International Interest in Georgia’s Virtual Zone Status for IT Businesses

Georgia has seen a significant influx of interest from various countries regarding Virtual Zone status, especially for IT-related businesses. This interest is reflected in the diverse array of countries that have shown a propensity to register the companies in Georgia or relocate their businesses, seeking a favorable business environment.

Our latest analysis reveals diverse international interests with Virtual Status in Georgia, from different countries.

Here is the detailed breakdown:

1. Ukraine (20%): Leading the chart, Ukraine accounts for 20% of the interest with 312 companies. 

2. Russia (19%): Close behind, Russia represents 19% of the interest, amounting to 290 companies. 

3. Germany (12%): With 179 companies, Germany stands out as the most interested Western European country, making up 12% of the total interest. 

4. Belarus (5%): contributing 5% to the total interest, with 74 companies. 

The other countries:

• Israel (4%)

• Georgia (3%)

• UK (3%)

• Italy (2%)

• Latvia (2%)

• USA (2%)

• France (2%)

• Poland (1%)

• Australia (1%)

• Azerbaijan (1%)

• Denmark (1%)

• Sweden (1%)

• Other countries: collectively contributing 20% with 302 companies, demonstrating a broad spectrum of interest. 

Impact of Regional Factors

The significant number of applications from Ukraine, Russia, and Belarus can be largely attributed to ongoing geopolitical issues in the region. These circumstances have prompted many IT specialists to relocate to Georgia, seeking a stable and conducive environment for their operations. This influx has bolstered Georgia’s reputation as a growing IT hub in the region.

Conclusion

The diverse interest from multiple countries in Georgia’s Virtual Zone status underscores the country’s emerging role as an attractive destination for IT businesses and the importance of Virtual Zone status. The data indicates that while regional geopolitical issues have influenced the relocation of IT professionals, Georgia’s favorable business environment and strategic initiatives are the main drivers behind this international interest. This trend is likely to continue as Georgia strengthens its position as a key player in the global IT sector.

Also, we have already shared information regarding the financial contribution of VZP companies to the Georgian budget. Please refer to the full report available at the provided link.