Georgia Taxes Explained: Everything You Need to Know in One Page

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You're thinking of moving to Georgia, or you've just arrived, and you want the full picture first. This page covers how the system works, every main tax, the newcomer regimes and business options – all for 2026.

Georgia tax system in 2026: the key figures

Is this guide for you?

Read on if you…

• plan to live in Georgia as a freelancer, remote worker or founder;
• want to compare Georgia with other low-tax bases in Eastern Europe;
• need a map of every tax before diving into details.

Probably not your case if you…

• are a US citizen hoping Georgia ends your US tax filing (it won't);
• run a bank, insurer or other regulated financial business, which follows different profit tax rules.

How does the Georgian tax system work?

Residence, then source

You're a Georgian tax resident if you spend 183 days or more in Georgia in any continuous 12-month period ending in the tax year. Wealthy people can also apply for high net worth individual status, which grants residence without the day count. All details are in tax residency in Georgia.

Territorial for individuals

Here's what makes Georgia unusual. Individuals are taxed on a territorial basis – only Georgian-source income is taxed. Foreign dividends, foreign rent and most foreign gains are exempt, even for residents.

The catch: work you physically do in Georgia is usually Georgian-source. A remote worker in Tbilisi isn't automatically tax-free.

One authority, one code

The Revenue Service under the Ministry of Finance collects almost every tax. The rules sit in one law, the Tax Code of Georgia. Most filing happens online through the Revenue Service portal. Annual personal returns are due by 31 March.

What are the main taxes in Georgia?

Excise duties, import duties and local fees are covered in specific taxes in Georgia. Personal allowances are thin, but some exist – see personal tax deductions and benefits of Georgia.

Are there special regimes for newcomers?

There's no dedicated expat regime. Georgia offers general incentives that newcomers use heavily.

• Small business status. Register as an individual entrepreneur (a sole trader) and pay 1% of turnover. Some activities are excluded.
• Territorial taxation. Foreign-source investment income stays untaxed, with no time limit.
• International Company status. Qualifying IT and maritime companies pay 5% profit tax, 0% on dividends and 5% income tax on salaries. Substance and experience conditions apply.
• Free Industrial Zones. Companies in zones like Tbilisi, Kutaisi and Poti get profit tax and VAT relief on qualifying activity.

A full breakdown sits in tax incentives for expats and digital nomads in Georgia.

How do moving in and moving out work?

Moving in

Many nationalities can stay up to one year visa-free, including EU, UK and US citizens. Residence permits exist for work, business and property owners.

1. Before you move: check your old country's exit rules and treaty with Georgia.
2. On arrival: get a Georgian ID number, open a bank account, register any business.
3. After 183 days: request a certificate of tax residence from the Revenue Service.

The step-by-step version is the practical guide to obtaining your tax residency in Georgia.

Moving out

Good news: Georgia has no exit tax for individuals. When you leave, close or suspend your individual entrepreneur registration and file your final returns. Keep proof of your departure date. See the practical guide to ceasing your tax residency in Georgia.

How is running a business taxed in Georgia?

The main options

• Individual entrepreneur with small business status – 1% of turnover. Best for most solo freelancers.
• Individual entrepreneur without status – 20% on profit after expenses.
• Limited liability company (LLC) – no minimum capital. Profit is taxed at 15% only when distributed, then 5% on dividends.

Georgia's company tax follows the Estonian model. A company pays nothing while it keeps and reinvests profit. Tax hits only on dividends and on costs treated as hidden distributions.

Compare structures in legal forms of business in Georgia and read the details in corporate income taxes in Georgia.

Here's the catch

Under the Estonian model, private costs paid by the company count as distributions. They're taxed like dividends. The rules are in business expenses in Georgia. Remote founders must also watch management and control: if you run the company from abroad, another country may tax it.

Common mistakes (and what they cost)

• Believing Georgia doesn't tax remote work → income from work done in Georgia can be taxed at 20%, plus penalties.
• Not applying for small business status → you pay 20% on profit instead of 1% on turnover.
• Using the company as a personal wallet → private costs are taxed as distributions, with penalties on top.
• Keeping strong ties to your old country → it may still tax your worldwide income.
• Ignoring the VAT threshold → back VAT at 18% on sales above GEL 100,000, plus interest.

Frequently asked questions

What is the income tax rate in Georgia in 2026?

The standard personal income tax rate is a flat 20%. Dividends and interest are taxed at 5%. Individual entrepreneurs with small business status pay 1% of turnover up to GEL 500,000 a year. Foreign-source income of individuals is exempt, whether or not you're resident in Georgia.

Is Georgia a tax haven?

No. Georgia has a full tax system, tax treaties with over 50 countries and follows OECD standards on information exchange. It does have low rates and territorial taxation for individuals. That makes it attractive for freelancers and investors, but it isn't on the EU list of non-cooperative jurisdictions.

Does Georgia tax worldwide income?

Not for individuals. Georgian residents pay tax only on Georgian-source income. Foreign dividends, interest, rent and most foreign capital gains are exempt. Companies are different: a Georgian company is taxed on its distributed profit, wherever the profit came from. Work done physically in Georgia is usually Georgian-source income.

How do I become tax resident in Georgia?

Spend 183 days or more in Georgia in any continuous 12-month period ending in the tax year. Then ask the Revenue Service for a residence certificate. High net worth individuals can apply for resident status without meeting the day count. Your former country may still apply its own residence tests.

Does Georgia have a wealth or inheritance tax?

There's no wealth tax. There's no separate inheritance tax either. Inheritances and gifts from close family members are exempt from income tax. Gifts and inheritances from others can be taxed as income above a small threshold. Property tax of up to 1% applies to some property owners.

Is there an exit tax when I leave Georgia?

No. Georgia doesn't tax unrealised gains when an individual leaves. You simply stop being resident once you no longer meet the 183-day test. Close or suspend your entrepreneur registration and file final returns. Your new country may have its own entry rules on asset values.

Georgia tax guides

• Tax residency in Georgia – the 183-day test, HNWI status and residence certificates.
• Practical guide to obtaining your tax residency in Georgia – your move plan, step by step.
• Practical guide to ceasing your tax residency in Georgia – how to leave cleanly.
• Tax incentives for expats and digital nomads in Georgia – the 1% regime, territorial taxation and visas.
• Personal tax deductions and benefits of Georgia – the allowances that do exist.
• Legal forms of business in Georgia – individual entrepreneur, LLC and others compared.
• Corporate income taxes in Georgia – the Estonian model and the 15% rate.
• Business expenses in Georgia – what's deductible, and what counts as a distribution.
• Specific taxes in Georgia – property tax, excise and other levies.
• Tax fraud regulations of Georgia – penalties, audits and fixing mistakes.

Related guides

• Romania tax landscape overview
• Bulgaria tax landscape overview
• Hungary tax landscape overview
• Tax residency in Georgia
• Tax incentives for expats and digital nomads in Georgia
• All country tax guides

Sources

• Revenue Service of Georgia
• Legislative Herald of Georgia – Tax Code of Georgia
• Ministry of Finance of Georgia
• Pension Agency of Georgia
• OECD – Tax
• PwC Worldwide Tax Summaries – Georgia

This guide is general information, not personalised tax advice. See how we research and review.