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Five situations, and what each one actually owes.

Georgia's system is simple once you know which door you came through. Below is what applies to each kind of client, the deadlines that come with it, and the traps we see most often. Rates and thresholds are current; how they apply to you is something we confirm in writing.

FOUNDERS & DIGITAL NOMADS

Working for yourself, invoicing abroad

Freelancers, consultants and one-person software businesses who want a legitimate base with light reporting. Most register as an individual entrepreneur; the question is which simplified regime you qualify for, and whether VAT is about to catch you.

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HOW THE TAX WORKS
Small Business Status
1% of gross turnover, available to individual entrepreneurs with turnover up to ₾500,000 a year. Cross that and the rate becomes 3% for the rest of the year; exceed it twice in a row and the status is withdrawn. The tax is on revenue, not profit — there are no deductible expenses.
Micro Business Status
0% income tax up to ₾30,000 of gross turnover a year. Declarations are still filed; the tax due is nil. A sensible starting point that we move you off before the threshold bites.
Eligible activity
Neither status depends on your personal tax residency — they follow business registration. But some activities are excluded by law, including consultancy, legal, medical and certain trading work, and you cannot use them to disguise what is really employment.
VAT
Registration becomes mandatory once turnover passes ₾100,000 — well below the small-business ceiling. Services exported to foreign clients are zero-rated, so the outcome is often neutral, but the registration trigger is real.
Filing rhythm
Monthly turnover declarations, plus an annual return in the spring following the tax year. Registration itself is usually one to two working days once documents are in order.
WATCH OUT

Georgian registration does not settle your position elsewhere. If you remain tax resident in another country, or you travel while working, that country may still tax the same income. We look at both sides before recommending a structure.

WHAT WE HANDLE
Registration

Individual-entrepreneur registration, tax ID, and the status application filed correctly the first time.

Eligibility review

A written read on whether your activity qualifies, before you rely on a 1% rate that may not apply.

Monthly filings

Turnover declarations submitted through the Revenue Service portal, with the payment amount confirmed to you.

Threshold watch

We track turnover against both the VAT and status ceilings and tell you before either is crossed.

EXPATS FILING PERSONALLY

Living here, earning from elsewhere

People who have moved to Georgia and need their personal position handled properly — residency established or avoided deliberately, declarations filed, and a certificate in hand when another country asks where you are resident.

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HOW THE TAX WORKS
The 183-day test
Spend 183 days or more in Georgia in any rolling twelve-month period and you become a Georgian tax resident automatically. It is not an election — it happens by operation of law, whatever visa you entered on.
Territorial taxation
Residents report worldwide income but are taxed only on Georgian-source income, at a flat 20%. Foreign-source income — foreign salary, dividends, rents, gains — is reported and then exempt.
The HNWI route
Residency without spending the days is possible for high-net-worth individuals — broadly, assets above ₾3,000,000 or annual income above ₾200,000, together with a qualifying Georgian connection. Useful when presence is the constraint.
Non-residents
Below the threshold you are taxed only on Georgian-source income at 20%, with no obligation to report foreign income — and generally no annual return unless you have Georgian income.
Deadlines & certificates
The annual declaration is due in the spring following the tax year, filed online once you hold a tax ID. A tax residency certificate can be obtained as evidence when you unwind residency in another country.
WATCH OUT

Becoming Georgian tax resident does not end residency elsewhere — most countries require you to take steps. Getting the order and timing of that wrong is the single most expensive mistake we see, and it is entirely avoidable with a few months' notice.

WHAT WE HANDLE
Residency assessment

Day counting, the rolling twelve-month window, and a written conclusion on where you stand.

Annual declarations

Prepared, reviewed with you, and filed — with Georgian and foreign-source income correctly separated.

Residency certificates

Obtained from the Revenue Service for treaty claims and for exiting residency elsewhere.

Treaty questions

Whether a double-taxation agreement changes the outcome, and what evidence the other side will want.

GEORGIAN SMALL BUSINESS

A company with staff, invoices and deadlines

Georgian companies that need the whole monthly cycle taken off their desk — books, payroll, VAT and every letter from the Revenue Service — handled in Georgian by people who will pick up the phone.

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HOW THE TAX WORKS
Corporate income tax
15%, but charged only when profit is distributed or deemed distributed. Earnings you reinvest stay untaxed, which is why cash flow in a Georgian company behaves differently from most jurisdictions.
Dividends
A 5% withholding applies on distributions to individuals and non-residents, and can fall to 0% where a double-taxation agreement applies.
Payroll
Salaries carry 20% income tax withheld at source. For Georgian citizens and permanent residents, pension contributions add 2% withheld from the employee and 2% paid by the employer.
VAT
18%, mandatory above ₾100,000 turnover, with no reduced rates. Returns and payment fall due monthly by the 15th — including reverse-charge VAT on services bought from non-residents.
Property tax
Up to 1% of balance value on business assets, with land taxed separately by type and municipality.
WATCH OUT

Deemed distributions catch people out. Payments that are not obviously dividends — non-business expenses, loans to related parties, excessive charges — can be treated as distributed profit and taxed accordingly. We flag them before the year closes, not during an audit.

WHAT WE HANDLE
Monthly bookkeeping

Records kept to Georgian standards and reconciled against your bank every month.

Payroll run

Salary calculation, pension contributions, withholding and payslips on a fixed cycle.

VAT & returns

Monthly VAT and profit-tax declarations filed by the deadline, every month.

Authority correspondence

Every letter, query and audit request answered in Georgian, on your behalf.

INTERNATIONAL COMPANIES

Opening a Georgian entity inside a group

Companies placing development, support or trading operations in Georgia. The incentives here are genuine and deliberate — but they come with substance conditions, and applying for the wrong one is expensive to unwind.

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HOW THE TAX WORKS
Baseline
A standard Georgian company pays 15% corporate income tax on distributions and deemed distributions, with retained earnings deferred. Dividends carry a 5% withholding, often reduced by treaty.
Virtual Zone
0% corporate income tax on qualifying IT income earned from foreign clients. The exemption depends on the work genuinely being performed from Georgia — the Revenue Service expects local people and evidence that the product was built here, not resold.
International Company
5% corporate income tax on distributed profit from permitted IT and maritime activities, 5% income tax on employee salaries instead of 20%, 0% withholding on dividends and no property tax on qualifying assets. Normally requires demonstrable sector experience. Holding Virtual Zone status cancels it — you choose one.
Free Industrial Zone
Zone entities can reach 0% on corporate income tax, VAT and withholding. Suited to manufacturing, assembly and re-export rather than services.
Treaty network
Georgia has agreements with well over fifty jurisdictions and is not on the EU's list of non-cooperative jurisdictions — which keeps banking and counterparty relationships straightforward.
WATCH OUT

Substance is the whole question. A Georgian entity with no local decision-making, no staff and no premises will struggle to keep a preferential status, and may create permanent-establishment problems in the parent's country instead. We size the structure to the operation, not the other way round.

WHAT WE HANDLE
Entity formation

Subsidiary or branch registration, statutory documents, and bank onboarding for a foreign parent.

Status applications

Virtual Zone or International Company applications, prepared with the evidence the authority actually asks for.

Group reporting

Local books maintained alongside the reporting pack your head office needs, on your calendar.

Intra-group charges

Management fees, royalties and reverse-charge VAT documented so they survive review.

INVESTORS & PROPERTY BUYERS

Holding Georgian assets, and letting them

Buyers of apartments in Tbilisi and Batumi, landlords with a portfolio, and investors deciding whether to hold personally or through a company. The rate you pay on rent depends on choices made before the first tenant moves in.

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HOW THE TAX WORKS
Residential rent
Income from letting residential property can be taxed at 5% rather than the standard 20%, but conditions apply — including that you do not deduct expenses against it. Electing the wrong basis is common and costly.
Commercial rent
Taxed at the standard 20%. Short-let and serviced-apartment activity can also tip you into business territory, with VAT consequences above the registration threshold.
Property tax
For individuals, 0% to 1% depending on household income and the municipality the property sits in. Land is assessed separately by type and location.
Disposals
Gains are generally within the 20% personal rate, but relief can apply depending on how long you have held the asset and how it was used. We check the position before you sell, not after.
Personally or via a company
A company defers tax until profits are distributed and can hold several assets cleanly; personal ownership is simpler and can access the lower residential rate. The right answer depends on scale, horizon and who else is involved.
WATCH OUT

Rental income is Georgian-source, so it is taxable here whether or not you are resident and whatever your home country does with it. Non-resident landlords still have a Georgian filing obligation — one that is easy to discover late, with interest attached.

WHAT WE HANDLE
Structuring review

Whether to hold personally or through a company, modelled on your actual numbers.

Rental filings

The correct basis elected and declarations filed, for residents and non-residents alike.

Property & land tax

Annual assessments checked against municipality rules so you are not overpaying.

Exit planning

The tax position on a sale established in advance, including any available relief.

NEXT STEP

Tell us which one you are.

Describe your situation in a few lines and we will come back within one working day with the structure that applies, the deadlines attached to it and what it costs to keep clean.

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