GeorgiaCapital: Tbilisi
Total Area:
69,700 km²
GDP (in million USD):

Georgia is in the eastern coast of the Black Sea bordered on the north by Russia and on the south by Turkey, Armenia, and Azerbaijan.

Progress on market reforms and democratization has been made, but progress has been complicated by civil conflicts in the breakaway regions of Abkhazia and South Ossetia, which remain outside the control of the central government and are ruled by de facto, unrecognized governments, supported by Russia.

Non-residents earning rental income are taxed at a flat rate of 20%. Capital gains realized from sales of properties not connected with business activities are exempt from taxation if the property was held for more than two years before it was sold. First and second degree relatives are fully exempt from inheritance taxes. Residents are taxed on their Georgian-sourced income at a flat rate of 20%. The income tax rate will be reduced to 18% in 2013 and further reduced to 15% on 2014.



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