Georgia Tax Residency
What are the benefits?
- No personal income tax on money earned outside of Georgia
- No tax on capital gained on crypto
- For persons earning up to 500 000 GEL per year – 1% tax
- Your Georgian accounts aren’t auto-reported abroad under CRS
- Easy access to Georgian banking system
Georgia is one of few countries where you can attain low-tax residency status without having to resort to offshore options. This applies to both businesses and individuals alike. Additionally, Georgia’s territorial tax system means that the government won’t tax you on foreign-sourced income.
Obtaining Georgian Tax Residency gives the following advantages:
- There is no personal income tax on money earned outside of Georgia, including gain. (Please, bear in mind that generally only passive income is deemed foreign sourced**)
- 1% taxes for persons earning up to 500 000 GEL per year (a certificate of “small business entrepreneur” is necessary; the advantage does not apply to all company operations)
- 5% taxes on residential property rentals and/or earnings from resale comparable properties
- Selling residential property as an individual isn’t treated as taxable economic activity, as long as no more than four residential units (with their land) are sold within any 48-month period.
- 0% personal income tax on capital gained via crypto resale (no VAT applies either; Ministry of Finance Public Decision N-201)
- Capital gains are not taxed.
- There are also modest flat tax rates of 20% on Georgian income, 5% on dividends, 18% VAT on domestic transactions, and 1% on a property owned in Georgia.
- Simple access to Georgia’s financial system. Georgian residents receive much the same treatment from banks as Georgian citizens. As a result, you may skip lengthy compliance and KYC procedures.
- Common Reporting Standard (CRS) – Georgia has joined the CRS framework. As a Georgian tax resident, your Georgian accounts are treated as domestic and are not automatically reported to other countries.
- Double Tax Treaties (DTA) – Georgia has 58 double-tax treaties in force, meaning if you are a Georgian tax resident earning income from a treaty country, you should not be taxed twice by the local authorities.
** NOTE: “Foreign source income” does not include any revenue transferred from overseas to Georgia. In the case of services, the rule is the inverse of what the phrase “foreign source” implies. In particular, a service performed by a Georgian resident to a foreigner (i.e., when the service cost is paid from outside Georgia) is typically regarded as a Georgian source. Fortunately, passive income (dividend, pension, interest, capital gain) of Georgian tax residents from overseas, for example, is termed “foreign source income” and is exempt from personal income tax in Georgia.
Obtaining Georgian Tax Residency is Easy
Let us guide you through the process
How to Become Georgian Tax Resident
However, simply being a legal resident of Georgia does not imply that you are a tax resident of the county (or the other way around). There are two ways to gain tax residency in this decent country.
Option 1: Attain tax residency by spending 183 days or more in Georgia within any continuous 12-month period ending in the current tax year. You must repeat this process every year to maintain tax residency status. The days spent as a resident in the previous tax period are not taken into consideration for determining residency in the next tax period.
Please not that you are legally a tax resident if you have lived in the country for 6 months (183 days) in any 12 month period. It is a legal fact, not a question of opinion or inclination (Tax Code Article 34 (2)). Regardless of whether you arrived on a visa or received income from a Georgian or an international source.
Time spent in Georgia as a person (or his/her family members) with diplomatic or consular status, employee (or his/her family members) of international organizations acting in accordance with international treaties, or traveling from one foreign state to another through Georgian territory is not considered for tax residency applications.
It’s important to register with the Revenue Service as soon as possible if you want to stay in Georgia, especially if you’re eligible for a lower tax rate, such as 1% for freelancers and small business individual entrepreneurs (Visit the page – Open an individual entrepreneur in Georgia)
Option 2: If you don’t want to spend 183 days in Georgia, you can become a tax resident through the High Net Worth Individual (HNWI) program. To be considered a HNWI, you must have a proven property worth over GEL 3,000,000 (approximately $1,100,000) or an annual income exceeding GEL 200,000 (approximately $75,000) for each of the three years prior to the application year. (High net worth component)
To obtain Georgian tax residency through the HNWI route you also need a sufficient connection to Georgia, satisfied by any one of the following: holding Georgian residence or citizenship; confirming at least GEL 25,000 (about $9,400) of Georgian-source income each year (e.g. via disclosures as a registered entrepreneur in Georgia); or holding at least $500,000 of assets in Georgia — real estate, company shares, or even funds in a Georgian bank account. (Connection with Georgia component)
Property worth 3,000,000 GEL might be anywhere in the globe and not in Georgia at all. It makes no difference what form of property you have – homes, flats, boats, costly automobiles, or stocks. An independent appraiser must certify the property’s worth.
Avoid Double Taxation
It’s important to note that having a tax resident status in Georgia does not necessarily mean you no longer have tax residency in another country. It is likely that you are still considered a tax resident in another state until you take steps to terminate that status. Simply being an automatic tax resident in Georgia does not automatically cancel your tax residency in your previous country. You may need to take specific actions in certain countries to do so. At the end of each tax year, there is usually a deadline for revoking prior tax residency, so it’s important to check that deadline to avoid being taxed in two countries.
If you have been in Georgia for over 183 days, there is no legal way to cease being a tax resident. Your only option at that point is to determine whether your previous country has a Double Taxation Agreement with Georgia or if you have the right to revoke your tax residency because you were not physically present in your previous country for the required length of time.
If your country doesn’t have a double tax agreement with Georgia, you may need to pay taxes in both countries on all of your income, with no rebate. A solution to this could be to end your tax residency in your previous country before the yearly deadline, making you only a tax resident in Georgia.
Tax Residency – Technical Part
- Obtaining tax residency – The Revenue Service of Georgia submits and reviews papers on the grounds for obtaining the status of a tax resident. The decision to give the status of Georgian tax resident is decided by Georgia’s Minister of Finance. The average period for an application to be considered is 1.5 months.
- Deadlines – After being present in Georgia for 183 days in any rolling 12-month period, you immediately became a tax resident. As a result, you may be required by law to submit an annual tax declaration with the Revenue Service by March 31st of the year following the tax year in which you became a tax resident. As a result, if you reach 183 days in December 2025, you may be required to file a tax return for income generated in 2025 by March 31st, 2026. (The tax year in Georgia runs from January 1st to December 31st). If you reach 183 days in January 2026, you must submit by March 31, 2027.
- Online portal – To file a tax return, you must first register with the revenue office and get a tax ID. Then you must file your declaration online. You can also apply for a tax residence certificate, which you can use as proof in other nations when cancelling your tax residency.
- Fines – There is a penalty for a tax resident who does not file tax declarations by March 31st; if you are late by up to two months, you pay an additional 5% of the amount due, and if you are late by more than two months, you pay a 10% fine on top of the initial tax owed.
Frequently Asked Questions About Georgian Tax Residency
When do you become a tax resident of Georgia?
An individual becomes a Georgian tax resident by spending 183 days or more in the country during a calendar year. The days do not need to be consecutive — the total number of days of presence is counted. Important: days used to qualify for residency in one year cannot be counted again in another tax year.
How many months do you need to live in Georgia to get resident status?
To obtain tax resident status, you need to spend at least 183 days (approximately 6 months) in Georgia during a calendar year. The certificate can be obtained in the same year the 183 days are reached. The same days cannot be used to qualify for residency in two different tax years.
How to get a Georgian tax residency certificate?
The tax residency certificate is issued by the Revenue Service of Georgia (RS.ge). To obtain it, you need to submit an application through your personal account on rs.ge, attaching proof of stay in the country (passport stamps, rental agreement). The certificate is issued within a few business days and is valid for applying double taxation agreements.
Does Georgia tax foreign income?
Georgia applies a territorial taxation principle for individuals. Passive income from foreign sources (interest, dividends, royalties) is not taxed in Georgia. However, business profits are taxed separately and require business registration (IE or company) in Georgia. This distinction is one of the key advantages of Georgian tax residency.
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