Starting a business in
🇬🇪Georgia
Checked November 4, 2026 · How we score
Corporate tax
15%
Top income tax
20%
Setup from
$400
all-in, first year
Time to form
2 days
can be done remotely
Taxes in Georgia
| Corporate income tax | 15% Estonian-style: 0% on retained profit, 15% on distributed profit (15/85 of net). Virtual Zone IT companies (exporting software/IT services) and International Companies get 0% or 5% regimes subject to approval. Small Business Status (1% of turnover up to GEL 500,000) is for individual entrepreneurs, not LLCs. |
|---|---|
| Personal income tax (top) | 20% Flat 20% on employment and business income. Individual entrepreneurs with Small Business Status pay 1% of gross turnover up to GEL 500,000 (3% on the excess month onward; status is lost if the cap is exceeded two years in a row). Check rs.ge for 2026 changes to the special-regime rules. |
| Tax system | Territorial (foreign income untaxed) |
| Capital gains tax | 20%Taxed at the ordinary 20% rate; gains on property held 2+ years and on listed securities held 2+ years are generally exempt. Verify specifics with the Revenue Service. |
| Dividend withholding (non-residents) | 5% |
| VAT / GST | 18% |
| Social security | Pension scheme: 2% employee, 2% employer, 2% state. Individual entrepreneurs with Small Business Status pay no social charges. VAT registration is mandatory above GEL 100,000 annual turnover. |
Forming a company in Georgia
| Usual entity | LLC (Limited Liability Company) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $400–$1,500 |
| Annual running cost | $600–$2,200 |
| Time to incorporate | 2 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Citizens of roughly 95 countries can stay visa-free for up to one year, so many founders never need a permit. A 1-year residence permit is available with a USD 100,000 property purchase or by running a registered business. Details of the remote-worker programme should be rechecked with the government before applying.
| Digital nomad visa | Remotely from Georgia, $2,000/month income |
|---|---|
| Golden visa | Yes, from $100k |
| Ease of residency for founders | 2/5 (1 = easiest) |
Special tax regimes
Small Business Status (1% tax)
Individual entrepreneurs pay 1% on gross turnover up to GEL 500,000 per year; foreign-source and service income qualify, with no social contributions.
Virtual Zone Person (IT)
IT companies exporting services abroad can be exempt from corporate income tax on that profit and from tax on dividends paid out; requires approval from the Revenue Service.
International Company status
5% profit tax regime for qualifying holding, shipping and service companies that meet substance requirements.
Territorial treatment of foreign income
Most foreign-source income of individuals is not taxed in Georgia in practice, which is why it is promoted as a territorial system; confirm your own case.
Pros and cons
Why founders pick Georgia
- 1% turnover tax for sole traders up to GEL 500,000
- Visa-free stay up to 1 year for most Western passport holders
- Very fast and cheap registration (state fee about GEL 100)
- 0% on retained profit in an LLC
Watch out for
- Georgian banks usually need an in-person visit; Stripe and PayPal merchant support is limited
- Not an EU country; weaker credibility with some banks and EU customers
- Small Business Status is capped at GEL 500,000 turnover and cannot be held by LLCs
- Special-regime rules change often (new rules took effect March 2026)
- Tax residency rules (183 days) can pull you into 20% tax if you stay long
Best for: Freelancers and consultants with low overhead · Remote workers seeking a one-year visa-free stay · IT service exporters
Georgia: common questions
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.
Does Georgia tax foreign income?
Georgia is generally described as territorial: foreign-source income of individuals is largely outside the 20% tax. Tax residents (183+ days) should still get local advice, and your home country may tax you regardless of Georgian rules.
Can I get a bank account in Georgia as a non-resident?
Usually yes, but it typically requires an in-person visit to TBC or Bank of Georgia and proof of business activity. Remote opening is limited, and international payment processors such as Stripe do not support Georgian entities.
What is a Virtual Zone company in Georgia?
It is a status for IT companies that sell software or IT services to customers outside Georgia. Qualifying profit is exempt from corporate tax and dividends are not taxed, but you must apply to the Revenue Service and keep the activity strictly export-based.
Sources
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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.