programs aim to attract businesses by promoting workforce development, job creation, and investments in property and equipment.
Collectively, these initiatives position Georgia as an attractive destination for startups and established businesses alike, fostering a dynamic environment for innovation and economic development.
By Mariam Razmadze
