Georgia 1% Individual Entrepreneur Tax Regime vs Italy Flat Tax Regime for High-Net-Worth New Residents
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 1% Individual Entrepreneur Tax Regime is faster: 1 months vs 3 months for Italy Flat Tax Regime for High-Net-Worth New Residents.
- ›Italy Flat Tax Regime for High-Net-Worth New Residents leads to citizenship (~10 yrs); Georgia 1% Individual Entrepreneur Tax Regime does not.
- ›Italy Flat Tax Regime for High-Net-Worth New Residents includes family members; Georgia 1% Individual Entrepreneur Tax Regime does not.
- ›Georgia 1% Individual Entrepreneur Tax Regime uses territorial taxation; Italy Flat Tax Regime for High-Net-Worth New Residents taxes worldwide income.
Georgia 1% Individual Entrepreneur Tax Regime Georgia · other | Italy Flat Tax Regime for High-Net-Worth New Residents Italy · passive income | |
|---|---|---|
| Country | Georgia | Italy |
| Category | Other | Passive Income |
| Application Fee | $0 | $300 |
| Minimum Income | — | — |
| Minimum Investment | — | — |
| Processing Time | 1 months | 3 months |
| Family Included | No | €25,000/year (approximately $27,000) per additional qualifying family member (spouse, children, or other dependent relatives) included in the same substitute-tax election. |
| 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. | Applicant must become an Italian tax resident, generally meaning registration in the civil registry (Anagrafe) and/or presence in Italy for more than 183 days in the tax year, or establishing habitual abode/domicile in Italy. Must not have been an Italian tax resident for at least 9 of the preceding 10 tax years to qualify initially. |
| 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. | The single flat substitute tax replaces ordinary Italian progressive income tax (up to 43%) on all foreign-source income and gains. It also exempts the beneficiary from Italy's foreign-asset wealth taxes (IVIE/IVAFE), from disclosing foreign assets on the RW tax-return schedule, and from Italian inheritance/gift tax on foreign assets. Italian-source income remains taxed under ordinary rules; the regime applies for a maximum of 15 tax years. |
| Tax Residency Trigger | 183 days/yr | 183 days/yr |
| Worldwide Taxation | Territorial | Yes |
| Renewal Cost | $0 | $216,000 |
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 Italy Flat Tax Regime for High-Net-Worth New Residents
Italy's flat tax regime for new residents (Art. 24-bis of the tax code) lets individuals who move tax residency to Italy pay one flat substitute tax on all foreign-source income and gains, instead of ordinary progressive taxation and Italy's foreign-asset wealth taxes. Aimed squarely at high-net-worth individuals, it requires the applicant not to have been an Italian tax resident for 9 of the prior 10 years. An August 2024 budget decree doubled the annual charge from €100,000 to €200,000, and Budget Law 2026 raised it again to €300,000 for elections from 1 January 2026, with earlier participants grandfathered at their entry rate. The regime runs up to 15 years, can extend to family members for €50,000 each (€25,000 for pre-2026 elections), and is typically paired with an underlying immigration route — Elective Residency, an Investor Visa, or EU free movement — since the election itself confers no right to reside.
Full Italy Flat Tax Regime for High-Net-Worth New Residents 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
Italy Flat Tax Regime for High-Net-Worth New Residents
- ⚠The flat tax is due in full for the year regardless of how much foreign income was actually earned — it is not a cap on tax owed, but a fixed annual charge
- ⚠The regime confers no residence rights on its own; losing or failing to maintain the underlying visa (Elective Residency, Investor Visa, etc.) ends the ability to remain in Italy irrespective of the tax election
- ⚠The rate is fixed at whatever applies on your election date and grandfathered for the 15-year life: €100,000 before 10 Aug 2024, €200,000 from 10 Aug 2024, and €300,000 from 1 January 2026 (Budget Law 2026) — moving to Italy later means the higher current rate, so the timing of your residence transfer matters
- ⚠Italian-source income and capital gains are explicitly excluded from the flat tax and remain subject to ordinary progressive Italian taxation, which can catch newcomers off guard
- ⚠The 9-out-of-10-year prior non-residence test is strictly enforced; recent Italian tax residency, even briefly, can disqualify an applicant
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.