Georgia and the European Union: Toward Accelerated Integration

Since the association agreement signed in 2014 and the granting of official EU candidate status in December 2023, Georgia has embarked on a process of deep regulatory alignment with European standards. For foreign businesses, this opens significant prospects.

The Association Agreement and DCFTA

The Deep and Comprehensive Free Trade Agreement (DCFTA) between Georgia and the EU entered into force in 2016. It provides for:

• The progressive elimination of customs duties on virtually all goods trade

• The progressive alignment of the Georgian regulatory framework with the EU acquis in key areas (sanitary and phytosanitary standards, intellectual property rights, competition, etc.)

• The free movement of services and capital within a regulated framework

This DCFTA gives companies established in Georgia privileged access to the European market — particularly for goods compliant with EU standards.

Alignment with EU Standards: Concrete Progress

• VAT: full alignment with Directive 2006/112/EC since 2021

• Trade: integration into the EU's New Computerised Transit System (NCTS) in 2025, facilitating electronic customs declarations and reducing clearance times

• Accounting: adoption of IAS/IFRS as the national framework

• Financial markets: progressive adoption of governance and transparency standards inspired by European law

Schengen Visa Exemption

Since 28 March 2017, Georgian nationals holding a biometric passport can travel in the Schengen area for up to 90 days in any 180-day period without a visa. This exemption facilitates business exchanges between Georgia and EU countries.

Benefits for Foreign Businesses

For investors, Georgia offers several specific advantages:

• Export platform to the EU and Asia: companies producing in Georgia can benefit from both the DCFTA with the EU and FTAs with China, Turkey, and CIS countries.

• Competitive operating costs: skilled workforce at costs 30–40% lower than Central Europe, lower rents and real estate than in Western Europe.

• Advantageous taxation: CIT rates among the lowest in Europe, no tax on reinvested profits.

• Macroeconomic stability: public debt below 35% of GDP, controlled deficit, foreign exchange reserves at record levels.

• French presence: the CCIFG supports its members in all their establishment, networking, and representation procedures.