Why an IE in Georgia Works So Well for Freelancers

Updated: May 2026

Georgia is one of the best bases in the world for freelancers working with foreign clients: a 1% tax regime, fast remote setup, and easy international banking. Here is what makes it work — and the details that matter.

1. A very low tax — just 1%

With Small Business Status, an IE pays 1% of turnover on annual turnover up to 500,000 GEL (above that, 3% for the rest of the year; a separate Micro Business Status is 0% up to 30,000 GEL). A handful of activities — consulting, legal, medical, financial and a few others — cannot use the 1% regime, so it is worth checking your activity first.

2. Easy, remote registration

You do not have to travel to Georgia. With a legally translated power of attorney and a notarised copy of your passport, a local firm can register your IE and obtain Small Business Status for you, usually within one to two working days. You can also register in person if you prefer.

3. Simple international banking

Georgian banks provide handy multi-currency accounts with SWIFT/SEPA support, although approval is never automatic and varies by nationality. Our bank-account page walks through the details.

4. A residence permit through your IE

An active IE can support a work residence permit. As a rule the business must show annual turnover of at least 50,000 GEL per foreign applicant (evidenced by Revenue Service and bank records). Note this threshold is being moved into a government ordinance under 2026 amendments, so confirm the current figure when you apply.

5. Tax residency is separate from the 1%

Georgian tax residency (183 days in a year, or the HNWI route) means your foreign-source passive income — foreign dividends, interest, rent — is generally not taxed in Georgia. That is separate from the 1%, which applies to the active freelance turnover billed through your Georgian IE. The two can stack, but they are not the same benefit.

How to Register Your IE Remotely

The remote process is straightforward:

Prepare a notarised (and, where required, apostilled) passport copy and a legally translated power of attorney.
We submit the application to the House of Justice (Public Service Hall) on your behalf and receive the IE certificate, usually in 1–2 working days.
We register you with the Revenue Service and obtain Small Business Status (the 1% regime).

Opening a Bank Account

After your IE is registered you will want a bank account. With some banks this can be done online or through a trusted representative; with others a short in-person step is needed. Once open, you get multi-currency details, Visa/Mastercard cards and solid online banking for accepting international payments.

Residence Permit (TRP) Based on Your IE

Freelancers running a genuine business in Georgia can apply for a temporary residence permit (TRP). The usual conditions are:

A registered IE with real, active operations (annual turnover of at least 50,000 GEL per applicant, subject to the 2026 threshold change above)
Financial records showing stable income
Regular, up-to-date tax filings

With a TRP you can live in Georgia legally and renew as your business continues.

Becoming a Georgian Tax Resident

There are two main routes to Georgian tax residency:

Spend at least 183 days in Georgia within a 12-month period; or
Qualify under the High Net Worth Individual (HNWI) scheme.

The HNWI route needs both a wealth/income test and a Georgian connection: (1) verified assets over 3 million GEL, or annual income over 200,000 GEL in each of the last three years; and (2) either a Georgian residence permit/citizenship, or at least 25,000 GEL of Georgian-source income in the relevant year. HNWI status is granted for one year and renewed annually.

Work Permits from 2026

Heads-up for 2026: Georgia’s new labour-migration law (No. 862) brings in a work permit for foreign nationals active in the country. It takes effect on 1 March 2026, with a 1 May 2026 deadline for those already self-employed here, and costs GEL 200 (or GEL 400 expedited). The requirement targets foreigners working with the local Georgian market, so a freelancer billing only foreign clients through a Georgian IE falls outside it; it applies once you take on work for Georgian companies.

Conclusion

For freelancers with foreign clients, a Georgian IE on the 1% regime is one of the simplest and most efficient setups anywhere — especially paired with Georgian tax residency for your foreign passive income. We can register your IE remotely, set up banking and advise on residence and tax residency end to end.

Freelancer thinking about a Georgian IE? We’ll set it up remotely.

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Individual entrepreneurship in Georgia for freelancers