Georgia, a dynamic country located at the crossroads of Eastern Europe and Western Asia, has developed a remarkably innovative and business-friendly tax system that has garnered international attention. Known for its radical tax reforms and digital-first approach, Georgia has transformed its economic landscape to become an attractive destination for entrepreneurs, digital nomads, and international investors.
The Georgian economy has shown significant resilience and growth, with key sectors including technology, tourism, agriculture, and service industries. The country's tax framework is characterized by its simplicity, low rates, and progressive digital approach to taxation and business registration.
The expat community in Georgia continues to grow, drawn by the country's unique tax advantages, low cost of living, and strategic location between Europe and Asia. Cities like Tbilisi have become hotspots for international professionals and digital entrepreneurs.
Georgian Income Tax
Georgia employs a relatively simple and competitive personal income tax system:
Tax characteristics for 2025:
- Flat Income Tax Rate: 20% for most income types
- Special provisions for certain types of income
- Exemptions for specific investment and business activities
Social security contributions (as of 2025):
- Unified Social Security Payments:
- Employer contribution: 2.22% of gross salary
- Most social security costs are covered by the state
- Voluntary social insurance options available
If you want to have a better understanding of the taxes you should pay on personal income in Georgia, you can use the personal tax calculator in the Taxation section of the Georgia page.
Georgian Tax on Overseas Income
Georgia's approach to foreign income is notably favorable:
- Residents: Taxed only on Georgia-sourced income
- Non-residents: Taxed only on income generated within Georgia
Residency is determined by:
- Spending more than 183 days in Georgia within a 12-month period
- Having a permanent home in Georgia
- Maintaining primary economic interests in the country
Special provisions include:
- Territorial taxation system
- Minimal taxation for many types of foreign income
- Attractive tax regime for digital nomads and remote workers
Georgian Tax on Investments
Investment income receives specific tax treatment:
- Dividends:
- Generally taxed at 15%
- Potential exemptions for certain reinvested dividends
- Capital Gains:
- Taxed at 20%
- Exemptions for long-term investments
- Interest Income: Typically taxed at 20%
- Rental Income: Taxed at 20%
- Cryptocurrency: Treated as property, with developing regulatory framework
Corporate Taxation
Corporate tax structure is designed to support business growth:
- Corporate Tax Rate: 15%
- Unique Taxation Approach:
- Taxation only on distributed profits
- No tax on retained and reinvested earnings
- Value Added Tax (VAT):
- Standard rate: 18%
- Zero-rated for certain exports and specific services
- No Withholding Tax on Dividends for Residents
- Simplified Tax Regime for Small Businesses
Special Tax Regimes
Georgia offers several specialized tax arrangements:
- Free Industrial Zones: Significant tax benefits
- Digital Nomad Visa Program
- Technology Sector Incentives
- Agricultural Sector Tax Benefits
- Export-Oriented Business Incentives
Regional Comparison
Tax Planning for Georgia
Effective tax management requires a strategic approach:
- Residency Status Optimization
- Investment Strategy Alignment
- Comprehensive Documentation
- Professional Consultation
FAQs
What is the average tax burden in Georgia?
Are there wealth taxes in Georgia?
Do I need to file an annual tax return?
How can I prevent double taxation?
How do I register as a taxpayer?
Conclusion
Georgia's tax system represents a bold and innovative approach to taxation, offering an exceptionally attractive environment for international entrepreneurs, digital nomads, and businesses. The combination of low tax rates, simplified taxation, and forward-thinking policies continues to position Georgia as a unique destination for global economic participants. Navigating the Georgian tax landscape requires an understanding of its distinctive approach, with a focus on simplicity, digital efficiency, and business-friendly policies. As Georgia continues to develop its economic infrastructure, its tax system remains a key tool for attracting international talent and fostering economic growth.
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