Tax Benefits
- Exemption from the 15% corporate income tax on profits from IT services sold outside Georgia.
- 5% tax on dividends when distributing profits.
Requirements
- The company is registered in Georgia (only Georgian legal entities may apply, through the Ministry of Finance).
- A physical or legal presence in Georgia.
- Operations in IT or software development.
- Products and services sold exclusively outside Georgian jurisdiction.
How to Obtain Virtual Zone Status
The first step is registering a company with the National Agency of the Public Registry of Georgia (NAPR) — a two-business-day process.
Who Virtual Zone Is For
- Companies developing software for foreign clients.
- IT outsourcing businesses with a client base outside Georgia.
- SaaS products targeting international markets.
If your company operates both inside and outside Georgia, or belongs to the maritime sector, consider International Company status instead.
FAQ
How does Virtual Zone differ from Small Business Status (1%)?
Small Business Status applies to sole traders (IE) and taxes 1% of gross turnover regardless of where services are delivered. Virtual Zone applies to LLCs and JSCs and exempts corporate income from tax, provided services are sold outside Georgia.
Can I work with Georgian clients under Virtual Zone status?
No. Virtual Zone status requires products and services to be sold exclusively outside Georgia. Income from Georgian clients is taxed at standard rates.