Georgia
Top Income Tax
20%
Marginal rate
Corporate Tax
15%
Standard rate
VAT / Sales Tax
18%
Standard rate
Capital Gains
20%
Standard rate
Overview
Georgia is one of the most tax-friendly countries for freelancers and small businesses with a 1% turnover tax and 0% corporate tax on IT exports. The country offers visa-free entry for many nationalities, very low cost of living, and the Estonian-style corporate tax model. Tbilisi has a growing digital nomad scene.
Income Tax Brackets
| Income Range (GEL) | Tax Rate |
|---|---|
| 0+ | 20% |
Flat 20% rate. Small business status: 1% on turnover up to 500k GEL.
Corporate Tax
Standard Rate
15%
15% but only on distributed profits (Estonian-style). Undistributed profits are tax-free.
VAT / Sales Tax
Standard Rate
18%
18% standard rate. Threshold for registration: 100k GEL annual turnover.
Capital Gains Tax
Standard Rate
20%
Taxed as regular income. Exempt for Georgian-source securities listed on Georgian exchange.
Social Security Contributions
Employee
2%
Employer
2%
Self-Employed
4%
Pension contributions: 2% each employer/employee. Government adds 2% for lower earners.
Special Tax Regimes
Small Business Status
1% tax on gross revenue for businesses with turnover under 500k GEL (~USD 190k).
Eligibility: Individual entrepreneur with annual turnover under 500k GEL.
Virtual Zone Person
0% corporate tax on IT services income from foreign sources.
Eligibility: IT companies exporting services. Must apply for Virtual Zone certificate.
Individual Entrepreneur
Flat 1% on turnover for qualifying small businesses. 3% for micro business.
Eligibility: Various thresholds apply based on business type.
Digital Nomad Visa
Remotely from Georgia program. Visa-free stay for many nationalities up to 1 year. No minimum income requirement for many passport holders.
Pros & Cons
Pros
- 1% small business tax
- 0% IT export tax (Virtual Zone)
- 0% tax on undistributed profits
- Very low cost of living
- Visa-free for many nationalities
- Low social security (2%)
Cons
- 20% flat income tax for employees
- Developing infrastructure
- Limited domestic market
- Language barrier
- Geopolitical risks
Living Indicators
Cost of Living Index
Very affordable
Quality of Life Index
Average
Best For
Data Sources
Tax rate data for Georgia is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Georgia government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.