Georgia: residency, company and banking
GeorgiaEurope- Small business status, individual entrepreneurs
- 1% of turnover up to GEL 500,000; 3% above
- As of 2026-10-25 · [4]
Overview
Georgia offers three building blocks that can be combined: registration as an individual entrepreneur with small business status for freelancers and digital service providers (consulting and some other activities are excluded), a limited liability company for growing businesses, and residence routes that range from property ownership to the high-net-worth tax residency programme.
Resident individuals are taxed only on Georgian-source income. Personal income tax is a flat 20%, companies pay 15% profit tax only when they distribute profits or make similar payments, and dividends carry 5% withholding tax.
Formation can be done remotely with a notarised and apostilled power of attorney, and in our experience a company with a bank account is ready within a few weeks. Residence is a separate step: a short-term permit through property, an investment permit, or a permit based on work or business.
Redomiciled coordinates; licensed Georgian lawyers and accountants advise on law and tax.
- Personal bank account (our experience)
- About 2 weeksAs of 2026-02-13 · [10]
Georgia company formation: entrepreneur, LLC or Virtual Zone
Georgia offers founders a choice between registering as an individual entrepreneur, often with 1% small business status, and forming a limited liability company taxed only when it distributes profits. As of October 2026, distributed profits are taxed at 15% and IT companies with Virtual Zone status are exempt on exported IT services.
An individual entrepreneur is a person registered to do business in their own name. With small business status, turnover is taxed at 1% up to GEL 500,000 a year and 3% beyond that, instead of 20% on profit. The status is not available for consulting, licensed activities and several professional services, so the classification of your work matters.
A Georgian LLC has no minimum capital and no revenue cap. Under the Estonian-style model, 15% profit tax applies when profits are distributed and on certain non-business expenses, not while profits are retained. Dividends then carry 5% withholding tax.
IT companies can apply for Virtual Zone Person status. Profit from information technology developed by the company and supplied outside Georgia is exempt from profit tax; the status requires real IT activity and evidence of substance.
Formation can be completed remotely with a notarised and apostilled power of attorney, apostilled passport copies and a short description of the business. In our experience an individual entrepreneur with a bank account takes two to three weeks and an LLC three to four weeks.
Accounting, tax and legal advice comes from licensed Georgian professionals; we coordinate setup and banking introductions.
Who it suits
Freelancers and remote service providers
Your turnover stays below GEL 500,000 and your activity is not excluded from small business status.
SaaS and software founders
You develop software for clients abroad and can qualify for Virtual Zone status.
Growing businesses with costs
You reinvest profits and prefer tax on distribution to tax on turnover.
Crypto and Web3 businesses
You need a regulated setup; registration as a virtual asset service provider with the National Bank of Georgia is a separate, document-heavy process.
Requirements
- Required
Legal address in Georgia
Needed for registration with the Public Registry.
- Required
Power of attorney for remote setup
Notarised and apostilled.
- Required
Apostilled passport copies
For founders and directors.
- Required
Bookkeeping and declarations
Small business status holders declare turnover monthly; companies keep full accounts.
- Depends on your case
Virtual Zone application
For IT companies supplying their services abroad.
- Depends on your case
VAT registration
Required once taxable supplies pass the statutory threshold; separate from small business status.
Documents
- Charter or founders' agreementFor an LLC, including shareholdings and management.
- Short company descriptionActivities, customers and expected turnover.
- Passport copies, apostilledFor each founder.
- Power of attorney, notarised and apostilledLets a local representative register on your behalf.
- Bank onboarding fileSource of funds and evidence of the business model.
- LLC profit tax
- 15% on distributed profits and certain non-business costsAs of 2026-10-25 · [5]
- Virtual Zone Person
- Profit from IT supplied outside Georgia exempt from profit taxAs of 2026-10-25 · [7]
- Setup with bank account (our experience)
- 2–3 weeks (individual entrepreneur), 3–4 weeks (LLC)As of 2026-02-13 · [10]
- Virtual Zone approval (our experience)
- About 10 business daysAs of 2026-02-13 · [10]
Timeline
- 1Choose the vehicleIndividual entrepreneur, LLC, or LLC with Virtual Zone status.
- 2Prepare remote documentsPower of attorney and apostilled passport copies.
- 3RegistrationFiled with the Public Registry through a local representative.
- 4Tax status applicationsSmall business status or Virtual Zone status; in our experience Virtual Zone approval takes about 10 business days.
- 5Bank accountOpened with a Georgian bank after its due diligence.
Tax notes
- Small business status: 1% of turnover up to GEL 500,000 a year and 3% above; turnover, not profit, is the base.
- LLC: 15% profit tax on distributed profits and certain non-business costs; retained profits are not taxed until distributed.
- Dividends paid by Georgian companies carry 5% withholding tax.
- Virtual Zone: profits from IT supplied outside Georgia are exempt from profit tax; other income is taxed normally.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- Georgian banks onboard LLCs and entrepreneurs with a clear activity; a strict source-of-funds review applies.
- Crypto-related companies need regulatory clarity before banks engage.
Questions
How does the 1% tax in Georgia work?
Individual entrepreneurs with small business status pay 1% of turnover up to GEL 500,000 a year, rising to 3% above that. Expenses are not deducted, and certain activities, including consulting, are excluded from the status.
What tax does a Georgian LLC pay?
Profit tax of 15% applies only when profits are distributed or spent on certain non-business items. Retained profits are not taxed, and dividends carry 5% withholding tax.
What is Georgia's Virtual Zone status?
A status for IT companies. Profit from information technology the company develops and supplies outside Georgia is exempt from profit tax. Approval requires genuine IT activity and, in our experience, takes about 10 business days.
Can I open a Georgian company remotely?
Yes. With a notarised and apostilled power of attorney, apostilled passport copies and a short business description, registration and bank onboarding can usually be handled without travelling, subject to the bank's due diligence.
Do I need Georgian residency to own a Georgian company?
No. Non-residents can own an LLC or register as an individual entrepreneur. Residency matters if you want to live in Georgia or claim Georgian tax residency.
Georgia residency and tax residency
Georgian residency covers two separate things: a residence permit that lets you live in Georgia, and tax residency, which follows a 183-day test or a high-net-worth route. As of October 2026, owning property worth over USD 150,000 qualifies for a short-term residence permit.
The Public Service Development Agency issues residence permits through the Public Service Halls. The short-term permit for property owners requires non-agricultural property in Georgia with a market value above USD 150,000, set by a certified assessor of an accredited body. Spouses and children can apply on the same basis, and the permit continues only while you own the property.
Larger investors can use the investment residence permit, and permits based on work or business activity are also available.
Tax residency is separate from the permit. The standard test is 183 days in Georgia in any continuous 12-month period. High-net-worth individuals can instead be granted tax residency by the Minister of Finance without the day count, if they pass a wealth or income test, own property in Georgia worth at least USD 500,000 and hold a residence permit or earn at least GEL 25,000 of Georgian-source income.
High-net-worth status is granted per tax year and has to be renewed with fresh documents, so the Georgian assets must be kept.
Georgian immigration lawyers and tax advisers give the advice; Redomiciled coordinates the steps and introductions.
Who it suits
Digital entrepreneurs with foreign clients
Your income comes from abroad and you want a territorial system for individuals.
Investors with foreign portfolios
Foreign dividends and gains fall outside Georgian tax for residents.
High-net-worth individuals
You pass the wealth or income test and can hold USD 500,000 of property in Georgia.
Property buyers
You plan to buy in Tbilisi or Batumi and want residence linked to the purchase.
Requirements
- Required
Lawful stay in Georgia when applying
Applicants submit the document that evidences their lawful stay.
- Required
Qualifying ground
Property above the threshold, an investment, employment or business activity.
- Required
Certified market valuation
For property-based permits, by an assessor of an accredited body.
- Required
Address registration
Permit holders register their place of residence after receiving the card.
- Depends on your case
High-net-worth tax residency application
Filed with the Revenue Service for each tax year.
- Depends on your case
Georgian bank account
Helpful for evidencing ties; subject to the bank's due diligence.
Documents
- Application form and passport copySubmitted through a Public Service Hall or online.
- Proof of lawful stayVisa-free entry record, visa or other permit.
- Title document for the propertyRegistered in the Public Registry.
- Valuation reportBy a certified assessor of an accredited body.
- Colour photoA 3×4 photo in electronic form.
- High-net-worth evidenceProof of global assets or income, of the Georgian property and of the Georgian link.
- Permit review time
- 30, 20 or 10 daysAs of 2026-10-25 · [3]
- Standard tax residency test
- 183 days in any continuous 12-month periodAs of 2026-10-25 · [8]
- High-net-worth wealth or income test
- Assets above GEL 3,000,000, or income above GEL 200,000 in each of the last 3 yearsAs of 2026-10-25 · [2]
- High-net-worth Georgian asset requirement
- Property in Georgia worth at least USD 500,000As of 2026-10-25 · [2]
- High-net-worth Georgian link
- Residence permit, or at least GEL 25,000 of Georgian-source income in the prior yearAs of 2026-10-25 · [2]
- High-net-worth status validity
- 1 tax year, renewed on applicationAs of 2026-10-25 · [9]
- High-net-worth certificate (our experience)
- About 2 monthsAs of 2026-02-25 · [11]
Timeline
- 1Choose the groundProperty, investment, work or business permit; decide whether tax residency is needed as well.
- 2Acquire and value the propertyRegistration in the Public Registry and a certified valuation.
- 3File the permit applicationAt a Public Service Hall or online; a decision within 30, 20 or 10 calendar days.
- 4Residence card and address registrationCollect the card and register where you live.
- 5High-net-worth tax residency, if relevantApply to the Revenue Service; in our experience the certificate takes about two months.
Tax notes
- Resident individuals are exempt from tax on income that does not have a Georgian source.
- Georgian-source income is taxed at a flat 20%, and dividends paid by Georgian companies carry 5% withholding tax.
- The high-net-worth route removes the day-count requirement but not the need to defend your position in your former country, which applies its own rules and treaty tie-breakers.
- Georgian residency does not stop the automatic exchange of financial account information, nor citizenship-based taxation such as that of the United States.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- A residence permit and a local address make personal accounts at Georgian banks straightforward to apply for; approval follows due diligence.
- International banks may still ask for proof of tax residency, which the high-net-worth certificate or a 183-day stay provides.
Questions
How much property do I need to buy for Georgian residency?
For a short-term residence permit, non-agricultural property in Georgia with a certified market value above USD 150,000. The value comes from an accredited assessor, not the purchase price, and spouses and children can apply alongside you.
Can I become a Georgian tax resident without living there 183 days?
Yes, through the high-net-worth route: assets above GEL 3 million or income above GEL 200,000 in each of the last three years, Georgian property worth at least USD 500,000, and a residence permit or GEL 25,000 of Georgian-source income.
How long does a Georgian residence permit take?
The Public Service Development Agency decides within 30, 20 or 10 calendar days. Property registration, valuation and document preparation come on top of that.
Does a Georgian residence permit make me tax resident?
No. The permit is an immigration status. Tax residency follows the 183-day test or a separate high-net-worth application to the Revenue Service, renewed each tax year.
Is Georgian high-net-worth tax residency renewed every year?
Yes. Status is granted per tax year, and each renewal needs fresh documents showing you still meet the wealth or income test, the Georgian property requirement and the Georgian link.
Banking in our network
We do not publish institution names: the right partner depends on your profile, and each institution keeps its own view on who it will serve.
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Banking partners
- Georgian banks run strict source-of-funds checks and nationality-based screening. Personal and business accounts are possible for non-residents, subject to each institution's due diligence.
- In our experience a personal account can often be arranged within about two weeks once the documents are in order.
- Our Georgian network covers private and multi-currency banking; the banking assessment shows whether it fits your profile.
Questions
Does Georgia tax foreign income?
Not for individuals. Resident individuals are exempt from tax on income without a Georgian source, such as foreign dividends, salaries from foreign employers or foreign rental income. Georgian-source income is taxed, generally at 20%, and dividends from Georgian companies carry 5%.
Can foreigners get residency in Georgia through property?
Yes. Owners of non-agricultural property with a certified market value above USD 150,000 can apply for a short-term residence permit, which continues while they own the property. Spouses and children can apply on the same basis.
Is the 1% tax available to everyone?
No. Small business status is for individual entrepreneurs, not companies, and excludes activities such as consulting, licensed activities and several professional services. Above GEL 500,000 of annual turnover the rate rises to 3%.
Videos
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Sources
- 1.Order No. 60 of the Minister of Finance of Georgia (2023) on granting residency to high-net-worth individuals (Legislative Herald of Georgia), retrieved 2026-10-25
- 2.BGI Legal: Law Brief, March 2023 (summary of the high-net-worth residency rule), retrieved 2026-10-25
- 3.Public Service Development Agency: Residence permits, retrieved 2026-10-25
- 4.PwC Worldwide Tax Summaries: Georgia, taxes on personal income, retrieved 2026-10-25
- 5.PwC Worldwide Tax Summaries: Georgia, taxes on corporate income, retrieved 2026-10-25
- 6.PwC Worldwide Tax Summaries: Georgia, corporate withholding taxes, retrieved 2026-10-25
- 7.PwC Worldwide Tax Summaries: Georgia, tax credits and incentives, retrieved 2026-10-25
- 8.OECD: Georgia, tax residency rules for individuals (Tax Code, Article 34), retrieved 2026-10-25
- 9.MM Law: Tax residency in Georgia (high-net-worth procedure), retrieved 2026-10-25
- 10.Redomiciled case experience: Georgian company and residency setups (internal), retrieved 2026-10-25
- 11.Redomiciled case experience: Georgian high-net-worth tax residency (internal), retrieved 2026-10-25
Reviewed by the Redomiciled team on .
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