Small Business Status (1% Tax) — Georgia
One of Georgia's main advantages — small business status with just 1% tax on turnover. Available to individual entrepreneurs with annual turnover up to 500,000 lari (~$165,000). When limit exceeded, rate increases to 3%. No complex reports, simple system. Ideal for freelancers, consultants, digital nomads.
Small Business Status (1% Tax)
One of Georgia's main advantages — small business status with just 1% tax on turnover. Available to individual entrepreneurs with annual turnover up to 500,000 lari (~$165,000). When limit exceeded, rate increases to 3%. No complex reports, simple system. Ideal for freelancers, consultants, digital nomads.
Requirements
Annual turnover must not exceed 500,000 lari (~$165,000). When exceeded, rate increases to 3%. Very generous limit for most freelancers.
Small business status available only to individual entrepreneurs without employees. Must work independently.
Registration as individual entrepreneur online through tax service portal. Takes 1-2 days. Minimal bureaucracy.
Suitable for IT services, consulting, design, marketing, education and most services. Limitations only for specific licensed activities.
Benefits
Pay just 1% of gross income without deducting expenses. Simpler calculation than 20% on profit. With $100,000 income, tax only $1,000.
No need for complex accounting. Declaration filed once a year by March 31. No need to hire accountant for most cases.
Small entrepreneurs exempt from VAT if turnover less than 100,000 lari. No need to collect and pay 18% VAT. Simplifies work.
Can work remotely from any country, serve foreign clients. Ideal for digital nomads and remote workers.
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Territorial Tax System
Georgia applies territorial tax principle for individuals — this is the country's key advantage. Tax residents pay 20% tax only on Georgian-source income. Foreign income (dividends, interest, cryptocurrency, salary from foreign companies) is not taxed. Makes Georgia ideal for digital nomads and international investors.
03Cryptocurrency: Tax Haven (0% Tax)
Georgia is one of the world's best crypto havens. Individual income from crypto trading completely tax-exempt. Ministry of Finance officially confirmed: cryptocurrency not tied to geographical location, so not considered Georgian income. Applies to buying, selling, exchanging, holding. Crypto mining also developed thanks to cheap electricity.
04Tax Calculation Example
Consider two scenarios: employee and freelancer with small business status. Georgia has no social contributions, so effective tax burden is lower than in most European countries. Simple and transparent system.
05Digital Nomad Visa
Georgia offers 'Remotely from Georgia' program for remote workers, plus visa-free access for citizens of 95+ countries for 365 days. Low cost of living, visa-free regime, territorial taxation make Georgia top destination for digital nomads. Tbilisi and Batumi are community hubs.
06Estonian Corporate Tax Model
Since 2017 Georgia applies Estonian corporate tax model: undistributed company profits taxed at 0%, tax of 15% charged only upon dividend distribution. This stimulates reinvestment and business growth. One of most competitive systems in region.