Georgian Tax Partners - Your partner in Georgia

Professional consulting is essential due to the legal framework in Georgia. Although the main aspects of the Georgian Tax Code (e.g. tax rates and tax categories) have remained unchanged for more than 15 years, other parts of tax law are subject to frequent amendments, which requires precise compliance with current regulations.

The core points of our support:
Legal tax optimization: Our tax consulting services in Tbilisi help you legally reduce your tax burden – for example through the application of the Estonian tax model.
International agreements: We help you properly utilize double taxation treaties in order to avoid unnecessary tax burdens.
Professional bridge function: We bridge the gap between international standards and the specific Georgian legal framework.
Avoidance of penalties: Incorrect declarations may result in significant fines. We ensure the correct handling of your tax obligations.

The Small Business Status is one of the most attractive tax regimes for sole proprietors in Georgia. It was created to simplify administration and keep the tax burden for self-employed individuals to a minimum.

The most important tax advantages at a glance:
1% turnover tax: Individuals with this status pay only 1% tax on their gross turnover, provided that annual income does not exceed 500,000 GEL (approx. 170,000 EUR, as of 2026).
Increased tax rate in case of exceeding the threshold: If turnover exceeds 500,000 GEL, the exceeding amount is taxed at 3%. Only in case of continuous exceeding (in two consecutive years) is there a risk of losing the status.
Simplified accounting: The monthly tax declaration is straightforward and can be submitted digitally.

Important requirements and restrictions:
Not every activity qualifies for this advantageous regime. There is a list of permitted activities that can be carried out under this status.

Permitted: Including IT services, design, programming, and many other service-related activities.
Excluded: Activities such as consulting, gambling, medical services, or trading certain licensed goods.

Through our consulting services, we ensure that your intended activity meets the criteria and that you can legally benefit from the maximum tax advantages.

Yes, Georgian tax law is particularly attractive for freelancers, IT specialists, and digital nomads who provide services to clients abroad. You can register in Georgia as an Individual Entrepreneur and apply for Small Business Status in order to benefit from the preferential 1% tax rate.

What you need to consider when working remotely for foreign clients:
Service relationship vs. employment: It is essential that your activity is classified as genuine freelancing (B2B). The contractual structure must not resemble dependent employment (false self-employment).
Permitted activities: The 1% status only applies to specific business activities. While software development, design, and marketing are generally accepted without issue, certain consulting services are explicitly excluded from this status.
Structuring and compliance: In order to prevent the Revenue Service from retroactively revoking the status, proper legal classification of your activity is necessary in advance. We support you in structuring your contracts and activity descriptions so that they comply with Georgian regulations in 2026.

With the correct preparation, you secure the benefits of low taxation and avoid being reclassified into the regular 20% income tax regime.

The Virtual Zone Person status is a special tax regime in Georgia specifically created to promote IT companies. It offers one of the most competitive tax models worldwide for software development businesses.

The main tax advantages at a glance:
0% Corporate Income Tax: IT companies providing software services to clients outside Georgia are fully exempt from corporate income tax.
VAT exemption: The provision of IT services to foreign clients is exempt from VAT.
0% export duties: No customs duties apply to the export of software products developed in the country.

Who can apply for this status?
The status is granted to legal entities (companies) that:

1. Operate in the field of information technology.
2. Create or develop software solutions in Georgia.
3. Primarily provide their services to international clients (outside Georgia).

Due to these significant tax benefits, the Virtual Zone is the ideal framework for IT exporters seeking to minimize operational costs and increase global competitiveness.

Obtaining tax residency in Georgia offers attractive advantages, especially for international entrepreneurs. There are generally two ways to qualify as a tax resident:

A. The 183-Day Rule (Standard Procedure)
As a rule, you establish tax residency if you physically stay in Georgia for more than 183 days within a continuous 12-month period. After this period, you are considered fully taxable for the respective tax year.

B. The High Net Worth Individual (HNWI) Program
For wealthy private individuals, Georgia offers an exclusive special regime. This program allows tax residency to be obtained without meeting the 183-day minimum stay requirement.

Requirement: Proof of sufficient wealth or income as well as a connection to Georgia (e.g. through property ownership or local income).
Advantage: Maximum flexibility for globally active investors.

Our support service: We provide comprehensive consulting regarding the individual requirements for both options. In addition, we assist you with all administrative procedures.
Tax ID application: We support you in applying for your Georgian Tax ID at the Revenue Service in order to complete your tax registration in a legally compliant manner.

To be recognized as a High Net Worth Individual (HNWI) in Georgia, a natural person must fulfill one of the following four combinations of conditions:

Option A (Assets & Status):
Proof of total assets exceeding 3 million GEL.
Of this, at least 500,000 USD (equivalent in GEL) directly invested/held in Georgia.
Possession of a Georgian residence permit or citizenship.

Option B (Income & Status):
Proof of annual income exceeding 200,000 GEL during the last 3 years.
Possession of at least 500,000 USD (equivalent) in Georgia.
Possession of a Georgian residence permit or citizenship.

Option C (Assets & Local Income):
Proof of total assets exceeding 3 million GEL.
Of this, at least 500,000 USD (equivalent) in Georgia.
Income from Georgian sources of at least 25,000 GEL during the last tax year.

Option D (Income & Local Income):
Proof of annual income exceeding 200,000 GEL during the last 3 years.
Possession of at least 500,000 USD (equivalent) in Georgia.
Income from Georgian sources of at least 25,000 GEL during the last tax year.

Foreign citizens may acquire non-agricultural land plots and real estate. Restrictions apply to the purchase of agricultural land, and we are happy to assist you in finding legally compliant solutions for your project.

The core principle is the “Estonian Model”, meaning profit retention and the related deferral of taxation. Taxation does not occur on annual profits earned, but only at the time of actual profit distribution.

Tax rate: A corporate income tax of 20% generally applies.
Taxation point: The tax becomes due only when profits are distributed to shareholders (dividends).
Tax-free reinvestment: As long as profits remain within the company and are reinvested, the effective tax burden is 0%.

Advantages for companies:
Through this model, Georgian companies can finance their growth from gross profits, as no annual corporate tax reduces liquidity. This makes Georgia an attractive location for start-ups and expanding businesses.

Yes, individuals in Georgia are also subject to property tax. If your family’s annual income exceeds 40,000 GEL, you are required to pay property tax on real estate and vehicles located in Georgia.

The tax rate is progressive and depends on the market value of the property as well as the level of family income. The rate varies between 0.05% and 1%.

For individuals renting residential property for residential purposes, the tax rate is only 5%. In other cases (e.g. commercial property), the rate is 20%.

The correct classification of residential status is essential in order to legally benefit from the 5% rate. Our team supports you with registration at the Revenue Service and with annual tax declarations.

In Georgia, profits from the sale of cryptocurrencies are exempt from income tax for individuals. Specific regulations apply to companies, and our consultants will gladly provide you with detailed information.

Yes, if you are a tax resident in Georgia, certain income from foreign sources (especially capital income) is exempt from income tax in Georgia.

Yes, Georgia has concluded agreements with 58 countries (including most EU member states, the United Kingdom, etc.). This allows you to avoid double taxation on the same income.