Three IE Regimes in Georgia
- Micro Business — full tax exemption for annual turnover up to 30,000 GEL; limited range of permitted activities.
- Fixed Taxpayer — a fixed tax amount based on the type of activity and location.
- Small Business — 1% tax on turnover up to 500,000 GEL per year; broad range of permitted activities.
IE Taxes in Georgia: Small Business Status
- 1% of gross turnover — while annual revenue stays below 500,000 GEL (~165,000 USD).
- 3% of the excess amount — if turnover reaches 500,000–1,000,000 GEL in the following two years.
- Small Business Status is revoked if income exceeds 500,000 GEL for more than two consecutive years.
VAT at 18%: registration becomes mandatory when turnover exceeds 100,000 GEL — only for services provided within Georgia. Electronic services to non-resident legal entities and services rendered outside Georgian jurisdiction are VAT-exempt.
Benefits of Registering an IE in Georgia
- Fast registration: 2–4 business days in person, 7 days remotely.
- Minimal document requirements.
- 1% tax for a wide range of business activities.
- Work from anywhere in the world — no Georgian residency or citizenship required.
- Simple reporting: monthly declaration via the IRS portal.
- Option to obtain a Georgian residence permit through IE status.
- No restrictions on hiring employees.
- Remote registration by power of attorney is available.
Service Packages
IE Registration with Bank Account: 4 business days
- Accompanying to the Ministry of Justice.
- Payment of all governmental fees.
- Permanent legal address.
- Extract from the registry in English.
- Filling the IRS taxpayers portal.
- Obtaining Small Business Status.
- Assistance with opening a bank account.
IE Registration without Bank Account: 2 business days
- Accompanying to the Ministry of Justice.
- Payment of all governmental fees.
- Permanent legal address.
- Extract from the registry in English.
- Filling the IRS taxpayers portal.
- Obtaining Small Business Status.
Remote IE Registration with Bank Account: 7 business days
- Providing all templates of powers of attorney.
- Translation and notarization of your documents.
- Submission of an application to the Ministry of Justice.
- Payment of all governmental fees.
- Permanent legal address.
- Certificate in English language.
- Filling the IRS taxpayers portal.
- Obtaining Small Business Status.
- Assistance with opening a bank account.
Remote IE Registration without Bank Account: 7 business days
- Providing all templates of powers of attorney.
- Translation and notarization of your documents.
- Submission of an application to the Ministry of Justice.
- Payment of all governmental fees.
- Permanent legal address.
- Certificate in English language.
FAQ
Can I be officially employed if I have IE with Small Business Status?
With IE and Small Business Status, you can only receive payment under service agreements. The services in the agreement must match the activity code assigned to your IE. To avoid scrutiny from Revenue Service inspectors, it is advisable to have several clients and multiple income sources. Being employed as an individual in parallel is not prohibited — in that case, your salary income is subject to 20% withholding tax.
How many types of activities can I choose?
Up to two main activity codes (preferably related), plus a separate line for a third code — for example, in fields such as science, art, or writing.
When does the 18% VAT obligation arise?
If services are provided within Georgia — when turnover exceeds 100,000 GEL. Electronic services to non-resident legal entities and services rendered outside Georgian jurisdiction are VAT-exempt.
Do I have to pay income tax?
An IE with Small Business Status does not pay 20% withholding tax. Instead, the applicable rate is 1% of gross turnover.
Does IE registration make me a Georgian tax resident?
No. Taxpayer status and tax residency are separate. IE registration gives you a taxpayer identification number, but tax residency requires either residing in Georgia for more than 183 days per year, or qualifying under the HNWI programme (assets over 3,000,000 GEL, or annual income over 200,000 GEL for each of the last three years plus Georgian-source income of at least 25,000 GEL).
Do I have to stay in Georgia permanently?
No. IE with Small Business Status allows you to work from any country. It is advisable, however, to cross the Georgian border at least twice a year to maintain a connection with the jurisdiction.
What is the turnover limit and what happens when it is exceeded?
- Up to 500,000 GEL per year: 1% tax.
- 500,000–1,000,000 GEL in the following two years: 3% on the excess amount.
- If income exceeded 500,000 GEL for more than two consecutive years: Small Business Status is revoked.
A standard IE (without Small Business Status) has no turnover cap.
How often do I file a declaration?
An IE with Small Business Status files a monthly declaration — from the 1st to the 15th of each month via the IRS portal. A zero declaration must be filed even when there are no transactions. A standard IE files once a year.
Can I close my IE remotely?
Yes. IE liquidation takes up to 10 business days and can be done in person or by power of attorney.