Free Industrial Zones (FIZs) are special geographical areas in Georgia where businesses can benefit from preferential treatment and highly attractive regulatory incentives. Companies registered in these zones receive significant tax advantages, provided that they meet the qualifying criteria. However, since the creation of the special FIZ regime in 2007, there has been a lot of debate in the market about who can actually benefit from the status and what activities are permitted under it.
In this article, we will review the regulatory framework for FIZ enterprises (tax incentives and legal requirements). We will also address common misconceptions that have caused confusion among misinformed investors and taxpayers for over a decade.
A General Definition and Existing FIZs
A Free Industrial Zone is a designated area where businesses enjoy a 0% tax rate on certain activities, encouraging investment and economic growth. Georgia currently has several FIZs that attract both local and international companies by offering these benefits under specific conditions.