International Tax Planning
Georgia

A 1% tax regime built for independent entrepreneurs.

Georgia offers one of the most accessible low-tax structures available to qualifying freelancers, consultants and online entrepreneurs willing to make the country a genuine base.

Discuss Georgia
Jurisdiction Georgia
Georgia flag
Small Business Status 1% Revenue-based tax for qualifying entrepreneurs
Region Europe / Asia
Tax Residence 183 Days
Structure Individual Entrepreneur
Currency GEL
Private Client Advisory

Tax residence, business activity and international income considered as one coordinated structure.

GEORGIA
Georgia at a Glance

Extremely low tax. Without an expensive structure.

01 Small Business Tax 1%

Qualifying Individual Entrepreneurs can access a highly preferential revenue-based tax regime.

02 Tax Residence 183 Days

The standard route requires Georgia to become a meaningful physical base during the year.

03 Business Structure Individual Entrepreneur

The regime is commonly used through Georgia's simplified sole-entrepreneur framework.

04 Best Fit High Margin

Particularly relevant for consultants, freelancers and service businesses with limited operating expenses.

Why Georgia

Low tax without offshore complexity.

Georgia occupies a different position from more expensive international tax hubs. For qualifying entrepreneurs, the attraction is simplicity rather than sophisticated structuring.

Establish yourself locally, operate under the appropriate regime and pay a very low tax rate without needing multiple companies across several jurisdictions.

01
Exceptional Tax Efficiency

The Small Business Status can reduce the tax burden on qualifying entrepreneurial revenue to 1%.

02
Low Structural Cost

The setup can be materially simpler and less expensive than maintaining a traditional offshore structure.

03
Accessible Banking

Georgia has established local banks offering multicurrency accounts and services for international clients.

Small Business Status

The 1% regime explained.

The headline rate is exceptionally attractive, but the regime is designed for a particular type of entrepreneur and the tax is calculated on revenue rather than profit.

01 Registration Individual Entrepreneur

The individual registers locally as an entrepreneur before applying for the relevant Small Business Status.

02 Qualifying Rate 1% of Revenue

The preferential rate applies to qualifying turnover rather than the entrepreneur's net profit.

03 Threshold Approx. GEL 500,000

The preferential regime operates within a defined annual turnover framework.

Revenue vs. Profit

The 1% rate rewards high-margin businesses.

Georgia's Small Business tax is based on turnover. That distinction determines whether the regime is exceptionally efficient or simply inappropriate for the business.

Strong Fit Consulting Business
Revenue $100,000
High Margin
Illustrative 1% Tax $1,000
Weaker Fit Low-Margin Business
Revenue $100,000
High Expenses !
Tax Basis Revenue
Tax Position

Active income and foreign income are different.

The 1% Small Business regime is particularly relevant to qualifying active entrepreneurial income earned while operating from Georgia.

Foreign-source passive income may receive different treatment, but foreign companies managed or operated from Georgia require careful analysis.

Illustrative Tax Framework
Active Business Qualifying Small Business Revenue
1%
Foreign Properly Foreign-Source Income
Potentially 0%
Foreign Company Managed from Georgia
Review Required
Crypto Qualifying Individual Gains
Preferential
Exact treatment depends on activities, income source, eligibility, company management and individual circumstances.
Tax Residence

Low tax comes with a real presence requirement.

Georgia is not designed as a paper-residency solution. For the standard tax-residence route, the individual generally needs to make Georgia a substantial physical base.

183 Days
Standard Tax Residence

More commitment. More substance.

The physical-presence requirement reduces location flexibility, but it can also create a more straightforward factual residence position than low-presence alternatives.

Banking

Strong local banking for day-to-day operations.

Georgia has a relatively developed local banking sector, including multicurrency accounts that can be useful for internationally active entrepreneurs.

01
Local Banking Bank of Georgia

One of the country's major banking institutions with services used by international residents and entrepreneurs.

02
Local Banking TBC Bank

Another major Georgian banking group offering local and multicurrency banking services.

03
Premium Banking Private Client Options

Higher-tier banking services can provide dedicated relationship management and additional account services.

Who Georgia Suits

Particularly strong for entrepreneurs still building.

01
Consultants

High-margin professionals earning directly from international clients.

02
Freelancers

Location-independent professionals who can genuinely perform their work from Georgia.

03
Online Solopreneurs

Lean digital businesses with high margins and limited operating expenses.

Important Considerations

Exceptional for the right profile. Limited for the wrong one.

01 Revenue-Based Tax

Expenses do not reduce the 1% tax base in the same way they would under a conventional profit-based system.

02 183-Day Presence

Georgia requires considerably more physical commitment than many low-presence international tax jurisdictions.

03 Turnover Limits

Small Business Status operates within defined turnover and eligibility rules that need to be monitored.

04 Foreign Company Management

Running a foreign company entirely from Georgia can create local tax and permanent-establishment considerations.

Why Global One

The 1% rate is only useful if you actually qualify.

We assess the underlying business before recommending Georgia. Revenue, margins, activities, tax residence and how the company is actually operated all matter.

For the right entrepreneur, Georgia can be remarkably simple. For the wrong business model, another jurisdiction may provide a materially stronger long-term structure.

Private Client Advisory

Could your business qualify for Georgia's 1% regime?

We assess your revenue, margins, activities, current tax residence and international structure before determining whether Georgia is the right base.

Apply for a Consultation
Our Approach
01 Eligibility Assessment
02 Tax Structure
03 Relocation Execution
GEORGIA
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