Georgia in Numbers - Complete Statistical Overview

Understanding Georgia through comprehensive data, statistics, and key indicators provides valuable insights for entrepreneurs and investors making informed decisions about the country as a business destination or place to live.

Economic Overview and Key Indicators

Georgia's economy has undergone remarkable transformation since the early 2000s, evolving from a struggling post-Soviet state into a dynamic, market-oriented economy with consistent growth. The country's population stands at approximately 3.7 million, creating a small domestic market but offering advantages in terms of agility and ease of implementing reforms.

The nominal GDP reached $24.6 billion in 2023, with GDP per capita at approximately $6,650. While these absolute figures place Georgia as a lower-middle-income country by World Bank classifications, the trajectory is consistently upward. More importantly for entrepreneurs and investors, GDP growth has averaged 4-7% annually over the past decade, significantly outpacing most developed economies.

The Georgian Lari (GEL) serves as the national currency, with the exchange rate hovering around 2.6-2.8 GEL to 1 USD in recent years. The currency has demonstrated relative stability, particularly impressive given regional geopolitical challenges and global economic volatility. The National Bank of Georgia maintains a floating exchange rate policy with occasional interventions to prevent excessive volatility.

Inflation has been managed relatively well, averaging 2-4% annually in normal years, though like many countries, Georgia experienced higher inflation in 2021-2023 due to global factors. The National Bank's inflation target is 3%, and monetary policy has generally been effective at maintaining price stability. For businesses and individuals, this means reasonable predictability in purchasing power and cost planning.

Business Environment Rankings

Georgia's performance in international business rankings demonstrates its transformation into one of the world's most business-friendly environments. In the World Bank's Doing Business rankings (prior to the report being discontinued), Georgia consistently ranked in the top 10 globally, ahead of countries like Japan, Switzerland, South Korea, and Germany. This wasn't luck or accounting tricks – it reflected genuine reforms that made starting and operating a business easier.

Breaking down specific metrics: Starting a business requires only 2 procedures and typically takes 1-2 days. The cost is minimal – approximately $37 (100 GEL) for basic registration. There's zero minimum capital requirement, allowing businesses to start with whatever funding they have available. Compare this to countries requiring weeks of procedures, notarized documents, and minimum capital deposits of thousands of dollars.

Property registration, crucial for real estate investors, is remarkably efficient. Registering property transfer takes just 1 day and costs 0.5% of the property value. The system is fully digitized, with property rights clearly established and easily searchable. This contrasts sharply with countries where property registration can take weeks or months and involve significant legal uncertainty.

Contract enforcement takes approximately 285 days through the court system, which while not lightning-fast, is reasonable and compares favorably to many developed countries where court processes can drag on for years. The quality of judicial processes has improved significantly, with courts generally impartial and respecting property rights and contracts.

In the Heritage Foundation's Index of Economic Freedom, Georgia consistently scores in the "mostly free" category, ranking among the top 20 globally. The country scores particularly high in business freedom, trade freedom, and freedom from corruption. These aren't abstract measures – they translate directly to entrepreneurial opportunity and ease of operation.

Tax Rates and Structure

Understanding Georgia's tax structure through specific numbers reveals why it's so attractive to entrepreneurs and businesses. The Individual Entrepreneur (IE) system charges exactly 1% of gross turnover for businesses with annual revenue under 500,000 GEL (approximately $185,000 USD). To be absolutely clear: if your business earns $100,000 in revenue in a year, you pay $1,000 in tax. If you earn $150,000, you pay $1,500. The calculation is simply revenue × 0.01 = tax owed.

This 1% rate is not an introductory offer or temporary incentive – it's the standard rate that has been stable for years. There's no graduated scale, no complicated deductions to calculate, no distinction between different types of income. Whether you're a freelance consultant earning $50,000 or an e-commerce operator earning $180,000, you pay 1% of that amount in tax. The simplicity cannot be overstated.

For businesses structured as LLCs (limited liability companies), corporate income tax is 15% – but crucially, it's only levied on distributed profits. If your company earns 1 million GEL in profit and reinvests all of it in the business, you pay zero corporate tax that year. If you distribute 300,000 GEL to shareholders, you pay 15% on that 300,000 GEL (45,000 GEL), but the remaining 700,000 GEL stays in the company tax-free.

Personal income tax on employment and certain other income is 20% flat rate. This applies to salaries, certain business income above the IE threshold, and other Georgian-source income. However, the territorial taxation principle means foreign-source income often escapes Georgian taxation entirely. Capital gains – from selling securities, real estate (after holding periods), or properly structured cryptocurrency – face 0% tax. Inheritance and gifts also face 0% tax.

VAT (Value Added Tax) stands at 18% standard rate, which is relatively moderate compared to many European countries with rates of 20-25%. However, many services (especially exports of services) are zero-rated or exempt. Small businesses under the IE system are not required to register for VAT, significantly simplifying their operations.

Social security contributions – a major cost for employers in most countries – are minimal in Georgia. Employers pay 0% or 2% pension contribution depending on the employee's birth year and election. That's it. No unemployment insurance, no health insurance mandate, no disability insurance, no workers' compensation requirements. An employee earning 3,000 GEL monthly might cost the employer 3,000-3,060 GEL total, not 4,000-5,000 GEL as in high social contribution countries.

Cost of Living Statistics

Concrete cost of living data demonstrates why Georgia offers such excellent value. Rent for a modern, well-located 50 square meter (540 sq ft) apartment in Tbilisi's desirable neighborhoods like Vake, Saburtalo, or Vera typically ranges from 1,200-2,500 GEL monthly ($440-920 USD). For comparison, equivalent apartments in London, Berlin, or San Francisco would cost $2,000-4,000+ monthly.

Grocery costs for a single person eating reasonably well average 600-1,000 GEL ($220-370) monthly. This includes fresh produce from markets, meat, dairy, and pantry staples. Eating entirely imported Western brands would increase costs, but most people find local and regional products of good quality. A liter of milk costs 2-3 GEL ($0.75-1.10), a dozen eggs 4-6 GEL ($1.50-2.20), bread 1-2 GEL ($0.37-0.75).

Restaurant meals provide excellent value. A substantial meal at a casual Georgian restaurant costs 15-30 GEL ($5.50-11), including appetizer, main course, and drink. Mid-range restaurants charge 30-60 GEL ($11-22) per person for a full meal. Fine dining experiences cost 80-150 GEL ($30-55), still a fraction of equivalent restaurants in Western capitals. A cup of good coffee ranges from 4-8 GEL ($1.50-3.00).

Transportation costs are minimal. The Tbilisi metro costs 1 GEL ($0.37) per ride regardless of distance. Buses and marshrutkas (minibuses) cost similar amounts. A monthly unlimited transport pass costs 20 GEL ($7.40). Taxis via apps like Bolt typically charge 5-15 GEL ($1.85-5.50) for cross-city journeys. Gasoline costs approximately 3 GEL per liter ($1.10/liter or $4.15/gallon).

Utility costs for a small apartment typically total 150-300 GEL ($55-110) monthly including electricity, water, gas, and internet. This varies by season (higher in winter for heating) and usage patterns. High-speed fiber internet alone costs 30-80 GEL ($11-30) monthly for 100-300 Mbps connections. Mobile phone plans with adequate data cost 15-40 GEL ($5.50-15) monthly.

Real Estate Market Numbers

Real estate prices in Tbilisi vary significantly by neighborhood and property condition. In prime central locations like Vake or Vera, modern apartments sell for 3,500-6,500 GEL per square meter ($1,300-2,400/sqm). Good quality apartments in popular residential areas like Saburtalo sell for 2,500-4,000 GEL/sqm ($925-1,480/sqm). More affordable neighborhoods like Gldani or Dighet offer older apartments for 1,500-2,500 GEL/sqm ($555-925/sqm).

In Batumi, Black Sea resort city, prices reflect the tourism market. Beachfront apartments in new developments sell for 2,000-4,000 GEL/sqm ($740-1,480/sqm). Properties with sea views but not directly on the beach cost 1,500-3,000 GEL/sqm ($555-1,110/sqm). Inland properties can be found for 1,200-2,000 GEL/sqm ($445-740/sqm).

Rental yields vary by location and property type. Long-term rental yields in Tbilisi typically range from 4-7% annually on purchase price. Short-term vacation rentals in good locations can achieve 8-12% gross yields, though this requires more active management. In Batumi, short-term tourist rentals can achieve 10-15% yields during good years, but seasonality affects annual returns significantly.

Transaction costs when purchasing property include a 0.5% registration fee paid to the Public Registry plus legal fees if using a lawyer (typically $500-1,500). There's no purchase tax or stamp duty. Ongoing costs are minimal – property tax ranges from effectively zero on apartments to small amounts on commercial property. No annual wealth tax exists on property holdings.

Employment and Salary Statistics

Employment costs in Georgia create significant advantages for businesses needing staff. Salaries vary widely by sector, position, and employee skills, but general ranges provide useful guidance. Entry-level positions for basic office work, customer service, or junior roles pay 800-1,500 GEL monthly ($300-550 USD). These are positions requiring minimal experience or specialized skills.

Mid-level professionals with several years of experience, specific skills, or supervisory responsibilities earn 2,000-4,000 GEL monthly ($740-1,480 USD). This includes experienced accountants, mid-level developers, marketing managers, sales professionals, and similar roles. These salaries provide comfortable middle-class life in Georgia while costing far less than equivalent hires in Western markets.

Senior professionals, managers, and specialists with valuable expertise command 4,000-8,000 GEL monthly ($1,480-2,960 USD). This includes senior developers, company directors, specialized consultants, and high-performing sales staff. At the top end, exceptionally skilled individuals in fields like software development or senior management can earn 10,000-15,000 GEL ($3,700-5,550) or more, but these remain well below Western salary levels for equivalent positions.

The unemployment rate hovers around 18-20%, which sounds high by Western standards but reflects both legitimate unemployment and informal economy participation. For employers, this means generally good availability of workers, though finding highly skilled professionals in specialized fields can be competitive. The labor force participation rate is approximately 50%, with significant gender disparity and regional variation.

Tourism and Visitor Statistics

Tourism has become a major economic driver, with Georgia welcoming over 9 million international visitors in peak years (pre-pandemic and recovering post-pandemic). This is remarkable for a country of 3.7 million residents – tourism arrivals exceed the entire population more than twice over. The majority of visitors come from neighboring countries (Azerbaijan, Armenia, Turkey), Russia (despite political tensions), and increasingly from Europe and beyond.

Tourism directly contributes approximately 7-8% of GDP, with indirect effects bringing total tourism-related economic activity much higher. The sector employed over 200,000 people directly in peak years. For investors and entrepreneurs, this creates opportunities in hospitality, tourism services, real estate (especially short-term rentals), and related sectors.

The number of visa-free nationalities stands at 90+, making Georgia one of the world's most open countries for tourism. Citizens of the EU, USA, Canada, UK, Australia, and many other countries can enter without visas for periods ranging from 90 days to one full year depending on nationality. Additionally, holders of Schengen, US, UK, or Canadian visas can enter visa-free even if their nationality would normally require a visa.

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