Georgia 1% Individual Entrepreneur Tax Regime vs Georgia Small Business / Individual Entrepreneur Visa
A factual side-by-side comparison of two residency programmes. All figures are drawn from the canonical program pages — follow either link in the table header for sources and the full profile.
Key Differences at a Glance
- ›Georgia Small Business / Individual Entrepreneur Visa leads to citizenship (~10 yrs); Georgia 1% Individual Entrepreneur Tax Regime does not.
Georgia 1% Individual Entrepreneur Tax Regime Georgia · other | Georgia Small Business / Individual Entrepreneur Visa Georgia · entrepreneur | |
|---|---|---|
| Country | Georgia | Georgia |
| Category | Other | Entrepreneur |
| Application Fee | $0 | $50 |
| Minimum Income | — | — |
| Minimum Investment | — | — |
| Processing Time | 1 months | 1 months |
| Family Included | No | No |
| Path to PR | No | Yes — 5 years |
| Path to Citizenship | No | Yes — 10 years |
| Physical Presence | The 1% tax status itself grants no right to remain in Georgia — it is purely a tax registration. Holders must separately rely on Georgia's visa-free entry (up to 365 days for citizens of roughly 95 countries, including the US, UK, EU, Canada, and Australia) or hold a qualifying Georgian residence permit to legally remain in the country long enough to operate the business and, if desired, meet the 183-day threshold that triggers Georgian tax residency. | Georgia allows visa-free stays of up to one year for citizens of approximately 95 countries; registration as an individual entrepreneur gives the right to remain and operate lawfully during that period. Formal long-term residency requires a separate permit. |
| Dual Citizenship | Allowed | Allowed |
| Tax Impact | Individual Entrepreneurs registered for Small Business Status pay a flat 1% tax on gross turnover up to GEL 500,000/year (roughly USD 180,000), with no separate personal income tax on that turnover. Georgia's tax system leans territorial in practice for many types of foreign-sourced income, and the regime is most commonly used by consultants, freelancers, and remote-service providers who invoice foreign clients through a Georgian legal registration. Georgian tax residency (183+ days/year) determines whether an individual's broader worldwide income is in scope at all — the 1% rate itself applies specifically to Georgian-registered IE business turnover regardless of the holder's residency status. | Georgian individual entrepreneurs registered under Small Business Status pay a flat 1% turnover tax on all revenue up to 500,000 GEL per year, with no additional income tax. Georgia's territorial tax system means foreign-source passive income is not subject to Georgian tax for non-residents. |
| Tax Residency Trigger | 183 days/yr | 183 days/yr |
| Worldwide Taxation | Territorial | Territorial |
| Renewal Cost | $0 | $50 |
About Georgia 1% Individual Entrepreneur Tax Regime
Georgia's Individual Entrepreneur (IE) 'Small Business Status' is a tax registration, not a visa or residence permit. It lets a registered individual entrepreneur pay a flat 1% tax on gross annual turnover up to GEL 500,000 (roughly USD 180,000), with registration completed same-day, in person, at Georgia's Public Service Hall and Revenue Service, with no minimum capital and typically no legal representation required. Because it confers no immigration status on its own, it must be paired with a separate legal basis to remain in the country — for most Western nationalities that basis is simply Georgia's generous 365-day visa-free entry, which already covers around 95 countries; others need a qualifying Georgian residence permit. The regime has become one of the most popular low-tax bases in the world for location-independent consultants and freelancers, thanks to the combination of an extremely low flat rate, a same-day registration process, and Tbilisi's low cost of living. It is distinct from Georgia's broader residence-linked business/investor route (which bundles a residence permit with company formation or property investment) — this entry covers the tax registration on its own, as most digital nomads use it.
Full Georgia 1% Individual Entrepreneur Tax Regime profile →About Georgia Small Business / Individual Entrepreneur Visa
Georgia's individual entrepreneur framework allows foreign nationals to register a local business within one day, with no minimum capital requirement, and immediately qualify for the Small Business Status flat 1% turnover tax on revenue up to 500,000 GEL per year. Citizens of around 95 countries can enter Georgia visa-free for up to one year, making it one of the world's most accessible low-tax entrepreneurial bases for freelancers, consultants, and digital business owners. The combination of a territorial tax system, rock-bottom cost of living in Tbilisi, and a vibrant international community has made Georgia a premier destination for location-independent entrepreneurs.
Full Georgia Small Business / Individual Entrepreneur Visa profile →Gotchas to Watch For
Georgia 1% Individual Entrepreneur Tax Regime
- ⚠This is a TAX registration, not an immigration status — it grants no right to enter or remain in Georgia. Most users pair it with Georgia's 365-day visa-free stay rather than a formal residence permit
- ⚠Exceeding GEL 500,000 annual turnover doesn't just raise the rate on the excess — in practice it can trigger loss of Small Business Status for the following period, pushing income back to standard rates; consult a Georgian accountant before scaling revenue near the threshold
- ⚠Georgia's favourable tax treatment does not mean 1% IE holders owe no tax elsewhere — most home countries (especially the US, UK, and EU states) still tax their citizens or tax-residents on worldwide income; the 1% regime reduces Georgian tax exposure only, unless the individual has also become a non-tax-resident of their home country
- ⚠Certain professional activities (some licensed consulting, legal, medical, and financial services) are excluded or only partially eligible for Small Business Status — confirm eligibility of the specific activity with the Revenue Service before registering
- ⚠Georgia's separate VAT registration threshold (GEL 100,000 in trailing 12-month turnover) applies regardless of Small Business Status — many IE holders overlook that crossing it triggers mandatory VAT registration on top of the 1% turnover tax
- ⚠Because the regime doesn't itself confer residency, it does not by itself build toward Georgia's PR or citizenship timelines — a separate residence permit is required for that clock to run
Georgia Small Business / Individual Entrepreneur Visa
- ⚠Georgia does NOT permit dual citizenship for natural-born Georgians taking foreign nationality, but naturalised Georgians may keep original (by special dispensation)
- ⚠Territorial taxation does not fully exempt Georgian tax residents on foreign-source employment income — consult Revenue Service for specifics
- ⚠Many visa-free-entry nationalities (including US, UK, EU, Canada, Australia) can enter for 365 days visa-free, making the residence permit less urgent than in most countries
Neutral reference — we don't recommend one programme over another. Programmes change: always verify each detail against the official source linked on the individual program pages.