Banking & Finance
Tax Optimization in Georgia – A Low-Tax European Country

Tax optimization is the process of legally reducing the amount of taxes an individual or business is obligated to pay. Entrepreneurs considering moving to Georgia or obtaining Georgian citizenship have a number of tax optimization strategies available to them, with a focus on legally reducing taxes.

Georgia is not a tax-free country. However, Georgia offers low tax rates and a straightforward tax system that is extremely lucrative for foreign investors, entrepreneurs, and digital nomads.

How To Legally Reduce Your Taxes In Eastern Europe’s Hidden Gem – Georgia

Georgia offers several ways to minimize your taxes. Let’s discuss some of them below:

Investing In Georgian Real Estate

One option is to invest in real estate in Georgia. This can be done by purchasing a property in the country and renting it out or using it as a primary residence. Georgia has a relatively low property tax rate (up to 1%), making it one of the best Eastern European real estate markets to invest in. Investing in Georgian real estate can be an excellent way for entrepreneurs to reduce their tax burden legally.

Setting Up A Business In Georgia

Entrepreneurs may also consider forming a company in Georgia. Georgian tax rates are relatively low compared to other countries in the region. At 15%, its corporate tax rate is no different. 

Entrepreneurs can incorporate a business in Georgia and then conduct business operations through that company. Doing so can lower the overall tax burden for the business and may also provide other benefits, such as increased flexibility and reduced regulatory compliance costs. 

Additionally, entrepreneurs can take advantage of various tax incentives and exemptions offered by the Georgian government for specific industries and investments.

Taking Advantage Of Georgian Tax Treaties

You can also structure business operations to take advantage of tax treaties between Georgia and other countries. Georgia has agreements with many countries that allow businesses to avoid double taxation on income earned in one country and repatriated to another. 

Entrepreneurs should consult with a tax professional or international tax lawyer familiar with Georgian tax law to determine the best way to structure their business operations to take advantage of these treaties. That’s where we come in. Reach out to NOMOS today, and we’ll help you figure out your taxes and business in Georgia.

Acquiring A Georgian Digital Nomad Visa

Another popular tax optimization strategy for entrepreneurs is to become a digital nomad, which means working remotely and residing in different countries for extended periods. 

This allows entrepreneurs to take advantage of lower tax rates in Georgia and other benefits while still earning income from their businesses. However, it is essential to note that becoming a digital nomad can be complex, and tax laws vary from country to country. Hence, it is necessary to consult with a team of tax professionals or international tax lawyers, like NOMOS, to ensure compliance with all relevant tax laws.

Acquiring Georgian Citizenship

Acquiring Georgian citizenship can be an excellent way to lower your taxes legally. However, entrepreneurs should also be aware of the tax implications of obtaining Georgian citizenship. Depending on the country of origin, dual citizens may be subject to taxes on their worldwide income, regardless of where they live or conduct business. NOMOS is here to advise and help you. 

The Bottomline

In summary, entrepreneurs moving to Georgia or obtaining Georgian citizenship have several tax optimization strategies available to them, such as investing in real estate, taking advantage of Georgian tax treaties, forming a company in Georgia, and taking advantage of various tax incentives and exemptions offered by the Georgian government, all while reducing taxes legally. Additionally, becoming a digital nomad can be a viable strategy for entrepreneurs to optimize their taxes. Reach out to NOMOS today and let us determine the best strategy for your situation.

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Lika Tsintsabadze

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