Tax Calculation Example — Georgia
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.
Tax 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.
Annual Salary: 36,000 lari (~$12,000)
Unlike European countries, Georgia has no mandatory social contributions. Effective tax rate is exactly 20% without hidden deductions. For a freelancer with small business status at same income 36,000 lari, tax would be only 360 lari (1%), net income 35,640 lari.
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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.
02Small 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.
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.
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.