Georgia expat tax: the 1% small business status and territorial tax

Georgia taxes freelancers on 1% of their turnover. That's the small business status, and it's open to most individual entrepreneurs earning up to GEL 500,000 a year (about US$192,000).

This guide covers Georgian personal tax for people moving to or living in Georgia in 2026. The tax year is the calendar year. Dollar figures use US$1 = GEL 2.60, the National Bank of Georgia's official rate on 8 October 2026.

The key question is simple. Is your income from work you do in Georgia, or does it come from outside Georgia? Georgia doesn't tax a resident's foreign-source income, but work you physically do in Georgia is Georgian-source, even for a foreign client.

What's changed: since 1 March 2026, foreigners without a permanent residence permit need a "right to work" from the State Employment Support Agency before they take a job with a Georgian employer or work for themselves in Georgia. Work for non-resident clients is outside the rule, and employees already registered on the labour migration database on 1 March 2026 have until 1 January 2027 to get the right to work and a residence permit. For small business status, a Ministry of Finance order of February 2026 means the status now starts on the day you apply.

📋 Georgia tax at a glance for 2026

The 1% small business status

Why do so many freelancers register in Georgia? Small business status replaces the normal 20% tax on profit with 1% of turnover.

Image 1 — small business status: 1% of turnover, not 20% of profit

You register as an individual entrepreneur, then apply to the Revenue Service for the status. Your Georgian-source business income is then taxed like this:

• 1% of turnover, as long as your turnover for the calendar year stays within GEL 500,000.

• 3% from the start of the month in which you pass GEL 500,000, until the end of that year.

• If you pass GEL 500,000 in each of two calendar years, you lose the status from the start of the following year.

You file a return and pay the tax every month, by the 15th of the following month, even for a month with no income.

A salary is never covered, so employment income stays at 20%. Dividends, interest, royalties and rent are also taxed under the normal rules.

Some activities can't use it at all. The Government's list of excluded activities includes consulting, legal and notary work, medical and architectural services, audit, currency exchange, gambling, staffing and anything that needs a licence. IT and software work isn't on the list. "Consulting" isn't defined there, so ask the Revenue Service first if your work is mainly advice.

There's also micro business status, for individuals working alone with no employees and earning up to GEL 30,000 a year (about US$11,500). It carries no income tax, but the same professional activities are excluded.

👉 Tax Code of Georgia: micro and small business status (Articles 84 to 95)

👉 Revenue Service: Ministry of Finance Order No. 38 of 5 February 2026 on special tax regimes (in Georgian)

👉 Government Ordinance No. 415: activities excluded from micro and small business status (in Georgian)

What counts as foreign income

Georgia exempts any income of a resident that isn't Georgian-source. The definition of Georgian-source income is wider than most people expect.

• Employment in Georgia is Georgian-source. If you sit in Tbilisi working for an employer abroad, your salary is taxable in Georgia at 20%.

• Services actually carried out in Georgia are Georgian-source. Where the client is, and where you're paid, doesn't matter.

• Dividends from a Georgian company, interest paid by a Georgian resident and pensions paid by a Georgian resident are Georgian-source.

What's left as foreign income? Foreign dividends, interest and gains, rent from property abroad, a foreign pension, and work you physically do outside Georgia.

So a freelancer working from Georgia for foreign clients has Georgian-source income, taxed at 1% with the status or 20% without it. And if your foreign employer doesn't withhold Georgian tax, you report and pay it yourself.

👉 Tax Code of Georgia: exempt income (Article 82) and Georgian-source income (Article 104)

When you become tax resident in Georgia

You're tax resident for the whole tax year if you spend 183 days or more in Georgia in any continuous 12-month period ending in that year. The 12 months don't have to match the calendar year.

• Any part of a day in Georgia counts as a day.

• Under the Code's wording, time you spend outside Georgia specifically for medical treatment, leisure, a business trip or education also counts.

• The Code leaves out time you spend in Georgia for medical treatment or leisure, and time in transit between two other countries. Ask the Revenue Service how it applies this before you rely on it.

There's a second route. Georgia can grant tax residence to a "high net worth individual", defined as someone with proven property worth more than GEL 3 million (about US$1.15 million), or annual income above GEL 200,000 for each of the previous three years. The Minister of Finance order that set out how to apply was repealed in June 2023, so check with the Revenue Service that the route is still open before relying on it.

How you stop being resident

Residence is decided separately for each tax year. Days that made you resident for one year aren't counted again for the next, so you stop being resident in a year where you don't meet the 183-day test. The Tax Code has no exit tax for individuals. Non-residents are still taxed on Georgian-source income.

👉 Tax Code of Georgia: resident and non-resident individuals (Article 34)

Income tax rates for 2026

Georgia has one flat rate and a short list of lower rates. There's no general tax-free allowance.

Georgia income tax rates for individuals in 2026

Source: Tax Code of Georgia, Articles 81, 82, 86, 90, 130 and 131.

Worked example

• You work for a Georgian company in 2026 on a salary of GEL 260,000 (about US$100k).

• Without Georgian citizenship or a permanent residence permit, you're outside the pension scheme. You pay 20%, which is GEL 52,000.

• In the pension scheme, you pay 2% (GEL 5,200) and then 20% tax on the rest (GEL 50,960). That's GEL 56,160, or 21.6%.

A freelancer with small business status and the same GEL 260,000 in turnover pays 1%, which is GEL 2,600.

👉 Tax Code of Georgia: income tax rates (Article 81) and tax on dividends and interest (Articles 130 and 131)

Freelancing in Georgia

The status applies from the day you apply, so income earned earlier in the year is taxed at 20%. Three things catch people out.

• The 1% is on turnover, not profit. You can't deduct expenses, and a loss can't be carried forward.

• VAT is separate. The status doesn't remove any duty to register for VAT.

• Your other country may still tax you if you remain tax resident there.

Since 1 March 2026 a self-employed foreigner without a permanent residence permit also needs a right to work before trading in Georgia. The law doesn't apply where you provide services to a non-resident and the work relates to that person's activities outside Georgia, which covers many freelancers with only foreign clients. Working without it when you need it carries a fine of GEL 2,000.

👉 Law of Georgia on Labour Migration: the right to work for foreigners

Crypto, investments and pensions

How is crypto taxed in Georgia? For individuals, it isn't. A Ministry of Finance public ruling from June 2019 says an individual's income from selling crypto isn't Georgian-source income, so it's exempt from income tax.

Investments follow the source rule.

• Foreign dividends, interest and gains: not taxed for residents.

• Georgian dividends and interest: 5%, withheld, with nothing more to pay. Interest from a licensed bank in Georgia isn't taxed.

• Gains on Georgian assets: exempt if you've owned the asset for more than two years and didn't use it in a business. Sell sooner and the gain is normally taxed at 20%.

A foreign pension isn't Georgian-source income, so residents don't pay Georgian tax on it. Georgia has no separate inheritance tax and no wealth tax, and gifts and inheritances from close family are exempt.

There is an annual property tax on real estate, cars, yachts and aircraft you own. It's exempt (apart from land) if your family's income is GEL 40,000 or less, 0.05% to 0.2% of market value up to GEL 100,000 of income, and 0.8% to 1% above that. Tax-exempt income counts towards these limits, so foreign income can push you into the higher band.

👉 Ministry of Finance Public Decision No. 201: taxation of crypto-assets (in Georgian)

👉 Tax Code of Georgia: property tax rates and exemptions (Articles 202 and 206)

Social security

Georgia has no social security tax. The only payroll contribution is the funded pension scheme.

• Employees pay 2% of salary and the employer adds 2%.

• The State adds 2% on the first GEL 24,000 a year and 1% up to GEL 60,000.

• Self-employed people can join voluntarily at 4%.

Are foreign citizens covered? Only if they hold a permanent residence permit. The law applies to Georgian citizens, and to foreign citizens and stateless people with permanent residence permits. If you later lose that permit, ask the Pension Agency what happens to your pension pot.

👉 Law of Georgia on Funded Pension: who is covered and contribution rates

Double tax treaties

Does Georgia have double tax treaties? Yes. The Ministry of Finance lists treaties with 58 countries and territories, including the UK, Germany, France, the Netherlands, Spain, Italy, Ireland, Switzerland, Poland, the UAE, Singapore, India, China, Japan and Israel.

The United States, Canada and Australia aren't on the list. Without a treaty there's no tie-breaker for dual residence, so make sure you've properly left your old tax system.

👉 Ministry of Finance of Georgia: double taxation avoidance treaties

Staying long term: no digital nomad visa

Georgia doesn't have a digital nomad visa. Many people don't need one.

Citizens of the countries on the Government's visa-free list can enter and stay for one full year without a visa. The list as published in English has more than 90 entries, including the UK, the United States, Canada, Australia and the EU countries. It has been amended several times, most recently in February 2026, so check your nationality before you travel. Since 1 January 2026, tourists entering Georgia also need health and accident insurance covering their whole stay, with cover of at least GEL 30,000.

Staying isn't the same as being allowed to work. Since 1 March 2026:

• A foreigner without a permanent residence permit needs a right to work to be employed by a Georgian employer or to trade as self-employed in Georgia. The decision takes up to 30 days and the fee is capped at GEL 500.

• You also need a D1 immigration visa or a residence permit. If you're already in Georgia, you apply for the permit within 10 days of getting the right to work.

• The rules don't apply to work for a non-resident that relates to its activities outside Georgia, or to holders of an investment residence permit, which needs an investment or property worth at least US$300,000.

There's also a three-year IT residence permit for individual entrepreneurs with small business status who work in IT, have two years' experience and earn at least US$25,000 a year. None of these routes changes your tax position.

👉 Government Ordinance No. 255: countries whose citizens can enter Georgia without a visa

👉 Ministry of Foreign Affairs of Georgia: mandatory insurance for tourists from 1 January 2026

👉 Ministry of Foreign Affairs of Georgia: new rules for employed and self-employed foreigners from 1 March 2026

👉 Law of Georgia on the Legal Status of Aliens and Stateless Persons: visas and residence permits

Who is Georgia good for?

How does Georgia compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules.

☑️ Who is Georgia good for? Tax ratings for expats in 2026

Filing and deadlines

What you file depends on how your income is taxed.

• Employees of Georgian employers: tax is withheld from your salary.

• Income not taxed at source, such as a salary from a foreign employer for work done in Georgia: an annual return by 1 April. The return for 2026 is due by 1 April 2027.

• Small business status: a monthly return and payment by the 15th of the following month.

• Selling an asset at a taxable gain: a return by the 15th of the month after the sale.

• Property tax: a return by 1 November and payment by 15 November.

👉 Tax Code of Georgia: filing tax returns (Articles 93 and 153) and property tax deadlines (Article 205)

Frequently asked questions

Does Georgia tax foreign income?

No. A Georgian tax resident's foreign-source income is exempt from income tax. But work you physically do in Georgia counts as Georgian-source income, even if your client or employer is abroad, so it's taxed in Georgia.

What is the 1% tax in Georgia?

It's small business status. An individual entrepreneur with the status pays 1% of turnover on Georgian-source business income up to GEL 500,000 a year, and 3% above that. Consulting, legal, medical and audit work are among the excluded activities.

When do you become tax resident in Georgia?

You're resident for the whole tax year if you spend 183 days or more in Georgia in any continuous 12-month period ending in that year. Any part of a day counts. Residence is tested again each tax year.

Is crypto taxed in Georgia?

Not for individuals. A Ministry of Finance public ruling from 2019 treats an individual's income from selling crypto as not Georgian-source, so it's exempt from income tax.

Do foreigners need a work permit in Georgia in 2026?

Since 1 March 2026, a foreigner without a permanent residence permit needs a right to work to be employed by a Georgian employer or to be self-employed in Georgia. Work for non-resident clients that relates to their activities outside Georgia is outside the rule.

How many double tax treaties does Georgia have?

The Ministry of Finance lists treaties with 58 countries and territories, including the UK, Germany, France, the Netherlands, Spain, Italy, the UAE, Singapore, India, China and Japan. The United States, Canada and Australia aren't on the list.