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Georgia tax

Tax residence: At least 183 days in any continuous 12-calendar-month period ending in the tax year. Foreign-source income of residents: Territorial. 3 special regimes for new residents: Small Business Status, Profit tax exemption on IT exports and No income tax up to GEL 30,000.

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Tax residence

Special regimes for new residents

Special regime

Small Business Status (individual entrepreneur)

1% tax

Details
  • On: Taxable income from Georgian-source economic activity
  • Limit: GEL 500k/yr ≈ $193k

1% on taxable income of an entrepreneur natural person; 3% from the month gross income from economic activity exceeds GEL 500,000 (≈ $193,000) until year end. 1 2 3

Taxed on

Taxable income from Georgian-source economic activity, excluding salary and the Article 88(3) income types listed in Ordinance 415 Annex 5; gross income from economic activity (not taxable income) is tested against the GEL 500,000 (≈ $193,000) limit.

Who it applies to

  • Entrepreneur natural person who applies to the Revenue Service and receives a small business certificate (Tax Code Art. 88-89).
  • Income taxed under the regime is Georgian-sourced: the special rate does not cover foreign-source income.
  • Special book of records and tax source documents are kept; the return and payment are due by the 15th of the following month (Art. 91, 93).

Exclusions

  • Ordinance 415 Annex 4 activities cannot receive the status: activities needing a licence or permit, activities requiring significant investment (excisable goods production), foreign-exchange operations, medical, architectural, legal/advocacy, notarial, audit and consulting (including tax consulting) activities, gambling, personnel supply, and production of excisable goods.
  • Annex 5 income is outside the regime and not counted toward the limit: property rent, loan income, gambling winnings, gifts, gains on sale of real estate, vehicles and securities, inheritance, dividends, interest, royalties, debt forgiveness and gains on sale of a partner interest.
  • Salary income is outside the regime.

Limits

  • GEL 500,000 a year (≈ $193,000) · Gross income from economic activity above this in a calendar year: 3% from that month to year end; status revoked from the next year if exceeded in each of two consecutive calendar years.
  • GEL 700,000 a year (≈ $270,000) · Same limit for wine tourism and agro tourism operators.
  • GEL 100,000 a year (≈ $38,500) · VAT registration is mandatory once taxable supplies exceed this over any 12 consecutive months; small business status does not exempt from VAT.

Days in the country

  • At least 183 days in any continuous 12-calendar-month period ending in the tax year · Georgian tax residence of a natural person (Tax Code Art. 34).

Tax residence

Status is a tax registration separate from immigration status; it needs no particular visa.

Visas

No visa grants the status. From 1 March 2026 a foreign self-employed person also needs the right to work from the State Employment Support Agency, and the IT residence permit allows small-business IT entrepreneurs.

Other taxes

VAT registration is mandatory above GEL 100,000 (≈ $38,500) of taxable supplies in 12 months; the regime does not exempt from VAT. Construction activities were excluded from the regime from February 2025 under Ordinance 415 as amended.

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Special regime

Virtual zone person: profit tax exemption on IT exports

0% tax

Details
  • Who: Legal person engaged in IT activities holding virtual zone status

Profit or profit distribution earned by a virtual zone legal entity from supplying information technologies outside Georgia is exempt from profit tax. 1

Taxed on

Profit and distributed profit of a virtual zone legal person from IT supplied outside Georgia

Who it applies to

  • Legal person engaged in IT activities holding virtual zone status (Tax Code Art. 1(35)).

Exclusions

  • Applies to legal entities, not to natural persons.

Visas

Separate from immigration; the IT residence permit covers managers of international IT companies.

Other taxes

Standard profit tax rate is 15% on distributed profit (Art. 97-98).

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Special regime

Micro business status: no income tax up to GEL 30,000

0% tax

Details
  • Who: Natural person who conducts economic activity independently
  • Limit: GEL 30k/yr ≈ $12k

A natural person with micro business status pays no income tax on gross income from independent economic activity up to GEL 30,000 (≈ $11,600) a calendar year. 1

Taxed on

Gross income from independent economic activity by a natural person who uses no hired labour; income types listed by Government decision are not counted.

Who it applies to

  • Natural person who conducts economic activity independently, without hired labour, and applies to the Revenue Service for the micro business certificate (Tax Code Art. 84-85).
  • Gross receivable income during the calendar year does not exceed GEL 30,000 (≈ $11,600).

Exclusions

  • The Government may bar certain activities from the status and may lift the GEL 30,000 (≈ $11,600) limit for specified activities.
  • Status is revoked if the person registers as a VAT payer, applies for small business status, or the inventory balance exceeds GEL 45,000 (≈ $17,300).

Limits

  • GEL 30,000 a year (≈ $11,600) · Maximum gross income in a calendar year for micro business status.
  • GEL 45,000 (≈ $17,300) · Inventory balance above which micro business status is revoked.

Tax residence

The status is a tax registration separate from immigration status and needs no particular visa.

Visas

Independent of the visa or residence permit held.

Other taxes

VAT registration (mandatory above GEL 100,000 (≈ $38,500) of taxable supplies in 12 months) ends the status.

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Standard rules and foreign-source income

Standard rules

Personal income tax: 20% rate and exemption of foreign-source income of residents

20% tax

Foreign-source income: Territorial
Details
  • On: Georgian-source income of residents and non-residents

Income of a resident natural person that is not Georgian-source is exempt from income tax; Georgian-source income is taxed at 20% unless a special regime applies. 1

Taxed on

Georgian-source income of residents and non-residents; foreign-source income and gains of residents are exempt (Art. 82(1)(u)).

Who it applies to

  • Resident: actual presence of 183 or more days in any continuous 12-calendar-month period ending in the tax year (Art. 34).

Exclusions

  • Georgian-source income (including services delivered by a resident provider to foreign customers unless a foreign permanent establishment delivers them) is not exempt; source rules are in Art. 104.

Days in the country

  • At least 183 days in any continuous 12-calendar-month period ending in the tax year · Resident for the tax year; time abroad for treatment, leisure, business trip or education counts as time in Georgia; transit and treatment or leisure stays by listed persons do not.

Tax residence

Non-residents are taxed on Georgian-source income only.

Visas

No visa or permit is required to be tax resident; presence counts, not immigration status.

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Standard rules

Pension income exemptions

Details
  • On: Pension payments and contributions
  • Who: Funded pension scheme participants and voluntary private pension participants
  • Limit: GEL 6,000/yr ≈ $2,310

State pensions, funded-pension contributions and benefits, and voluntary private pension benefits are exempt from income tax; voluntary pension contributions up to GEL 6,000 (≈ $2,310) a year are exempt. 1

Taxed on

Pension payments and contributions

Who it applies to

  • Funded pension scheme participants and voluntary private pension participants.

Exclusions

  • Erroneous or excessive contributions returned, withdrawals before the statutory cases and lump sums beyond the privilege are taxed at 20%.

Limits

  • GEL 6,000 a year (≈ $2,310) · Voluntary private pension contributions by or for a participant exempt up to this total per year.

Tax residence

Foreign pensions of Georgian residents are foreign-source and fall under the territorial exemption.

Visas

No immigration condition.

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Standard rules

Corporate profit tax on distributed profit

15% tax

Details
  • Who: Resident enterprises (general rule)

Resident enterprises pay 15% profit tax on distributed profit rather than on retained earnings. 1

Taxed on

Distributed profit, plus non-business expenses, free supplies and excess representation costs (Art. 97(1))

Who it applies to

  • Resident enterprises (general rule).

Exclusions

  • Banks, credit unions, microfinance organisations and loan providers are taxed at 20% on taxable profit; Free Industrial Zone enterprises have a profit exemption on permitted zone business (Art. 99(1)(m)).

Visas

None.

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Standard rules

Georgia funded pension: 2% employee, 2% employer and 2% state contribution for employees who are citizens or permanent residence permit holders

2% tax

Details
  • Who: The law applies to employers, citizens of Georgia
  • Limit: GEL 24k/yr ≈ $9,240

The funded pension law covers Georgian citizens and foreign citizens or stateless persons holding a permanent residence permit. For such employees the employer pays 2% of taxable salary, a further 2% is withheld from the employee, and the State adds 2% on the first GEL 24,000 (≈ $9,240) of annual salary and 1% on the portion from GEL 24,000 (≈ $9,240) to GEL 60,000 (≈ $23,100); self-employed persons pay 4% and receive the same state contribution. Foreigners on temporary residence permits are outside the stated scope. 4

Taxed on

Taxable salary of an employee (employer 2% at its own expense, employee 2% transferred by the employer on the employee's behalf); income of a self-employed person (4%). State contribution: 2% of salary or income within the first GEL 24,000 (≈ $9,240) a calendar year, 1% on the part above GEL 24,000 (≈ $9,240) up to GEL 60,000, (≈ $23,100) nothing above GEL 60,000 (≈ $23,100).

Who it applies to

  • The law applies to employers, citizens of Georgia, and foreign citizens and stateless persons with permanent residence permits in Georgia (art. 1(4)).
  • Joining and contributing is mandatory for employees, except those who were aged 60 (men) or 55 (women) before the law took effect; self-employed persons join voluntarily.
  • A participant who loses citizenship or the permanent residence permit may claim the pension assets as a lump sum (art. 34-1).

Exclusions

  • Foreign nationals on temporary residence permits are not within the scope in art. 1(4).

Limits

  • GEL 24,000 a year (≈ $9,240) · State contribution of 2% applies within the first GEL 24,000 (≈ $9,240) of annual salary or income
  • GEL 60,000 a year (≈ $23,100) · State contribution of 1% applies from GEL 24,000 (≈ $9,240) to GEL 60,000 (≈ $23,100); none above

Tax residence

Contributions are made in lari through the employer's income declaration and are separate from the 20% personal income tax.

Visas

The permanent residence permit is the status that brings an alien within the scheme.

Other taxes

Personal income tax at 20% on Georgian-source income applies separately (see “Personal income tax: 20% rate and exemption of foreign-source income of residents”).

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VAT, social security and other taxes

Questions people ask

When do you become a tax resident in Georgia?

At least 183 days in any continuous 12-calendar-month period ending in the tax year (Resident for the tax year; time abroad for treatment, leisure, business trip or education counts as time in Georgia; transit and treatment or leisure stays by listed persons do not). Non-residents are taxed on Georgian-source income only.

Is foreign-source income taxed in Georgia?

Territorial. Income of a resident natural person that is not Georgian-source is exempt from income tax; Georgian-source income is taxed at 20% unless a special regime applies.

Who qualifies for Small Business Status?

Entrepreneur natural person who applies to the Revenue Service and receives a small business certificate (Tax Code Art. No visa grants the status.

Who qualifies for Profit tax exemption on IT exports?

Legal person engaged in IT activities holding virtual zone status (Tax Code Art. Separate from immigration; the IT residence permit covers managers of international IT companies.

Who qualifies for No income tax up to GEL 30,000?

Natural person who conducts economic activity independently, without hired labour, and applies to the Revenue Service for the micro business certificate (Tax Code Art. Independent of the visa or residence permit held.

≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.

Sources (4)

Official sources

  1. Tax Code of Georgia (consolidated English text, publication 25/06/2026 to 30/09/2026) · Legislative Herald of Georgia (matsne.gov.ge) · checked 2026-10-11
  2. Government Ordinance No 415 on special tax regimes (Annexes 4 and 5, Georgian text) · Legislative Herald of Georgia (matsne.gov.ge) · checked 2026-10-11
  3. Government Resolution No 19 of 24 January 2025 amending Ordinance 415 Annex 5 (applies from 1 January 2025) · Legislative Herald of Georgia (matsne.gov.ge) · checked 2026-10-10 · published 2025-01-24
  4. Law of Georgia on Funded Pension (arts. 1, 3 and 34-1; as amended to 27 June 2024) · Legislative Herald of Georgia (matsne.gov.ge) · checked 2026-10-11 · published 2024-06-27