​In April 2024, the Georgian Parliament enacted significant amendments to the Tax Code, commonly referred to as the “Offshore Law.” This legislation introduces substantial tax incentives for companies and individuals transferring assets from offshore jurisdictions to Georgia.

Key Provisions of the Offshore Law:

1. Tax Exemptions on Income: Income generated from the transfer of assets by offshore-registered companies and their owners to Georgian enterprises is exempt from profit and personal income taxes.
2. Import Duty Waivers: Assets and goods brought into Georgia as part of this transfer are exempt from import duties.
3. Property Tax Relief: Georgian enterprises receiving these assets are exempt from property tax on the transferred assets until January 1, 2030.

These incentives are applicable to transfers completed by January 1, 2028, provided that the same individual or entity holds full ownership of the assets both offshore and after their transfer to Georgia.

Criticisms and Concerns:

The law has faced criticism from opposition parties, economic analysts, and international observers. The primary concerns include:​

• Risk of Money Laundering: Critics argue that the law could facilitate the influx of illicit funds into Georgia, potentially turning the country into a hub for money laundering activities. ​
• Lack of Transparency: The expedited legislative process and the broad nature of the tax exemptions have raised questions about the transparency and intent behind the law. ​
• Potential for Sanctions: There is concern that by easing the movement of offshore assets into Georgia, especially from individuals facing international sanctions, the country might attract negative attention from global financial regulators.