WHY BELARUS

FAVORABLE LOCATION OF THE COUNTRY

Belarus is a country with rich history, dynamic present and a great potential for the future. Located at the intersection between important international transport tracks, Belarus traditionally serves as the connecting link in the trade between EU and EEU countries. Beneficial position at the junction between two economic macro-regions is a significant factor of interest of international business in investment into our country. $6,6billion the volume of foreign direct investments in the country in 2021increased by 27% as compared to 2020.

BEST COUNTRY FOR TRAVELLING

Picturesque nature, hospitality and cordiality are the landmarks of tourist attractiveness of the country. Forests that occupy more than a third of the country’s territory, lakes and rivers, rare plants and wild animals that are carefully protected in national parks and reserves create the unique national identity. In 2019, Belarus was included in top 10 countries to travel according to the international publisher Lonely Planet.

THE MAIN TREASURES OF BELARUS ARE

Its highly educated, diligent and law-abiding citizens. Belarus is on the level of countries with extremely high human development index, such as Japan and France.

• 50 The number of universities in the country
• 400 The number of specialties that can be mastered in the universities of Belarus
• 17 Out of 163 in Access to Basic Knowledge in the 2020 Social Progress Index
• 99,7% Adult literacy rate in Belarus

BELAUS INTERNATIONAL RATINGS

• 60th place In 2021 (among 191 countries) in the Human Development Index
• 34th place In 2022 (among 163 countries) in the SDG (Sustainable Development Goals) Index lugar
• 32th place In 2019 (among 189 countries) in the Education Index
• 36th place In 2022 (among 146 countries) in the Global Gender Gap Index
• 35th place In 2020 (among 152 countries) in the UNCTAD rating by index of electronic commerce of consumer business
• 55th place in 2022 (de 113 países) en el Índice Global de Seguridad Alimentaria (The Global Food Security Index)
• 58th place In 2022 (among 192 countries) in the E-Government Development Index
• 47th place In 2020 (among 143 countries) in the Sustainable Economic Development Assessment rating
• 46th place In 2020 in the international rating by index of competitive industrial ability (among 152 countries)
• 65th place In the World Happiness Report as of 2022 (improvement by 10 points as compared to 75th place in 2021)

EXPORT ACTIVITIES

Belarus is an export oriented state with developed industry, service sector and agriculture. In 2021, the volume of foreign trade of goods and services amounted to $94.7 bln (sales balance surplus of $3.77 bln), the export of goods increased by 37.4% to $39 bln, the export of services increased by 16.4% and reached $10.2 bln. 94,7billion as the volume of foreign trade in goods and services in 2021 with a trade surplus $3.77 billion. Belarus maintains trade relations with more than 200 countries of the world.

 

THE CORE OF EXPORT

The core of export is formed by oil and petroleum products, potassium and nitrogen fertilizers and metals. The main products include:

• trucks and passenger cars
• tractors
• passenger vehicles
• tires
• dairy and meat products
• furniture

The main import items are oil and natural gas, raw materials, metals and metal products, machine parts and process equipment.

TOP-5 DIRECTIONS OF FOREIGN INVESTMENTS IN THE COUNTRY IN 2021

Belarus has significant investment potential.

In 2021, the country received foreign investments in the amount of $8.7 billion, of which $6.6 billion (75.4%) is foreign direct investment, the volume of which increased by 27% in 2021. The leaders in investments in Belarus are Russia (42.6%), Cyprus, China, USA, Germany and other EU countries.

 36,4% IN INDUSTRY

31,4% IN WHOLESALE AND RETAIL TRADE

11,4% IN TRANSPORT ACTIVITIES, WAREHOUSING

9,8% IN INFORMATION AND COMMUNICATION

4% IN CONSTRUCTION

WHY DO FOREIGN INVESTORS CHOOSE BELARUS

The attractiveness of Belarus for foreign investors is determined by the following factors:

Strategically beneficial location with developed infrastructure

• extensive network of railways and air ways makes it beneficial for foreign companies to open their logistic departments in Belarus
• 2 trans-European corridors cross the country (North-South, East-West)
• over 100 million tons of European cargoes (25-40% of their bandwidth are transported daily through Belarus

Direct access to the market of 5 EEU countries

• unified customs zone of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan (186 million people)
• free movement of goods, capital and work force, equal business conditions and cost of energy resources
• unified rules of technical regulation, sanitary, veterinary and phytosanitary norms

Highly qualified workforce and high scientific and technical potential

Professional training systems allow Belarusian specialists to operate successfully in any fields:

• agriculture
• biotechnologies
• software development

High quality of life

• Strong positions of the country in the categories of health protection, quality of drinking water and access to electricity
• unique environment for full-scale life
• relatively low cost of living, medicine and leisure
• low crime rate

Proven authority of the country in the world thanks to the quality and environmental safety of Belarusian products

Belarus is the only one of CIS countries to have implemented the Investment Code that regulates investment activities within the country

Favorable tax environment

• a number of preferential treatments
• progressive economic legislation
• state-protected investor rights

THE GROWTH OF FOREIGN INVESTMENT

Consistent increase in foreign investments is the result of creation of favorable conditions in the country: a number of preferential treatments is applied, which are useful for foreign companies from the point of view of tax planning and optimization:

• Free economic zones (FEZ)
  Income tax, land tax, property tax, VAT, import duties – 0%
• Great Stone Industrial Park
  VAT, offshore duty – 0%
• High Technologies Park (HTP)
  Income tax, offshore duty, VAT – 0%
• Small and medium cities, countryside
  Income tax, property tax, VAT, import customs duties – 0%
• Southeast part of the Mogilev Region
  Income tax for 7 years from the date of commencement of work – 10%
• Bremino-Orsha SEZ
  Income tax, property tax, profit tax, dividends tax – 0%
• Investment agreement
  VAT, customs duties and VAT for import of equipment – 0%

BELARUS AS AN IT STATE

The IT industry is one of the fastest growing industries in the country. Belarus is successfully implementing a course towards building an IT country and the transition to a digital economy.

Belarusian companies have created such projects as:

1.  World Of Tanks with over 120 million users

2. Viber which is the 3rd most popular messenger in the world

3. Msqrd with over 10 million downloads, purchased by Meta (Facebook)

Belarus is a recognized IT leader in the Eastern European region

32nd place in the development of information and communication technologies (ICT) among 176 countries, a leader among the CIS countries. Belarus is one of the world leaders in the export of IT services per capita, as well as in the development of world-class software. In 2022, ten IT companies with offices in Belarus entered the top 100 best outsourcing companies in the world in The Global Outsourcing 100. Belarus is successfully implementing a course towards building an IT country and the transition to a digital economy

Belarus was the first among the CIS countries to complete the full transition to digital broadcasting and successfully completed testing of the 5G network. Belarus is the first country in the world that legalized cryptocurrencies with the Decree of the President of the Republic of Belarus No. 8 “On the development of the digital economy” dated December 22, 2017.

HIGH TECHNOLOGIES PARK

Since 2005, High Technologies Park (HTP) has been working in the country, where the special legal regime is applied, established by the Decree of the President of the Republic of Belarus dated December 21, 2017 “On Development of Digital Economy”. It provides residents of the park with minimal tax rates, tools of the so-called English Law, possibility of free movement of capital, transparent regulation of the blockchain and cryptocurrency spheres and other preferences.
Residents of the park may be registered and operate in any part of Belarus.

GREAT STONE CHINESE-BELARUSIAN INDUSTRIAL PARK

Special economic zone with a special legal mode located 25 km away from Minsk. International ecological city with the focus on high-tech innovative production with a high export potential is currently being created within the park. In 2021, total number of residents of the park reached 85 companies with founders from 15 countries (including 43 companies with Chinese capital) and the volume of claimed investments of $1.24 bln.

Priority directions of activity for the park include:

• machine building
• electronics and communication
• biotechnologies
• pharmaceutics
• new materials
• logistics
• e-commerce
• storage and processing of big data

Beneficial location

The Great Stone is the anchor point of the Silk Road Economic Belt, which acts as a communication link between Europe, the CIS and Russia.

Infrastructure

The park has a modern production, engineering and transport, customs and social and administrative infrastructure.

Preferences

The special economic regime of the park provides residents with zero rates of income tax, land tax and real estate tax, customs duties and VAT.

Simplified procedures

The one-stop service system allows companies to perform all administrative procedures in one place.

FREE ECONOMIC ZONES

For the purpose of promoting launch of new modern production facilities using advanced technologies and aimed at manufacturing of products that are able to compete in international markets, there are six free economic zones in Belarus with special conditions for business:

• Brest FEZ
• Vitebsk FEZ
• Gomel-Raton FEZ
• Grodnoinvest FEZ
• Minsk FEZ
• Mogilev FEZ

Preferences

FEZ residents are exempted from income and property taxes, land tax and land plot rent and receive other preferences within the framework of implementation of investment projects.

Conditions for registration as a FEZ resident

Investments in the volume of at least 500 thousand euros in implementation of a project for creation or development of production oriented on export or import substitution.

Number of residents

As of the beginning of 2022, 432 companies were registered as residents of the FEZ.

SILK ROAD