Core Taxes
Corporate Income Tax (CIT), 15%. Georgia uses the so-called Estonian model: corporate income tax does not arise when profit is earned. It is triggered only when dividends are distributed or when expenses are treated as undistributed profit. As long as money stays within the company and is reinvested, no tax is paid.
VAT, 18%. VAT registration is mandatory once annual turnover exceeds 100,000 GEL. Below this threshold, registration is voluntary. Exports of goods and services outside Georgia are generally zero-rated.
Personal Income Tax (PIT), 20%. Applies to income of individuals: salaries, professional fees, and IE income under the general regime. Dividends received by an individual from a Georgian company are taxed separately at 5%.
Pension contributions: 2% employee + 2% employer. Contributions are mandatory only for Georgian citizens and permanent residents. Foreigners without permanent resident status are exempt.
Property tax is up to 1% of the market value of the asset per year; the exact rate depends on the municipality and the owner's income.
Special Tax Regimes
Small business status. Individual entrepreneurs with annual turnover up to 500,000 GEL can obtain small business status and pay just 1% on turnover instead of the standard income tax. The status does not extend to certain activity types (legal, medical services, notarial work, and others).
Micro-business. For certain permitted activities, a fixed fee applies regardless of turnover. The list of qualifying activities is limited by law.
Virtual Zone. IT companies exporting software outside Georgia pay 0% corporate income tax and 0% VAT on export revenue. The status is issued by the Georgian Ministry of Finance; the primary requirement is that revenue must come from abroad.
International Company. A special regime for technology and high-tech businesses: 5% corporate income tax, 5% personal income tax for employees, and 0% on dividends. The regime requires a confirmed activity type and regulatory approval.
Tax Residency
An individual is recognized as a Georgian tax resident if they spend 183 days or more in the country within any 12 consecutive months. Tax residents pay PIT on worldwide income; non-residents pay only on income from Georgian sources.
Georgia has double taxation treaties with a number of countries, including Germany, Cyprus, the Netherlands, France, and the UAE. The status of treaties with Russia and Ukraine should be verified with current sources, as their applicability is periodically reviewed.
Key Deadlines
The annual personal income tax declaration for individuals is due by April 1 of the following year. IEs on small business status report monthly by the 15th. Quarterly CIT advance payments are due by the 15th of the first month of the following quarter. All calculations and payments are made through the Revenue Service portal rs.ge.
Do non-residents pay tax on foreign income?
No. Georgian non-residents pay tax only on income from Georgian sources. Foreign income is taxed only for tax residents.
Do I need to register for VAT immediately after opening a company?
No. Registration is mandatory only when annual turnover exceeds 100,000 GEL. Below this threshold, voluntary registration may be worthwhile if you work with VAT-registered counterparties.
Does the Estonian model apply to all companies?
Yes, to all Georgian legal entities (LLC, JSC) on the general regime. Exceptions are companies under special regimes such as Virtual Zone and International Company, where separate rules apply.
Can a foreigner obtain small business status?
Yes. Small business status is available to individual entrepreneurs regardless of citizenship, provided the IE is registered in Georgia and the activity type and turnover requirements are met.
How does Georgia avoid double taxation with other countries?
Through a network of bilateral tax treaties. If a treaty is in force between Georgia and your home country, tax paid in Georgia is credited against your obligations at home. The specific credit mechanism depends on the treaty terms.