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Georgia Tax Guide

Europe
Last verified June 2026
Sources & verification

Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.

PwC Worldwide Tax Summaries — GeorgiaGeorgia Revenue Service — Preferential tax regimesAndersen Georgia — 1% Tax Regime
TerritorialLow Rate

Best for

  • Zero capital gains

    No CGT on investment, property, or crypto disposals (subject to "investor" classification).

  • Foreign income exempt

    Territorial system — overseas income generally outside the local tax net.

  • No wealth tax

    No annual tax on net worth or assets.

  • No inheritance tax

    Estate and lifetime transfers not subject to inheritance tax.

  • Crypto-friendly

    0% CGT plus favorable foreign-income treatment make this strong for crypto holders.

Personal Tax Score
82/100
Very Tax Friendly
Business Tax Score
85/100
Very Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days required for tax residency

Income Tax Rates

Top Marginal Rate
20%
Structure
Flat 20% on Georgian-sourced income; Small Business Status (SBS) reduces this to 1% on turnover up to 500,000 GEL/year (~USD 180,000) for individual entrepreneurs in qualifying activities — 3% on excess turnover

Foreign Income Treatment

System
Territorial
Details
Foreign-source income not taxed unless remitted to Georgia

Investment Income

Capital Gains
0%
Dividends
5%
Interest
0%

No capital gains tax on securities for individuals

Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax

Special Regimes

Small Business Status (1% regime)
1% income tax on turnover up to 500,000 GEL/year for individual entrepreneurs (700,000 GEL for agritourism); 3% on excess. Excludes restricted activities (advisory/consulting in some cases, financial services, gambling). From 7 March 2026: SBS becomes effective on the date the request is submitted to the Revenue Service rather than the first of the following month.
High Net Worth Individual
Special tax regime for wealthy individuals

Practical Notes

Low cost of living. Simplified tax system. SBS is one of the most attractive freelancer/solopreneur regimes globally — effective rate ~1% up to USD 180K/year. Various free trade agreements.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
15%
Effective Rate Note
15% corporate tax; virtual zone IT companies pay 0%
Free Zone / Incentives
Virtual Zone status for IT companies offers 0% corporate tax

Withholding Taxes

Dividends
5%
Interest
5%
Royalties
10%

VAT / GST

Rate
18%
Note
18% VAT

Compliance & Substance

Substance Requirements
Low to moderate
Compliance Friction
Low - business-friendly environment

Notable Regimes

  • Virtual Zone IT regime
  • Free Industrial Zones

OECD Pillar Two (15% global minimum tax)

No implementation

No Pillar Two legislation enacted.

See full implementation tracker

Tax Treaty Network

US treatyNo
UK treatyYes
US totalizationNo
Total treaties~60

No US tax treaty. UK and Germany treaties in force. Treaty network covers most CIS and major EU partners.

See full treaty matrix

Data Sources

PwC Worldwide Tax Summaries — GeorgiaGeorgia Revenue Service — Preferential tax regimesAndersen Georgia — 1% Tax Regime

Last verified: June 2026. Always check official sources before making a decision.

FAQ

What is the personal income tax rate in Georgia?

Georgia has a top personal income tax rate of 20%. The tax structure is: Flat 20% on Georgian-sourced income; Small Business Status (SBS) reduces this to 1% on turnover up to 500,000 GEL/year (~USD 180,000) for individual entrepreneurs in qualifying activities — 3% on excess turnover. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Georgia?

Georgia uses a territorial system for foreign income. Foreign-source income not taxed unless remitted to Georgia

What are the residency requirements for Georgia?

Tax residency in Georgia generally requires 183 days of physical presence. 183 days required for tax residency. Always verify current rules with official sources.

Is there a wealth tax in Georgia?

No, Georgia does not have a wealth tax. No wealth tax

What is the corporate tax rate in Georgia?

The corporate tax rate in Georgia is 15%. 15% corporate tax; virtual zone IT companies pay 0%

US citizen moving to Georgia? Read this first.

Georgia uses a territorial system for foreign income. For US citizens this often combines well with FEIE.

  • •Foreign-source income may be exempt or only taxed on remittance in Georgia, but the US still taxes US citizens worldwide. FEIE (~$130k earned income) plus FTC on any Georgia tax paid is the standard combination.
  • •Self-employment tax (15.3%) is owed in full — Georgia has no totalization agreement with the US.
  • •Carefully document whether income is "Georgia-source" or foreign-source. The classification drives both Georgia and US tax outcomes; getting it wrong is the #1 audit risk in this category.
  • •Residency requires 183 days. Special regimes may further reduce Georgia tax — check the country page for current options.
Read the full US-citizen moving-abroad guide

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