Georgia has gained a reputation as one of the most tax-friendly countries for entrepreneurs, freelancers, and investors. With its low corporate tax rates, no global income tax, and a simplified tax system, Georgia offers significant financial advantages for British citizens looking to reduce their tax burden and optimize business profits.
This guide explains the key tax benefits, business structures, and tax-saving opportunities available to British citizens in Georgia. If you need professional tax or business setup assistance, schedule a consultation here.
Why Georgia is a Tax-Friendly Destination for British Citizens
Georgia’s tax system is structured to attract foreign investment and encourage business growth. Some of the biggest tax advantages for British citizens include:
- No global income tax – British citizens only pay tax on income earned inside Georgia.
- Low corporate tax – Businesses pay zero tax unless they distribute profits, following the Estonian corporate tax model.
- 1% tax for small businesses – Individual entrepreneurs earning up to 500,000 GEL (~£150,000 per year) pay just 1% in taxes.
- No capital gains tax on stocks, crypto, or real estate held for over two years.
- No wealth, inheritance, or gift tax, making Georgia ideal for long-term wealth planning.
- Low VAT (Value Added Tax) at 18%, with exemptions for international businesses.
These benefits make Georgia a top choice for British entrepreneurs, digital nomads, and investors looking for a low-tax, business-friendly environment.
Key Tax Benefits for British Entrepreneurs and Freelancers
No Global Income Tax for Non-Residents
Unlike the UK, where residents are taxed on worldwide income, Georgia only taxes income earned within the country.
- If you operate a business outside Georgia, your foreign income is not taxed in Georgia.
- If you are a digital nomad or freelancer working for international clients, you may qualify for Georgia’s low-tax status.
This means British citizens who move to Georgia can legally reduce their global tax burden.
1% Tax for Individual Entrepreneurs (Best for Freelancers and Small Business Owners)
Georgia offers a Small Business Status for Individual Entrepreneurs (IEs), allowing them to pay only 1% tax on turnover up to 500,000 GEL (~£150,000 per year).
Who Qualifies for the 1% Tax Rate?
- IT professionals and software developers
- Digital marketers, consultants, and copywriters
- E-commerce entrepreneurs and online sellers
- Coaches, course creators, and influencers
- Remote workers with foreign clients
Example: If you are a British digital consultant earning £100,000 annually, your total tax bill in Georgia would be just £1,000 (1%), compared to £30,000+ in the UK.
15% Corporate Tax – Only on Distributed Profits
Georgia follows an Estonian-style corporate tax model, meaning businesses only pay corporate tax when distributing profits.
- Zero corporate tax if profits are reinvested.
- 15% corporate tax only when withdrawing profits.
- 5% dividend tax when transferring money to personal accounts.
This makes Georgia an ideal location for startups, holding companies, and international businesses.
No Capital Gains Tax on Most Assets
Unlike the UK, where capital gains tax can be as high as 20%, Georgia does not tax capital gains on:
- Cryptocurrencies
- Stock market investments
- Real estate (if held for more than two years)
This tax exemption makes Georgia a top destination for traders and investors.
No Wealth, Inheritance, or Gift Taxes
Georgia has no wealth tax, allowing long-term asset accumulation without tax penalties.
- No inheritance tax, making it a great option for family wealth planning.
- No gift tax, allowing easy transfer of assets between family members.
VAT and Business Taxation in Georgia
Georgia’s Value Added Tax (VAT) rate is 18%, but many foreign businesses are VAT-exempt.
- If your business operates outside Georgia, you may qualify for VAT exemptions.
- Exported goods and services are generally VAT-free.
- Businesses earning less than 100,000 GEL per year are not required to register for VAT.
These policies make Georgia an ideal base for UK-based e-commerce, software, and consulting businesses.
How to Legally Optimize Your Taxes in Georgia
Register as an Individual Entrepreneur (IE)
For freelancers and small business owners, the best option is to register as an Individual Entrepreneur (IE) under the 1% tax regime.
- Simple business registration (completed in one day).
- Minimal accounting requirements.
- Eligible for tax residency with long-term benefits.
Open a Georgian Business and Utilize the 15% Tax Model
For larger businesses, registering a Limited Liability Company (LLC) in Georgia allows:
- 0% tax on retained earnings.
- 15% tax only on distributed profits.
- Ability to hire employees and scale operations globally.
Relocate and Become a Georgian Tax Resident
To become a tax resident in Georgia, you must:
- Spend at least 183 days per year in the country, or
- Apply under the High-Net-Worth Individual (HNWI) program, which grants tax residency with proof of financial stability.
Once tax residency is established, you can legally optimize your tax rates and avoid UK global taxation.
How Nomos Georgia Can Help
At Nomos Georgia, we assist British citizens with:
- Business registration and Individual Entrepreneur setup.
- Tax residency applications and compliance.
- Corporate tax structuring for UK businesses moving to Georgia.
Schedule a consultation to explore your tax-saving opportunities in Georgia.
Final Thoughts
Georgia offers unmatched tax benefits for British citizens, including zero global income tax, low corporate tax, and simplified business regulations. Whether you’re a freelancer, entrepreneur, or investor, relocating to Georgia can significantly reduce your tax burden.
By setting up the right business structure and ensuring legal compliance, you can take full advantage of Georgia’s low-tax policies while growing your wealth.
Contact us today for expert tax and business assistance in Georgia.
