Georgia offers stunning mountain landscapes, vibrant city life in Tbilisi, a warm and welcoming local culture, and one of the most expat-friendly visa policies in the world.
In this guide, we’ll walk you through everything you need to know about relocating to Georgia from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Georgia follows a territorial taxation model. You will pay tax on local sourced incomes only, irrespective of your resident status.
if you spend more than 182 days in Georgia during any 12 month period.
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Providing that your annual turnover is no more than 500,000 GEL, your self-employed profits will be taxed at a flat rate of 1%. If annual turnover exceeds 500,000 GEL, a flat rate of 3% will be applied for two years, after which, you will not be eligible to use the small business regime.Georgia can be a very tax efficient place to live in and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
1% on business profits.
Until turnover is more than 500,000 GEL.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in the Georgia, you may find that the source country, as a starting point, continues to tax the income.
Double taxation agreements may remove the source country’s taxing right and thus, enable you to receive incomes tax free globally.
At present, Georgia has 58 double taxation agreements signed.
