Possibility to save up to 20-30% duty- With existing free trade agreements, products which are originated in Georgia, can have zero import tax to EU, Turkey and CIS countries for footwear and bags, which otherwise amount up to 17% for EU and Turkey and up to 30% for CIS countries.
Competitive costs
Labor cost-average salary in footwear manufacturing is USD 290 and in bags manufacturing – up to USD 450 (including taxes). — Low electricity cost –Electricity costs for industrial consumers range between USD 0.0598 to USD0.0858 per kWh
Low taxes
Free Industrial Zones- there are 4 free industrial zones in Georgia, which are exempt from all taxes, except personal income tax; — No social security tax-only tax payable on salaries is personal income tax-20% — Liberal taxation system-0% profit tax on reinvested profit;
Competitive costs
Labor cost-average salary in footwear manufacturing is USD 290 and in bags manufacturing – up to USD 450 (including taxes). — Low electricity cost –Electricity costs for industrial consumers range between USD 0.0598 to USD0.0858 per kWh.
Government incentives
Free land-Government of Georgia can transfer state owned property for manufacturing project for free of charge, with investment obligation. — Financial support mechanisms-Program “produce in Georgia” provides interest expense financing for loans received from local banks; State investment fund-JSC Partnership Fund can finance up to 49% of equity in investment projects. — Education-State owned vocational educational institutions provide courses in shoemaking and sewing
Source : Enterprise Georgia
