Georgia uses a territorial system, so genuinely foreign-source income isn't taxed locally. The catch is that income isn't "foreign-source" just because the client is — what matters is where the work is performed.
For retirees and passive-income earners, the Georgian tax bill is effectively zero. Foreign pensions, dividends, interest and foreign rent fall outside Georgian tax.
If you work while physically in Georgia, that income is Georgian-source — even when the client is abroad. The efficient way to handle it is Small Business Status: 1% on turnover up to GEL 500,000. Micro Business Status is 0% up to GEL 30,000. The standard personal rate is 20%.
Companies use the Estonian model — 0% on reinvested profit, 15% on distribution. IT firms serving foreign clients can reach 0% via Virtual Zone. Whatever Georgia charges, your home country sets its own rules — getting both sides right is the whole game.
Georgia here means the country in the South Caucasus, not the US state. For most retirees and passive-income earners, the Georgian tax bill is effectively zero. But Georgia's territorial system governs only what Georgia taxes — it says nothing about your home country. Getting both sides right is the difference between a well-structured international life and an unexpected bill.
Georgia taxes only income generated within Georgia. Income from outside — foreign pensions, foreign investment portfolios, foreign employment income, dividends from foreign companies — is not taxed in Georgia.
You become a Georgian tax resident by spending 183 or more days in Georgia within any 12-month period. As in Nicaragua, becoming a tax resident does not trigger worldwide taxation — even as a resident, your genuinely foreign-source income falls outside Georgian tax jurisdiction.
Here the territorial principle gets misread. Georgian sourcing turns on where the work is performed, not where the employer or client sits. If you are physically in Tbilisi providing services to a US employer or European clients, that income is generally treated as Georgian-source, because the economic activity happens in Georgia. It is only foreign-source — and therefore untaxed — when the work itself is performed while you are physically outside Georgia.
| Tax | Rate |
|---|---|
| Personal income tax | 20% flat, on Georgia-source income |
| Corporate income tax | 15%, on distributed profit only — 0% on retained/reinvested (Estonian model) |
| VAT | 18% on most goods and services |
| Interest (individuals) | 5% withholding |
| Dividends (individuals) | 5% — but generally not charged again on profit already taxed at the 15% corporate level (see below) |
| Rental income (individuals) | 5% on gross from residential lets to individuals; 20% on net from commercial / business tenants |
Georgia's headline attraction for freelancers and solo operators is Small Business Status (SBS), available to an Individual Entrepreneur. It is open to non-residents — you do not need Georgian citizenship or residency to register.
For qualifying IT and technology companies that deliver services to foreign clients, Georgia offers Virtual Zone Person Status — one of the most competitive tech incentives in the region.
Eligibility: a Georgian-registered legal entity (an LLC, not an Individual Entrepreneur) providing IT or technology services, with genuine local substance and revenue from clients located outside Georgia. The status is granted by the Ministry of Finance's Financial Analytical Service. Note that because a Virtual Zone company pays 0% corporate tax, the separate 5% dividend tax does apply when profits are distributed to shareholders — so the effective tax on distributed Virtual Zone profit is about 5%.
Georgia adopted an Estonian-style corporate income tax in 2017. Retained and reinvested profits are not taxed. Tax arises only when profit is distributed: the company pays 15% on the distribution. Because the tax is levied once, at the company level, dividends paid out of already-taxed profit are generally not taxed again in an individual shareholder's hands — so the effective rate on distributed profit is about 15%, not 15% plus a further charge.
The separate 5% dividend tax becomes relevant where the distributing company itself paid 0% corporate tax — most notably a Virtual Zone company, whose distributed profit therefore bears roughly 5%. For owners who reinvest rather than distribute, the effective rate on retained profit is zero. "Deemed distributions" (certain non-business expenses or below-market related-party transactions) can also trigger the 15% — a common compliance trap worth an accountant's eye.
Annual property tax is low and income-linked: it ranges from 0.05% to 1% of market value, and — importantly — there is no property tax at all where household annual income is below GEL 40,000. Above GEL 100,000 of household income the rate sits at roughly 0.8%–1%. Land is taxed separately and is not tied to income.
Rental income from Georgian property is Georgia-source regardless of where the owner lives. The rate depends on the tenant: a residential let to an individual is taxed at a flat 5% on gross rent, with no deductions — the simplest and most common case for expat landlords. Renting to a business or organisation is taxed at 20% on net, where legitimate expenses (management, maintenance, loan interest, property tax) can be deducted. A local accountant should handle the annual filing.
No transfer tax, no stamp duty. Combined with low legal fees and fast registration (NAPR typically completes in 1–4 business days), Georgia's transaction-cost structure is among the most efficient in the region.
Capital gains on property. For individuals, a residential property sold within two years of purchase is taxed at 5% on the gain; held for more than two years, the gain is fully exempt (0%) — and that exemption applies to any qualifying residential property, not only a main home. Commercial property and land are taxed at 20%. A June 2026 Ministry of Finance ruling (Public Decision No. 175) clarified that simply owning several homes, how many you own, or how long you hold them does not by itself make selling them a taxable business activity — but operating as a property-development business does change the treatment, removing these personal reliefs. Confirm the treatment of a specific sale with a tax advisor.
This section is as important as everything above. Georgia's territorial system determines what Georgia taxes — not what your home country taxes.
The US taxes citizens on worldwide income regardless of residence. Moving to Georgia does not change your filing obligations:
Canadian tax residency is determined by residential ties, not physical location. Keeping a Canadian home, bank accounts, professional memberships or provincial health coverage may not be enough to sever it — the CRA applies a facts-and-circumstances test. Consult a cross-border advisor before departure; steps to sever ties must be taken and documented, and departure tax may apply on the deemed disposition of assets.
The UK Statutory Residence Test applies. UK tax residency isn't automatically ended by leaving — it depends on UK days, UK ties (accommodation, family, work, prior residency) and the nature of your departure. A UK/international specialist should advise before and after the move.
The ideal advisor knows Georgian tax law thoroughly (rates, sourcing, Small Business Status, Virtual Zone, rental treatment), understands your home country's system (US worldwide taxation, Canadian departure tax, UK SRT), and can advise on the interaction between the two — foreign tax credits, and the best income and entity structure for you. That profile fits neither most local Georgian accountants nor most home-country generalists. These specialists exist; finding one before you move, not after, is the correct sequence.
Generally yes — but at a very low rate. Because the work is performed while you are physically in Georgia, the income is Georgian-source, not foreign-source. The efficient route is Small Business Status, which taxes it at 1% of turnover. Only work performed while you are physically outside Georgia is foreign-source and untaxed. Note that being exempt from the 2026 work permit doesn't change this — permit status and tax status are separate.
Small Business Status is 1% on turnover up to GEL 500,000 a year and is the standard choice for freelancers and consultants. Micro Business Status is 0% on turnover up to GEL 30,000 a year, but you cannot hire employees. Both are open to foreigners without Georgian residency, and certain activities (consulting, legal, medical and others) are excluded from each.
It depends on the tenant. A residential property let to an individual is taxed at a flat 5% on gross rent, with no deductions — the most common case for expat landlords. Renting to a business or organisation is taxed at 20% on net rent, where expenses can be deducted. Rental income from Georgian property is always Georgia-source, regardless of where the owner lives.
For individuals, a residential property sold within two years of purchase is taxed at 5% on the gain. Held for more than two years, the gain is fully exempt — and that applies to any qualifying residential property, not only your main home. Commercial property and land are taxed at 20%. Georgia also has no property transfer tax or stamp duty.
No modern one. Georgia does not list the United States among its tax treaties. The only instrument is the old 1973 US–USSR treaty, which the IRS still references for some former-Soviet states but which has very limited practical value for Georgia. US persons should rely on the Foreign Tax Credit and the Foreign Earned Income Exclusion instead. There is also no US–Georgia totalization agreement for Social Security.
A regime for Georgian IT companies serving foreign clients: 0% corporate income tax and 0% VAT on those exported IT services, with no company-size limit. Revenue from Georgian clients is taxed at the standard 15%. Because the company pays 0% corporate tax, the 5% dividend tax applies when profit is distributed — so the effective tax on distributed Virtual Zone profit is about 5%. It is granted to LLCs (not Individual Entrepreneurs) with genuine local substance.
Figures on this page were verified in June 2026 against the following primary and authoritative sources. Tax rules change — always confirm current figures with a licensed adviser before acting.
Expat Connect Services is a connector to vetted professionals, not a tax adviser. This page is general information and not tax advice.
Every tax professional in our directory has been personally reviewed. Cross-border experience — Georgia plus your home country — is what we look for.
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