The Association’s Perspective on IT Sector Growth and the Role of the Virtual Zone

Following the publication of updated IT sector revenue statistics, BM.GE invited Shorena Kopaleishvili, Chairperson of the Association of Georgian Virtual Zone Persons, to provide expert commentary on the sector’s growth — including the contribution of Virtual Zone resident companies.

Statement from the Association of Georgian Virtual Zone Persons

Recent data from the National Bank of Georgia and Geostat confirm a strong recovery in Georgia’s IT sector following a decline in 2024.

In the first quarter of 2025 alone, external revenues from the sector reached USD 266 million — a 70% increase compared to the same period in 2024 (an additional USD 110 million).

For context:

– In 2023, the sector reached a record USD 784 million.

– In 2024, this dropped to USD 688 million.

– However, 2025 is already showing signs of surpassing previous records.

As noted by Geostat, the IT sector has emerged as one of the main drivers of Georgia’s economic growth this year.

Companies with Virtual Zone status continue to make a significant contribution to this trajectory. Tax revenue data confirms a consistent upward trend in their economic impact:

For comparison:

– In 2019, VZP companies paid GEL 46 million in taxes

– In 2020 — GEL 43.8 million

– In 2021 — GEL 67.3 million

– In 2022 — GEL 74 million

– In 2023 — GEL 88.7 million

– In 2024 — over GEL 85.4 million

– And in the first quarter of 2025 alone — GEL 29.2 million, including:

• VAT — GEL 17.0 million

• Income Tax — GEL 10.4 million

• Profit Tax — GEL 4.0 million

In total, between на and early 2025, Virtual Zone companies have contributed over GEL 200 million to the state budget.

This underscores the resilience and growing strategic importance of the Virtual Zone as a pillar of the IT sector.

These figures are not only a sign of post-pandemic recovery but also a clear call for continued institutional support for the industry, including:

– Legal clarity

– Preservation of competitive tax incentives

– Official recognition of the IT sector’s strategic role in Georgia’s economy

The Association of Georgian Virtual Zone Persons remains committed to advocating for its members and supporting the sustainable development of the IT sector — through engagement with policymakers, legislative initiatives, and international promotion of Georgia as an IT hub.