Tax Incentives for Expatriates and Digital Nomads in Georgia
Georgia, nestled in the Caucasus region, has emerged as a burgeoning destination for expatriates and digital nomads seeking a blend of cultural immersion and economic opportunities. The Georgian government recognizes the potential of these individuals to contribute to the country's growth and has implemented a range of tax incentives to attract and retain them.
Eligibility Criteria
To qualify for tax breaks as an expatriate or digital nomad in Georgia, individuals must meet specific criteria:
- Expatriates: Individuals who have resided in Georgia for at least 183 days in a calendar year are considered tax residents.
- Digital Nomads: Individuals who work remotely for companies outside Georgia and have a valid work visa or residence permit are eligible for digital nomad status.
Types of Tax Breaks
Georgia offers several tax breaks tailored to expatriates and digital nomads:
- Personal Income Tax Exemption: Expatriates and digital nomads are exempt from personal income tax on foreign-sourced income, including salaries, dividends, and interest.
- Corporate Income Tax Exemption: Digital nomads who establish a local company in Georgia can benefit from a 0% corporate income tax rate on foreign-sourced income.
- Social Security Contributions Exemption: Expatriates and digital nomads are exempt from social security contributions on foreign-sourced income.
Application Process
To claim these tax breaks, individuals must follow the following steps:
- Expatriates: Obtain a tax residency certificate from the Georgian Revenue Service (GRS) by submitting proof of residency, such as a lease agreement or utility bills.
- Digital Nomads: Apply for a digital nomad visa or residence permit through the Georgian Ministry of Foreign Affairs. Once approved, register with the GRS to obtain a tax identification number.
Legal Framework
The tax incentives for expatriates and digital nomads in Georgia are outlined in the following legal documents:
- Tax Code of Georgia: Article 10 establishes the personal income tax exemption for foreign-sourced income.
- Law on Income Tax: Article 15 provides the corporate income tax exemption for foreign-sourced income.
- Law on Social Insurance: Article 10 exempts expatriates and digital nomads from social security contributions on foreign-sourced income.
Rationale and Objectives
Georgia's tax incentives for expatriates and digital nomads aim to:
- Attract skilled professionals and entrepreneurs to contribute to the country's economic development.
- Foster a welcoming environment for remote workers and digital nomads.
- Promote Georgia as a hub for international talent and innovation.
By offering these tax breaks, Georgia seeks to create a favorable tax regime that encourages expatriates and digital nomads to make Georgia their home, contributing to the country's economic growth and cultural diversity.
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