In the evolving world of international business and remote work, Georgia has gained traction as a prime location for tax residency and offshore-style business registration. With its territorial tax system, low tax rates, streamlined registration process, and business-friendly legal environment, Georgia presents a compelling option for freelancers, digital nomads, startups, and international investors.
Why Georgia Attracts Global Entrepreneurs
Georgia is not a classic offshore tax haven—but that’s exactly its advantage. It offers many of the same benefits (low taxes, privacy, flexibility) without the reputational risks associated with traditional offshore jurisdictions. Georgia is transparent, internationally compliant, and offers legitimate structures for individuals and businesses to optimize taxes while operating legally and efficiently.
Tax Residency in Georgia: A Strategic Advantage
Georgia offers a territorial taxation system, meaning only Georgian-sourced income is taxed. Foreign income, such as revenue from international clients or businesses based abroad, is exempt from personal income tax for Georgian tax residents. This makes Georgia one of the most attractive jurisdictions in the world for location-independent professionals and global entrepreneurs.
You can become a tax resident in Georgia in one of two ways:
- By physically spending 183 days or more in the country during a 12-month period.
- By qualifying under the High Net Worth Individual (HNWI) scheme, which requires proof of personal wealth exceeding GEL 3 million (approx. $1.1 million USD) or annual income exceeding GEL 200,000 over the past three years.
Once residency is established, individuals can request a Certificate of Tax Residency, which can be used for double tax treaties and compliance in other jurisdictions.
Business Setup in Georgia: Offshore Benefits Without the Risk
Georgia is becoming a go-to destination for international business setup due to its Estonian-style corporate tax system. This model allows companies to operate efficiently while paying 0% corporate income tax on retained earnings. Corporate tax of 15% only applies when profits are distributed as dividends, encouraging reinvestment and growth.
Foreigners can register and fully own Georgian companies with no local partner required. There are no restrictions on the nationality of directors or shareholders, and the registration process is fast—often completed within one to two business days. Remote registration is also available through a Power of Attorney, making Georgia especially attractive to non-residents.
Simplified Tax Regimes for Freelancers and Remote Workers
One of the standout advantages for solo entrepreneurs in Georgia is the Individual Entrepreneur (IE) regime with small business status, which allows individuals to pay only 1% tax on turnover up to GEL 500,000 (~$175,000 USD annually). This is among the most competitive tax regimes globally for freelancers, consultants, and small service-based businesses.
For those who qualify, the Micro Business Status offers a 0% tax rate, though with stricter requirements and lower income limits.
Importantly, Georgia does not apply Controlled Foreign Corporation (CFC) rules, meaning that Georgian tax residents are not taxed on profits retained in foreign companies, making it ideal for international entrepreneurs managing structures across jurisdictions.
International Company Status for IT and BPO Firms
Georgia has introduced a unique International Company status for IT and business process outsourcing (BPO) firms. Companies that qualify enjoy:
- 5% corporate income tax
- 5% personal income tax on employee salaries
- 0% tax on dividends
To qualify, a Georgian company must provide services to non-resident clients and meet substance requirements (e.g., local office and staff). This makes Georgia especially attractive for tech companies, software developers, and remote-first businesses.
Banking and Financial Environment
Georgia’s banking system is stable, modern, and crypto-friendly. Foreigners can open multi-currency personal or business accounts with minimal documentation. Although Georgia is not a CRS (Common Reporting Standard) participant, its banks operate under growing global compliance standards while still offering a higher degree of financial privacy compared to Western banks.
Major banks like Bank of Georgia and TBC Bank offer premium accounts, remote onboarding (in some cases), and concierge-level services for entrepreneurs, including international clients.
Double Taxation Treaties and International Recognition
Georgia has signed over 55 double taxation treaties, including agreements with countries such as Germany, France, the UK, China, and many CIS countries. This provides additional legal clarity and reduces the risk of double taxation on foreign income.
Because Georgia is not a blacklisted jurisdiction, it offers the legitimacy of an onshore country with many of the benefits of offshore jurisdictions—without regulatory concerns.
Remote Setup: No Need to Visit Georgia
With proper legal assistance, foreign nationals can obtain tax residency, register a company, open a bank account, and access Georgian legal systems entirely remotely via Power of Attorney. This is especially beneficial for individuals from countries with travel restrictions or those seeking to operate from abroad without relocating permanently.
At Nomos Georgia, we provide full-service remote assistance for business registration, bank account setup, and tax residency applications.
Final Thoughts: Is Georgia the Right Choice?
If you’re seeking a legally sound, low-tax jurisdiction with ease of setup, modern infrastructure, and a high degree of flexibility, Georgia is an excellent choice. It offers nearly all the benefits of an offshore setup—without the risks, the stigma, or regulatory barriers. For tax-conscious entrepreneurs, global consultants, digital nomads, and investors, Georgia offers a compelling mix of low taxes, business-friendly policies, legal stability, and international access.
Nomos Georgia is here to assist you every step of the way. From remote company registration to obtaining tax residency or legal advice on cross-border structuring, our team is equipped to guide you through Georgia’s unique legal and tax landscape.
Contact us to get started.
