Virtual Zone Georgia 2026: Current Data and Sector Outlook

As of March 1, 2026, the number of companies operating under Virtual Zone Person (VZP) status in Georgia continues to grow steadily.

According to official data from the Financial Analytical Service:

• 1356 legal entities have already been granted VZP status

• 372 companies are currently under a suspended VZP status application process.

• 25 applications are under active review

• Only 4 companies received a rejection, while 101 had their status revoked.

These figures confirm the high and stable interest of businesses in Georgia’s Virtual Zone model and strengthen the country’s position as an attractive jurisdiction for international IT companies.

Strong Growth of Virtual Zone — Stability and Maturity of the Sector

The continued expansion of the Virtual Zone ecosystem reflects not only growing interest, but also the increasing maturity and resilience of the sector.

Despite the evolving regulatory environment and ongoing updates, the Virtual Zone framework in Georgia continues to demonstrate stability and adaptability, enabling companies to operate efficiently and plan long-term.

As a result, Virtual Zone companies continue to scale, maintain stable operations, and strengthen their presence in international markets — reinforcing Georgia’s position as a reliable and competitive IT jurisdiction.

The continued growth of the Virtual Zone ecosystem is not accidental — it is the result of an evolving regulatory framework and the active role of professional institutions supporting the sector.

The Association of Georgian Virtual Zone Persons plays a key role in maintaining this positive dynamic by ensuring structured representation of VZP companies and contributing to a clear and predictable business environment.

The Association closely monitors regulatory developments, analyzes their practical impact on companies, and conveys the consolidated position of the sector to government authorities. As demonstrated in practice, this approach has already contributed to important clarifications and the cancellation or reduction of fines amounting to hundreds of thousands of GEL.

At the same time, the growing popularity of the Virtual Zone model is driven by the unique advantages it offers to IT companies.

Companies operating in the IT sector can benefit from:

• 0% corporate tax on distributed profits (instead of 15%, subject to applicable double taxation agreements)

• 0% VAT (instead of 18%)

• Simplified registration requirements, including no need for additional licensing for IT activities

• Free status acquisition

It is important to note that these tax benefits apply to income generated from IT services provided to clients located outside of Georgia.

Companies — members of the Association gain not only representation of their interests at the sector level, but also practical advantages: expert support, access to relevant information, and more effective navigation of regulatory, tax, and operational matters.

If your company operates or plans to operate in the IT sector, the Virtual Zone framework — supported by the Association — provides a strong foundation for growth, stability, and international expansion.

Want to stay informed and strongly positioned within the sector?

Join the Association of Georgian Virtual Zone Persons

For questions: info@viz.ge

— Association of Georgian Virtual Zone Persons