Key benefits available to investors in Belarus

Geostrategic location
Belarus has the advantage of being in the right geostrategic location. On the one side there are CIS countries and on the other side are countries of the EU. It serves as the gateway to CIS, including Kazakhstan, Ukraine and Russia with an estimated 282 million customers, and to EU with a potential of 508 million customers. Belarus also happens to be a member of regional Associations such as the Eurasian Economic Union (EAEU).

Belarus has an exceptional education system that has led to 90% of the population having higher education or secondary education. Belarus has a history of advanced technical training and education in the field of basic sciences. On a per capita basis, Belarus is ahead of Sweden and Germany in terms of highly qualified graduates.

Investment friendly policies
An enlightened and forward-looking Belarus government has formulated investor-friendly policies. Foreign and local companies can optimize investments and taxes when they operate in any of the six free economic zones such as the Hi-Tech Park and Great Stone Industrial Park. There are well defined positive policies to encourage investment in small sized towns and rural areas in Belarus.

Access to 6 free economic zones
Benefits in these free economic zones focus on income tax and VAT. Income tax is at 0% for five years and VAT is 10%. These economic zones are set up in Minsk and regional cities of Belarus with the aim of promoting high-tech industries leading to economic growth and employment generation.

High-tech Park
Hi-Tech Parks attract investments due to 0% corporate income tax for 15 years and 0% VAT. These Hi-Tech Parks are among the largest in Eastern Europe and are home to over 750 top global companies.

Great Stone Industrial Park
Great Stone is an attractive destination, set up in collaboration as part of a Belarusian-Chinese project to promote manufacturing. Units here enjoy 0% corporate income tax for 10 years. This park is in proximity to Minsk National Airport.

Tax advantage The Belarus government offers special incentives to investments in small cities and rural areas where it wishes to promote employment. Units set up here enjoy tax holiday of 0% tax for 7 years and 0% VAT for 5 years.

Of all these sectors, IT shows the highest level of growth in the past five years. Real estate is in the second place. In 2017 and 2018 mining witnessed fast growth along with manufacturing and construction. The year 2018 saw the rise of creativity, sports and entertainment segments in Belarus with a growth rate of 75% compared to 2017 figures. However, manufacturing segment tops the list in terms of monetary value at 5.62 billion BYN and real estate comes in second at 5.59 billion BYN. Other sectors lag far behind, hovering around the 1 billion BYN mark. Foreign Direct Investment (FDI) figures tend to vary according to sources. The National Bankof the Republic of Belarusclaims that the majority of FDIs arrive via Russia at 46.4% while Cyprus also is a top contender at 16.1%.

Incentives to foreign investors

Belarus is stable with a solid government in place. There are well-defined policies, laws and regulations conducive for foreign investments and there are national level legislations to protect foreign investors. It is safe to invest in Belarus, a stable country with a high growth rate.

Equal rights
Belarus policies are in conformity with the Investment Code regulating investment in the country. This legislation confers equal rights to foreign investors in various matters.

Protection against ownership discrimination
The Government of Belarus assures each investor of protection of full rights and specifically against discrimination of ownership irrespective of nationality. Foreigners and locals are considered equal in the eyes of Law.

Freedom to repatriate profits
Foreign investors have full freedom to operate and manage their business and repatriate profits, reinvest or transfer income after meeting tax and other obligations.

International agreements
Belarus has signed a host of bilateral cooperation agreements with 52 countries on various trade matters and taxation matters including avoidance of double taxation. The National Agency for Investment and Privatization acts as the Nodal agency in charge of such international conformity.