Georgia Tax Residency Rules
Georgia is the only page in this guide where most visitors are trying to establish residency rather than avoid it. A flat 20% income tax, rolling 183-day rule, 1% Small Business turnover tax, and Virtual Zone 0% for IT companies — combined with 365-day visa-free access for ~100 nationalities — make Georgia the simplest and lowest-cost European-adjacent residency option for digital nomads and freelancers.
| Legal basis | Article 1, Georgian Tax Code |
| Residency threshold | 183 days in any continuous 12-month period (rolling — not calendar year) |
| Income tax | Flat 20% on employment/self-employment · 5% on dividends, capital gains, interest |
| Complexity | Simple — straightforward day-count, flat rate |
| Tax year | Jan 1 – Dec 31 (filing), but 183-day window is rolling |
| Special statuses | Virtual Zone (IT companies, 0% on foreign revenue) · Small Business (1% turnover, self-employed) · High Earner (20% flat) |
| Visa-free access | 365 days for ~100 nationalities (EU, US, UK, Canada, Australia, and more) |
| Schengen | Not a Schengen member — days in Georgia do not count toward the Schengen 90/180 limit |
| Official source | Georgian Revenue Service ↗ |
How Georgian tax residency works
Georgia's residency rule is one of the simplest in Europe: 183 days of physical presence in any continuous 12-month period. No family-based triggers, no economic interests test, no registration requirements — just days.
Two important details distinguish the Georgian rule from simpler calendar-year jurisdictions:
- Rolling 12-month window. Like Portugal (but unlike Spain or Italy), Georgia uses a rolling 12-month period — not a strict calendar year. The Revenue Service can select any consecutive 12-month window to check whether 183 days of presence falls within it. A person who spends October–June in Georgia (9 months) may trigger residency based on a window that crosses calendar years even if neither calendar year individually shows 183 days. The practical implication: partial-year planning must account for rolling windows, not just January–December.
- Day of arrival + departure. Both the day of arrival and the day of departure count as full days of presence. A one-week trip arriving Sunday and departing Saturday counts as 7 days.
The goal here is usually to trigger residency, not avoid it. Unlike most countries in this guide, people researching Georgian tax residency are typically looking to establish it — for the low tax rates, simple rules, and banking access. The challenge is not avoiding Georgian residency; it is ensuring that establishing Georgian residency genuinely terminates residency in a higher-tax home country.
Tax rates for Georgian residents
Employment income, self-employment income, and professional fee income for Georgian tax residents is taxed at a flat 20%. No progressivity. A modest personal deduction applies (GEL 3,000 per year as a basic exemption in some cases). For context, a freelancer earning the equivalent of €80,000 annually pays 20% — no bracket jumps, no surcharges.
Dividend income, capital gains from the sale of securities, and interest income from Georgian bank accounts are taxed at a flat 5% — for both residents and, in some cases, non-residents on Georgian-source income. Foreign-source capital gains are technically taxable at 20% for Georgian tax residents, but practical reporting and enforcement for foreign portfolio accounts is limited by Georgia's non-AEOI status with most Western tax authorities (as of 2026).
Self-employed individuals and sole traders with annual turnover below GEL 500,000 (approximately USD 185,000) can register as a Small Business and pay a 1% turnover tax — instead of the 20% income tax — on all revenue from services to non-Georgian clients. Services to Georgian entities are taxed at 3%. No deduction of business expenses under the Small Business status — the 1% applies to gross turnover. For low-margin service businesses (consultants, developers, designers, writers), the 1% rate on gross revenue is extraordinarily low.
A Georgian-registered company that qualifies as a Virtual Zone Person pays 0% Georgian corporate income tax on revenue from the supply of IT services to clients outside Georgia. Georgian-source revenue is taxed at 15%. Dividends distributed from Virtual Zone profits (from the 0% pool) are exempt from Georgian withholding tax. The Virtual Zone is a corporate status — the company must be a Georgian legal entity (LLC / Ltd) registered in Georgia. It is not available to individuals filing as sole traders or under Small Business status.
Typical use: a software developer or IT entrepreneur forms a Georgian LLC, obtains Virtual Zone status, bills foreign clients through the Georgian company, pays 0% Georgian corporate tax on those revenues, and distributes profits as dividends at 0% Georgian withholding tax (from the untaxed Virtual Zone pool).
Georgian Tax Residency Certificate (TRC)
The Georgian Revenue Service issues a Tax Residency Certificate to individuals who qualify as Georgian tax residents. This document is the primary tool for claiming Georgia as your country of tax residence when dealing with foreign tax authorities, banks, or counterparties.
A TRC is typically required when:
- Claiming treaty benefits under the Georgia–[country] double tax treaty to reduce withholding taxes on Georgian-source income
- Demonstrating Georgian tax residency to your home country's tax authority as evidence that you have changed tax residence
- Meeting CRS (Common Reporting Standard) self-certification requirements for Georgian bank accounts or foreign financial institutions
To obtain a TRC, the individual must be able to demonstrate 183+ days of presence in Georgia in the relevant 12-month period. Georgian bank statements, rental agreements, utility bills, and entry/exit records from the border agency (Border Police) are typically used as supporting evidence.
A Georgian TRC does not automatically terminate home-country residency. Presenting a Georgian TRC to HMRC, the Belastingdienst, or the Agenzia delle Entrate does not end UK, Dutch, or Italian tax residency if substantive ties remain. The TRC is a starting point in the conversation with foreign tax authorities — not a conclusive answer. Home-country ties (family, home, professional activity) must be genuinely severed.
Why days in Georgia do not count toward Schengen
Georgia is not a Schengen member state. Time spent in Georgia does not count toward the Schengen 90/180-day limit — a significant advantage for nomads who want to use Georgia as a base for European travel.
Typical pattern: spend November through April in Tbilisi (6 months, establishing Georgian tax residency), then spend May through October traveling in the Schengen area (up to 90 days in any 180-day window). This pattern can be maintained year after year without hitting Schengen limits, provided the 90-day Schengen cap is respected.
Georgia's 365-day visa-free period for most nationalities means this pattern requires no immigration paperwork in Georgia during the first year — or ongoing years if the person leaves and re-enters (most nationalities can re-enter immediately after a brief border crossing).
Track your Georgian days precisely
The rolling 12-month window means calendar-year tracking is not enough. Log your Georgian days in Elcano.
Frequently asked questions
What is the tax residency threshold in Georgia?
183 or more days in any continuous 12-month period. This is a rolling window — not a fixed calendar year. Both the day of arrival and departure count. The Revenue Service can select any 12-month window that crosses calendar years to find 183+ days of presence.
What is Georgia's income tax rate?
Flat 20% on employment and self-employment income. 5% on dividends, capital gains, and interest. Small Business status: 1% on turnover (for sub-GEL 500,000 revenue, services to non-Georgian clients). Virtual Zone companies: 0% corporate income tax on foreign-source IT services revenue.
Do I need a visa to stay in Georgia?
Citizens of the EU, US, UK, Canada, Australia, Japan, and approximately 100 other nationalities can stay visa-free for up to 365 days. This is one of the most generous visa-free periods globally. After 365 days, a brief departure and re-entry resets the clock for many nationalities, or a Georgian residence permit may be obtained.
Does Georgian tax residency cancel my home-country tax obligations?
Not automatically. If your home country uses domicile-based or ties-based residency rules (UK, Netherlands, Germany, France), establishing Georgian tax residency may not break home-country obligations unless you genuinely sever ties — vacate your home, relocate your family, close bank accounts, terminate business activities. A Georgian TRC supports your position but is not conclusive for foreign tax authorities.
What is Virtual Zone status and how do I get it?
Virtual Zone is a corporate status for Georgian-registered IT companies. The company must be incorporated as a Georgian legal entity, apply to the Revenue Service for Virtual Zone certification, and demonstrate that it supplies IT services to clients outside Georgia. Once certified, the company pays 0% corporate income tax on qualifying foreign-source IT revenue. Dividends from the untaxed pool are distributed at 0% withholding tax.
Do days in Georgia count toward the Schengen 90-day limit?
No. Georgia is not a Schengen member. Days spent in Georgia have no impact on your Schengen 90/180-day calculation. This makes Georgia a useful base for nomads who want to travel frequently in the EU while maintaining tax residency outside the Schengen area.
Is Georgia's 183-day rule calendar-year or rolling?
Rolling — any continuous 12-month period. This is the same structure as Portugal and stricter than Spain (which resets on January 1). Someone spending October through April in Georgia (7 months) triggers the rolling window even though no single calendar year shows 183 Georgian days. Track by rolling window, not by year-end totals.
Related guides and tools
Planning Georgian tax residency?
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This page is for informational purposes only and does not constitute tax or legal advice. Georgian tax law, Virtual Zone rules, and small business thresholds are set by the Georgian Tax Code and administrative regulations, which may change. Georgian tax residency does not automatically terminate home-country tax obligations — verify exit rules with your home-country tax authority. Consult a qualified Georgian tax adviser and your home-country tax adviser before establishing Georgian tax residency.