South Caucasus · Eastern Europe

Georgia

Georgia combines a 20% flat personal income tax, a territorial-style rule that generally keeps resident individuals outside Georgian tax on foreign-source income, and a 15% distributed-profits corporate regime, with special regimes for qualifying small businesses and Georgian-developed IT exports.

Photo by Iman Gozal on Unsplash

Suitability

•Resident individuals are generally exempt on income that does not have a Georgian source

•Standard personal income tax is a flat 20%

•Corporate income tax is generally charged when profits are distributed, not when they accrue

•Qualifying small-business individual entrepreneurs can use 1% turnover tax while annual turnover stays below GEL 500,000

•Virtual Zone persons can exempt profit from supplying Georgian-developed IT outside Georgia

•Citizens of many countries can stay visa-free for one full year, and Georgia now also has dedicated work, IT, and investment residence-permit routes

•Tbilisi remains low-cost relative to most European capitals

Tax

Personal Rate20% flat; resident individuals are generally exempt on income that does not have a Georgian source

Corporate Rate15% CIT on distributed profits under the Estonian-model system, rather than a plain annual tax on retained earnings

Tax SystemTerritorial-style PIT for individuals plus an Estonian-model distributed-profits CIT for companies

Pillar Two

P2: UNVERIFIED

UNABLE TO VERIFYPrimary Georgian sources reviewed for this page do not confirm an enacted domestic Pillar Two charging regime as of 2026-04-20.

Georgia tax residents generally pay 20% on Georgian-source employment and business income, while foreign-source personal income is generally outside Georgian tax. Georgian companies usually pay 15% CIT only when profits are distributed. Small-business and Virtual Zone outcomes are regime-specific and only apply if the statutory conditions are met.

High-volatility checks

Source-based PIT, distributed-profits CIT, and special-regime eligibilityLast checked2026-04-20

Georgia’s tax headlines look simple, but source classification, special-regime eligibility, and current Revenue Service guidance on regime transitions can materially change the result.

PwC Tax Summaries — Georgia — Individual income tax·PwC Tax Summaries — Georgia — Corporate income tax·PwC Tax Summaries — Georgia — Corporate tax credits and incentives·Revenue Service — Preferential tax regimes·Ministry of Finance of Georgia — BEPS project

· VERIFIED: 2026-04-20

Residency

Georgian tax residency is a tax test, not a residence-permit label. Under Article 34 of the Tax Code, an individual becomes Georgian tax resident for the tax year after 183 days of actual stay in any continuous 12-calendar-month period ending in that tax year. Immigration permissions such as visa-free entry, work residence, IT residence, or investment residence do not by themselves settle Georgian tax residency.

Residency TestROUTE & STATUS SPECIFIC

Common Routes

•Citizens of many listed countries can generally stay in Georgia visa-free for one full year; EU citizens can also enter with a passport or national ID card
•Holders of visas and/or residence permits of 50 listed countries may enter Georgia without a Georgian visa for 90 calendar days in any 180-day period under Ordinance No 256, but that exception is not a Georgian residence permit
•Work Residence Permit — for labour immigrants or foreigners carrying on entrepreneurial activity in Georgia; current rules require income and employer or business turnover evidence
•IT Residence Permit — for qualifying IT employees, qualifying small-business IT sole entrepreneurs, or authorised representatives of international IT companies; the current SDA page requires two years of IT experience and evidence of at least USD 25,000 annual remuneration
•Investment Residence Permit — tied to at least USD 300,000 qualifying investment or property; a short-term residence permit exists from USD 150,000 qualifying immovable property

High-volatility checks

183-day tax residence versus permit-based immigration routesLast checked2026-04-20

Georgia separates tax residence from immigration permission: the 183-day rule sits in the Tax Code, while work, IT, investment, and property routes sit under separate migration rules and do not themselves decide tax residency.

Visa-free one-year stays, Ordinance No 256, and permit route conditionsLast checked2026-04-20

Georgia combines several entry frameworks — one-year visa-free access for many nationalities, the 90/180 exception for certain foreign visa or residence-permit holders, and separate residence-permit categories — so route details should be checked against the current official list before travel or filing.

Tax Code of Georgia·PwC Tax Summaries — Georgia — Residence·State Service Development Agency — Migration / Residence Permits·Georgia Travel — Visa Application / visa-free countries·Government of Georgia Ordinance No 256 — visa-free entry for certain foreign visa/residence-permit holders

· VERIFIED: 2026-04-20

Cost

Overallbudget (EUR 491/month single person excluding rent in Tbilisi)

Housingmid (GEL 1,345–2,690/month for 1-bed city centre in Tbilisi)

CoworkingUSD 80–200/month for a dedicated desk

Lifestyle

ClimateHumid subtropical in Tbilisi (hot summers 35 °C+, cold winters); Black Sea coast warmer year-round

TimezoneGET (UTC+4) — no daylight saving time

LanguageGeorgian (unique script); English spoken in expat areas and hospitality; Russian widely understood among older residents

InternetGood — fibre available in major cities; mobile coverage strong in urban areas; rural coverage patchy

Family FitModerate — limited international schooling outside Tbilisi; improving private healthcare infrastructure; strong food culture and safety

Cautions

Georgia is not a blanket “0% foreign freelancer” jurisdiction: Georgian-source analysis still matters, and work physically performed in Georgia can create Georgian-source income even where residents are generally exempt on foreign-source income.
Virtual Zone relief is limited to profits from qualifying IT created by the virtual zone person and supplied outside Georgia; Georgian-source or non-qualifying revenue can fall outside the exemption.
Georgia’s corporate tax is distribution-based, so dividend timing and non-business / deemed-distribution adjustments matter more than under a standard annual-accrual CIT system.
Small-business status is activity-limited and threshold-sensitive; exceeding GEL 500,000 moves the rate to 3%.
Tax residence and immigration residence are separate analyses: 183 days can create Georgian tax residence even without a residence permit, while a permit does not itself settle tax status.
Georgia is not an EU member — no Schengen access, no EU banking passporting.

Keep researching Georgia

Use this profile as a starting point, then confirm the relevant tax, residency, and business rules with a licensed professional before you act.