Why Foreigners Choose a Georgian IE
Updated: May 2026
Citizenship and residency are no barrier in Georgia: a foreign national can own and run an individual entrepreneur (IE) on the same terms as a local, and can do it without moving. For many expats and remote workers that pairing — a 1% tax rate plus a fully remote setup — is exactly why they pick Georgia.
The 1% That Makes It Worthwhile
The draw is Small Business Status: an IE’s turnover is taxed at 1% up to 500,000 GEL a year, rising to 3% on anything above that until the year resets, and the status lapses only if you breach the ceiling two years in a row. Very small operations can take Micro Business Status (0% up to 30,000 GEL) instead. One recent change to note: from February 2025, construction work billed to Georgian companies no longer falls under the 1%.
Billing Clients Abroad: the VAT Angle
Most foreign-client work carries no Georgian VAT. Under the place-of-supply rules, a service delivered to a business overseas counts as supplied where that client sits — outside Georgia — so it falls outside the Georgian VAT net rather than being “exempt.” You would only register for VAT (18%) once taxable, mainly domestic, sales top 100,000 GEL in any 12-month stretch.
Residency and the 2026 Work Permit
Registering and running an IE does not require a Georgian residence permit, and many owners never relocate. From 1 March 2026, Georgia’s labour-migration law (No. 862) introduces a work permit — but it is aimed at foreigners working with the local Georgian market. If your IE serves only clients abroad you fall outside it; the requirement comes into play once you take on work for Georgian companies.
Registering as a Non-Resident
The mechanics are light. You file an application with a passport copy at the House of Justice, and the certificate is usually ready within a day or two. If you are abroad, a power of attorney with a certified translation lets a representative register the IE and apply for Small Business Status on your behalf.
| For foreigners — at a glance | Figure |
|---|---|
| Small Business Status | 1% up to 500,000 GEL (3% above) |
| Micro Business Status | 0% up to 30,000 GEL |
| VAT registration | at 100,000 GEL (rolling 12 months); 18% |
| Residence permit via your IE | business turnover from ~50,000 GEL |
Conclusion
For an entrepreneur whose clients are mostly abroad, a Georgian IE is hard to beat: 1% on turnover, no VAT on exported services, no need to relocate, and a registration you can finish remotely in days. We handle the whole process for non-residents end to end.
Foreign entrepreneur? We’ll register your Georgian IE remotely.
See also: register an IE in Georgia, IE taxes, bank account, residence permit.