Banking & Finance
How to Pay 0% to 1% Tax in Georgia

Georgia’s tax system is widely known for its business-friendly approach. This article provides insights into how you can lower your tax payments in this country, ranging from 0% to 1%. 

Whether you want to explore investment opportunities or add diversity to your financial portfolio, knowing Georgia’s tax system is crucial to capitalize on global ventures.

The article delves into the intricacies of Georgia’s tax regulations and discusses various methods to minimize tax liabilities. By gaining this knowledge, you can make informed financial decisions and maximize the benefits from investing in Georgia.

To embark on a financial optimization journey in Georgia, visit NOMOS Law Firm Georgia. We are a team of experts that can guide you through the process and ensure a seamless transition to a more tax-efficient future.

4 Practical Steps to Minimize Tax Obligations in Georgia for High Net Worth Individuals

4 Practical Steps to Minimize Tax Obligations in Georgia for High Net Worth Individuals

Without a doubt, Georgia appeals to high net worth individuals seeking to reduce their tax payments, and here are four steps for achieving this objective:

Step 1: Obtain Tax Residency

To qualify for tax residency status in Georgia, you have two options. 

Firstly, you can spend a minimum of 183 days within the country during a calendar year.

Alternatively, you can qualify as a high net worth individual (HNWI) and meet one of two criteria: owning assets exceeding GEL 3 million ($1.2 million), or earning an annual income exceeding GEL 200,000 ($79,860) for the previous three years. 

Additionally, you must either have a residence permit or citizenship in Georgia or earn at least GEL 25,000 ($9,982) from sources within Georgia in the year you apply.

New changes also require you to own a property in Georgia valued at the USD equivalent of $500,000.

Once you become a tax resident, you’ll only be taxed on income earned within the country under Georgia’s territorial tax system.

Step 2: Take Advantage of Low Tax Exemptions

In Georgia, for certain types of business activities, individuals can acquire “small business” status and be eligible to pay a reduced personal income tax rate of just 1%. Additionally income from agricultural activities is taxed at a reduced rate of 1%. 

It’s also important to note that personal income tax has a flat rate of 20% and corporate tax is 0% for reinvested profits and 5% for distributed profits.

Step 3: Consider Investing in Georgia

Investing in Georgia is a wise way to lower your tax obligations while also generating income.

The country presents diverse investment opportunities such as real estate, manufacturing, and agriculture. Moreover, Georgia has a highly skilled and educated workforce, which appeals to foreign investors.

Step 4: Seek Expert Advice

Reducing tax payments in Georgia can be challenging, so it’s crucial to seek professional advice. A tax consultant or a legal expert specializing in Georgian tax law can guide you through the process and suggest effective strategies to minimize your tax obligations. So if you do have questions, contact us to ensure you get the right advice. 

Georgia’s tax system offers high net worth individuals ample opportunities to decrease their tax liability. By gaining tax residency, taking advantage of tax exemptions, investing in the country, and consulting with professionals, you can effectively reduce your tax payments and relish the benefits of this vibrant and stunning nation.


In Closing

High net worth individuals seeking to optimize their financial portfolios can achieve the goal of paying 0% to 1% tax in Georgia.

By taking the practical steps outlined in the previous section and seeking professional advice, you can optimize your financial portfolio and minimize tax obligations in Georgia. 

To achieve this, NOMOS can guide you through every step of the process, ensuring a seamless transition to a more tax-efficient future.

NOMOS Law Firm Georgia provides guidance in investing in real estate, manufacturing, or agriculture, ensuring a seamless transition to a more tax-efficient future.

To achieve financial goals, contact us today and learn more about how we can help minimize tax obligations in Georgia. With our support and guidance, you can take advantage of the investment opportunities offered by this vibrant and dynamic country. Don’t wait, take action today.

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Lika Tsintsabadze

Founder of NOMOS Law Firm/Business Lawyer/Attorney at law