Georgia has established itself as one of the most tax-friendly jurisdictions in the world, attracting entrepreneurs, digital nomads, and international businesses. This guide provides a comprehensive overview of the Georgian tax system and how you can benefit from it.
Personal Income Tax
Georgia operates a flat personal income tax rate of 20%. However, there are several ways to reduce this burden:
Small Business Status
If you qualify for small business status (annual turnover up to 500,000 GEL), you may be eligible for a reduced rate of just 1% on gross revenue.
Individual Entrepreneur
Individual entrepreneurs can opt for a simplified taxation regime with rates as low as 1-3% depending on their business activities.
Corporate Taxation
Georgia's corporate tax system is unique and highly favorable:
- 15% corporate income tax - but only on distributed profits
- 0% on reinvested profits - profits kept in the company are not taxed
- This "Estonian model" encourages business reinvestment and growth
VAT (Value Added Tax)
The standard VAT rate in Georgia is 18%. Registration is mandatory when annual taxable turnover exceeds 100,000 GEL. However, many services and goods are exempt or zero-rated, including:
- Export of goods and services
- International transportation
- Financial services
- Medical services
Special Economic Zones
Georgia offers several Free Industrial Zones (FIZ) with exceptional benefits:
- 0% corporate income tax
- 0% VAT on transactions within the zone
- 0% import duties
- 0% property tax
Why Choose Georgia?
- Simplicity - The tax code is straightforward and easy to understand
- Low rates - Among the lowest in Europe and globally
- Easy compliance - Modern online systems for tax filing
- Stability - Tax rates have remained stable for years
- Treaties - Double taxation treaties with 56 countries
Getting Started
Navigating the Georgian tax system, while simpler than many countries, still requires expert guidance to maximize benefits and ensure compliance. At TaxWizzards, we help businesses and individuals structure their operations optimally from day one.
Ready to explore the opportunities? Contact us for a free consultation.