For investors

Incentives


Investment prospects of the Republic of Abkhazia:


A lot of work has been done in improving of Abkhazia’s investment sphere.

A newly developed law “On investment Activities” from May 1, 2014 №3510-c-V was adopted in the Republic of Abkhazia in 2014. The law provides additional mechanisms, conditions and preferences for investors such as:

Tax benefits of capital investments are given during the payback period (not more than 8 years):

1. Investments from 10 to 70 million rubles
    - Income tax rate reduces by 50 %
    - Property tax rate reduces by 50%

2. Investments of more than 70 million rubles
    - Income tax rate – 0%
    - Property tax rate – 0%

Tax benefits for investments in the financial sphere are given during the payback period (not more than 8 years):

1. Investments from 200 to 500 million rubles
    - income tax rate reduces by 50 %
    - Property tax rate reduces by 50%

2. Investments of more than 500 million rubles
    - Income tax rate – 0%
    - Property tax rate – 0%


Tax benefits for investments in the innovation sphere are given during the payback period (not more than 8 years):

1. Investments from 3 to 30 million rubles
    - income tax rate reduces by 50 %
    - Property tax rate reduces by 50%

2.  Investments of more than 30 million rubles
    - Income tax rate – 0%
    - Property tax rate – 0%



An Agreement on the Goods Trade between the Republic of Abkhazia and the Russian Federation.

The Agreement on the Goods Trade between the Republic of Abkhazia and the Russian Federation was signed in Moscow on May 28, 2012. The Agreement came into force on January 1, 2015.

According to the Agreement, no custom duties applied to all goods that produces on the territory of Abkhazia and sold to Russia and vise versa. The export of sugar, alcohol and cigarettes to Russia from Abkhazia do not fall within the regime as well as the import of tea, water, alcohol and cigarettes to Abkhazia from Russia.

Moreover, the Agreement provides import of oil products from Russia to Abkhazia without import duties in the framework of quotas, which discusses by sides annually and based on the annual domestic consumption of Russian oil products in Abkhazia.



Law on Special Economic Zones

Adopted on October 9, 2015.

Special economic zones are created for stimulation of economic growth of the Republic of Abkhazia and improving of social well-being of population by providing the more advantageous conditions for investments in transport (maritime, railroad, automotive and aviation), infrastructure, tourism, international trade and the introduction of high-tech industries.

There are 5 types of special economic zones:

  1. Industrial

  2. Technology development

  3. Tourism and recreation

  4. Ports

  5. Mixed

The residents of special economic zone are exempt from all types of taxes and other tax payments concerning their income from business in special economic zone on the half time of the period of an agreement (the exceptions are income tax on wages and compulsory contribution and payments to state extra-budgetary funds of Abkhazia).

There is a duty-free zone regime in special economic zones.