Belarus has made a lot of changes in the past five years to be more attractive to foreign investors. The currency was changed completely and simultaneously devaluated in 2016. The Belarusian ruble is now stable in relation to the USD and Euro. Special economic zones that offer highly advantageous tax breaks to investors in IT and industrial production have been created. The High-Tech Park or HTP in Belarus is especially popular among foreign investors. Hundreds of IT-companies have established research and development units there due to the significant salary tax breaks for developers.
The cost of labor in Belarus is advantageous compared to neighboring countries in the Baltics, Poland or even Russia. This means good opportunities for investors who are interested in outsourcing production of goods or services into Belarus. Belarus also has a very good education system, so the workforce is qualified. This is another reason why the the country is a popular IT outsourcing destination.
Currently Covid-19 and the subsequent economic downturn combined with political instability are significantly reducing foreign investments to Belarus. This is in line with the global trend, as FDI flows were cut by 50 % globally in the first half of 2020. Crises make investing decisions harder, but they also create new opportunities. We invite you to contact us to discuss investing in the country to position yourself in the first wave of new investors to come when the situation normalizes.