Tourist zone entrepreneur

A tourist zone entrepreneur is a person who, based on the certificate of status granted by the Georgian fiscal authorities, builds a hotel and ensures its operation according to the Law of Georgia on Promotion of the Development of Free Tourist Zones.

• Income of a tourist zone entrepreneur derived from rendering hotel services is exempted from corporate income tax until 1 January 2026.
• The value of land plot(s) supplied gratuitously to a tourist zone entrepreneur is exempted from corporate income tax.
• The property of a tourist zone entrepreneur related to hotel services is exempted from property tax until 1 January 2026.

Tourist Enterprise

A tourist enterprise is a legal entity that, based on the certificate of status granted by the Georgian fiscal authorities, builds a hotel for the purpose of supplying the hotel assets or part thereof to another person and then leasing them back. A legal entity may apply for the status for each hotel before the operation if the following conditions hold:

• Ensures the object operates as a hotel business for the first 10 years of exploitation.
• More than 30% of the building space is used for hotel rooms.
• Income received from hotel business during the first 10 years of operation should not be less than the income received from supplying the building to another person.

TAX BENEFITS ARE RELATED TO THE TOURIST ENTERPRISE:

• Income received from the supply of hotel services to the owner of the hotel gratuitously for up to 60 days during a calendar year is exempted from corporate income tax.
• Further, any benefit received by the owner of the hotel by receiving hotel service gratuitously is exempted from personal income tax.
• The supply of hotel assets or part thereof with the purpose to receive them back under leasing is exempted from VAT with credit.
• The supply of hotel assets or part thereof leased back within two years of the supply is exempted from VAT with credit; the entity is entitled to file a corrected VAT return.

THE STATUS OF TOURIST ENTERPRISE IS CANCELLED IF:

• The terms of the allowable activities are violated.
• The obligations are fulfilled and the tourist enterprise applies to the GTA for cancelation of this status Upon cancelation of the status of tourist enterprise, the difference between the amount of compensation for the supply of hotel assets or part thereof and the amount taxable resulting from operation of the hotel should be taxed with VAT.

What is included in the package

• Preparation of Documents & Registration in 24 Hours.
• Printed Certificate of Incorporation.
• Registered Office Address for 1 Year.
• Opening of Multi Currency Bank Account.
• Obtaining Tourism Zone License.
• Mandatory Tax Registration in Revenue Service Department.