🇬🇪Georgia vs Estonia🇪🇪
Checked November 4, 2026 · How we score
| Metric | Georgia | Estonia |
|---|---|---|
| Corporate tax | 15% | 22% |
| Top personal tax | 20% | 22% |
| Capital gains tax | 20% | 22% |
| VAT | 18% | 24% |
| Usual entity | LLC (Limited Liability Company) | OÜ (private limited company) |
| Setup cost | $400–$1,500 | $700–$2,200 |
| Yearly cost | $600–$2,200 | $1,200–$3,600 |
| Time to form | 2 days | 3 days |
| Remote setup | Yes | Yes |
| Banking difficulty | 4/5 | 3/5 |
| Digital nomad visa | Yes | Yes |
| Our score | 7.6/10 | 7.7/10 |
Choose Georgia if…
- →Freelancers and consultants with low overhead
- →Remote workers seeking a one-year visa-free stay
- →IT service exporters
Choose Estonia if…
- →SaaS and online founders who plan to reinvest profits
- →Non-EU founders wanting an EU company without moving
- →Startups raising from European investors
Questions people ask
Is Georgia or Estonia better for a new company?
Georgia has the lower overall tax burden (15% corporate, 20% top personal). Estonia is easier to set up, while Georgia is cheaper to run. Estonia carries more weight with banks, investors and customers. Overall, Estonia scores 7.7/10 on our index vs 7.6/10.
Can a foreigner open a company in Georgia?
Yes. A non-resident can register an LLC or register as an individual entrepreneur, often through an agent with a power of attorney. Registration at the National Agency of Public Registry takes 1–3 working days and the state fee is about GEL 100.
How does Georgia's 1% small business tax work?
An individual entrepreneur with Small Business Status pays 1% of gross turnover on income up to GEL 500,000 per calendar year. Exceed the cap and the excess is taxed at 3%, and two consecutive years over the cap ends the status. It is not available to LLCs.
Is Estonia e-Residency worth it?
It is worth it if you want an EU-based company, SEPA banking-like access via fintechs and fully online administration. It is not a tax-saving tool by itself: you still pay tax in your country of residence, and 0% on retained profit helps mainly if you reinvest in the company.
How much tax does an Estonian company pay?
Nothing on retained profit. When you distribute dividends the company pays 22% of the gross distribution (22/78 of the net dividend). The previously announced increase to 24% for 2026 was cancelled.
More comparisons
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.