Who can apply for virtual zone status?

Various types of companies operating in the IT sector may apply for the status of a virtual zone in Georgia. These include companies engaged in software development, IT consulting, internet marketing, e-commerce, crypto technologies and other IT-related services. In particular, the status may be of interest to companies engaged in research, support, development, design, production and implementation of computer and information systems. Examples of such companies may include mobile application and game developers, companies specializing in web development and software creation, as well as providers of cloud and hosting IT solutions.

However, despite the wide range of potentially eligible companies, there is a key condition for obtaining the status of a virtual zone and using its tax advantages: the company must be focused on foreign clients. This means that the company's revenue must come from providing services or selling products to clients who are not residents of Georgia and are located outside of it. If a company plans to conduct business within Georgia and receive revenue from local customers, the standard Georgian tax system will apply to that revenue, and the virtual zone status itself may not be practical or even available. Thus, the virtual zone is primarily designed to support the export of IT services and attract foreign exchange earnings to the country.

There is a tendency for preference in granting virtual zone status to be given to companies with a strong component in the field of software development. While areas such as IT consulting, internet marketing, e-commerce and crypto technologies may have previously qualified, to obtain the status it is now often necessary to demonstrate that the main activity is the development and sale or licensing of software. This suggests that when applying, companies should clearly describe their activities and highlight any aspects related to the creation of software products.