Mundo's freedom rating is essentially a freedom index whereby our team of specialists rates a combination of freedoms which include freedom from violence and personal attacks, financial freedom from high taxes and other government levies, business freedom from government interference and investment potential.

Political Stability: 6

Shortly before the collapse of the Soviet Union in April 1991, Georgia declared its independence in March 1991. Soon, civil war broke out in the country. Due to its placement at the crossroads between Asia and Europe, Georgia has always served as the battleground for many conflicts. Soon after its independence, civil war broke out in the country. Through the years, Georgia has had a conflicting political status.

Before 2009, Georgia was struggling: several military conflicts, government takeovers, civil wars, and economic crises. After years of hostility and war with Russia, Georgia attained peace in 2008 after France proposed a ceasefire. It was extremely corrupt and destroyed after the breakup with the Soviet Union; they did not even possess some decent infrastructure and were wrecked on all bases.

Through all these struggles, Georgia is still rising on the economic front. In the 2017-2018 financial year, 10,000 new legal entities were registered in Georgia and over 10 billion US dollars were invested in the areas of the economy such as energy production, processing industry, and financial sector.

In 2018, the country’s first female President, Salome Zourabichvili was elected. The current Prime Minister Irakli Garibashvili took up the position after the former Prime Minister Giorgi Gakharia resigned unexpectedly in February 2021. In February, the police raided the United National Movement’s headquarters, the opposition in Georgia. The chairman of the party Nika Melia was arrested, and this has again thrown the country into a deep political crisis. This incident has raised questions about the authenticity of the democracy in the country.

Taking the economic growth and the climbing political tension into consideration, we rate the political stability 6.

Personal Safety: 9

Georgia might be the land of conflicts, but generally, it is a safe nation. The International Crime Index rated Georgia as the 7th safest country in the world in 2017. There are some parts of the country that are not safe to visit due to the constant conflict and terrorist attacks. These are South Ossetia and Abkhazia, bordering Russia.

Like any other country, petty thievery also takes place in Georgia. But the rate is comparatively less. Avoid wearing flashy jewelry and bringing large sums of money with you in the public. Most of these thefts occur in highly populated public transportations and crowded tourist spots. Keep your guard up, and you can avoid being the victim of these thefts.

Often, there are protests and demonstrations taking place on the streets of Tbilisi, the capital city. These are usually peaceful and cause not much trouble other than interrupting the traffic. However, due to the recent political tensions, you could face some violent protests.

In 1937 the Department of Public Safety was created in Georgia as its citizens complained about increased traffic fatalities, crime, and a need for a larger law enforcement agency with statewide arrest powers. Georgia lawmakers decided to create the State Patrol. So, today Georgia State Patrol (GSP) supports the efforts of all public safety agencies to reduce criminal activity, apprehend those involved, reduce the crime level in the country and ensure a maximum protection to its citizens. 

As for international work on the citizens’ safety, it should be noted that Georgia cooperates closely with the United States to promote mutual security, counterterrorism interests and provides Georgia with bilateral security assistance, including English-language and military professional training, through the International Military Education and Training program.

Considering all these factors, we give a score of 9.

Ask for more information

Lifestyle: 9

The culture and heritage of Georgia run deep and are very lush. Georgia is relatively welcoming and hospitable - the people are cordial, and it is easy to apply and become a citizen of Georgia. Still anonymous for a lot of people, Georgia is filled with gorgeous countryside and stunning medieval architecture. The capital Tbilisi is the tourists’ favorite - with its local markets and cozy shops, the city serves as the heartbeat of the country.

Life in Georgia is very much affordable if you know how to master your choices. It’s the perfect destination for low-budget travelers and tourists - with its low-cost motels and modest hotels, Georgia is pocket-friendly. Whether it is street foods or high-end restaurants, their cuisine is absolutely delicious and unique. The cuisine has its Persian and Caucasus influences. From countryside markets to luxurious hotels, there is a wide array of places in Georgia. 

If you are visiting the country as a traveler, you’ll find that the locals are very cordial and friendly. Chances are high that you end up dining with one of the local families on a weekday for family dinner. But, do not expect the same treatment when you move in for good. This doesn’t mean that the people will be harsh; they will still be cordial and hospitable but do not expect them to treat you like some special guest.

The currency of Georgia is the Georgian lari which equals 0.32 USD. The average salary of the people in Georgia is estimated to be approximately 500 USD. This is good proof that Georgia is affordable for both tourists and those who live there. Just like in any other country, it will be tough to find an apartment when one is new in the country. The prices will vary according to the size of the apartment and the place in which you wish to live. But the apartment prices are high if you wish to buy one.

Not everyone in Georgia speaks English. They have their own language - written in Georgian Script and spoken only by Georgians. It is a comparatively tough language to grab as it doesn’t resemble any other language in the world, but with good practice, you can learn it. People who are visiting are advised to know some well-used phrases and words so that they don’t feel lost.

The country is a bit quaint; with its narrow streets and green valleys, it is panoramic. The country is small, so is the population. Housing nearly 4 million people, Georgia never gets crowded despite its narrow streets. Studying its cultural richness and hospitality, we rate the lifestyle of the country a 9.

Taxation: 9

As per the list issued by the World Bank Group, Georgia ranks as the 3rd Least Tax Burdened Country in the world, with a 9.9% Total Tax Rate. The Tax Code and the Customs Code are combined into one declaration by the Government of Georgia, and this shows the potential of the country. There are six flat tax rates in Georgia; and for Free Industrial Zones (FIZs), only one tax is applicable - the payroll tax. Taxes are collected on both local and state levels in Georgia. Some taxes are tabulated at the federal levels, and they are very significant: income tax, value-added tax, and corporate taxes. 

In Georgia, corporate taxes are charged at a flat rate of 15%. If a company’s management is located in Georgia, then they are taxable. No corporate income tax is imposed on retained and reinvested profit. In 2017, the Government of Georgia exempted non-distributed profits from paying corporate taxes. Another important point to notice is that there are no special taxes on capital gains in Georgia. Georgian companies that manufacture goods especially to be shipped can go for a special license.

Special mention must be made on FIZs and VZs. Four Free Industrial Zones (FIZs) have been established in three cities to make the most out of the country’s potential logistics. As mentioned earlier, Companies that have licensed with Georgia can practice trade with Asia and Europe without having to pay the custom duties. Virtual Zones (VZs) are advantageous tax regimes for IT companies with conventional forms of ownership. If companies are registered with the VZ, then they will be excused from taxes when they sell their IT products and services abroad.

Foreign companies who operate there are levied with taxes based on their earnings sourced from the Georgian sources. But to avoid double taxation, Georgia has finalized treaties regarding taxation with 52 countries. The excise duties are imposed on only certain selected goods in Georgia: goods like alcohol, automobiles, communication services and a few others.

When it comes to individual taxes, the people of Georgia are levied with a flat 20% income tax. A person is viewed to be an inhabitant of the country if they live there for a minimum of 183 days per year. Georgians have to pay taxes for their worldwide income, and the foreigners who are residing in Georgia have to pay taxes for the income they obtain from Georgian sources.

Low tax rates are one of the most attractive standpoints of Georgia, thus drawing in more investors. For this, we rate the country in this category with a 9.

Investment Potential: 10

To attract more foreign investors, the Government of Georgia has made several reforms through the years, alongside the numerous laws that have been passed. All these combined with the high tax incentives make it a great country in which you can begin your business. The geographic location of Georgia is also a big plus - situated in the Caucasus region, on the roads connecting Europe and Asia.

Georgia has many commercial advantages:

-A steady political environment, 

-Well-established infrastructure, 

-A great tax policy 

-A low-cost manpower 

All these qualities make it a haven for potential investors. It is also notable that the security of foreign investments in Georgia is guaranteed by the Government. The Government of Georgia has inked bilateral investment pacts with 32 countries to improve the economic conditions of the country. Due to these benefits, the country has seen millions of dollars of investments, just in recent years.

There has been all-around growth in many sectors in which foreign companies invest. The banking sector is booming, the travel industry has seen a great inflow of tourists, and so on. As for recent data, 10% of the nation’s whole GDP comprises foreign investments. The sectors in which foreign investors concentrate more are these: the transport, communication, construction, and finance sectors.

The FIZs and VZs very much attract investors and traders as they are low-tax zones. Many IT entrepreneurs are choosing Georgia as their platform to develop their companies, as energy sources are readily available in Georgia. If you are looking forward to developing a company in a foreign land, Georgia is very much a promising country to consider. This is because of the country’s opportune tax regime. 

By taking all these factors into account, we rate the investment potential factor a 10.

So, overall Mundo’s country rating for Georgia: 43/50.

Contact us