Georgia 1% Individual Entrepreneur Tax Regime

Application Process — Step by Step

1. 01

   Confirm legal basis to remain in Georgia

   home country

   Most nationalities simply arrive visa-free for up to 365 days; others should confirm or obtain a qualifying Georgian residence permit before registering.

   Typical duration: 0-4 weeks

2. 02

   Register as an Individual Entrepreneur

   destination

   Attend the Public Service Hall in person and register as an Individual Entrepreneur with the National Agency of Public Registry using a passport and minimal paperwork.

   Typical duration: Same day

3. 03

   Apply for Small Business Status

   destination

   File the Small Business Status application with the Revenue Service of Georgia (RS.ge) to activate the 1% flat turnover tax rate going forward.

   Typical duration: Same day to 1 week

4. 04

   Open a Georgian bank account

   destination

   Open a bank account in the Individual Entrepreneur's name to receive business income and support tax reporting.

   Typical duration: 1-3 business days

5. 05

   Begin invoicing and filing tax declarations

   online

   Start invoicing clients from the Georgian IE registration and file the required monthly/annual declarations with the Revenue Service.

   Typical duration: Ongoing, monthly/annual

Documents Required

Realistic Costs

~ Some figures below are industry estimates rather than officially verified: government_fee, lawyer_fee_high, relocation_misc, total_first_year_low, total_first_year_high, total_5_year_low, total_5_year_high.

One of the cheapest tax-optimisation registrations in the world — many digital nomads self-file the IE registration and Small Business Status application without a lawyer, using a single same-day in-person visit to the Public Service Hall. Figures exclude ordinary cost-of-living and separately exclude any residence-permit costs if the individual pursues one instead of relying on visa-free entry.

Realistic Timeline

• Consulate wait0–0 weeks
• Decision → arrival0 weeks
• Residence card issuance0 weeks
• Total to residence card0–1 weeks

Registration is same-day, in person, with no consulate step. Occasional delays occur if the Revenue Service requests clarifying documents before activating Small Business Status.

Renewal

First renewal after

12 months

Subsequent cycle

12 months

Renewal fee

$0USDEURGBPCADAUDINRAEDTHBSGDBRLMXNZAR

Requirements

No formal renewal — Small Business Status persists indefinitely as long as annual turnover stays below the GEL 500,000 threshold and tax declarations are filed on schedule. Status can be voluntarily deregistered, or is revoked for threshold breaches or ineligible activities.

Path to Permanent Residency — Details

Years required

6

Integration test

Not required

Path to Citizenship — Details

Years required

10

Language test

Yes (A2)

Civic test

Required

Oath

Required

Dual citizenship

Not allowed

Tax Residency

Trigger

183 days/year of presence

Taxation scope

Territorial (in-country only)

Exit-tax country

No

Health Insurance

Mandatory

No

No co-pay required

No

Examples: GPI Holding, Aldagi, Cigna Global

Banking Setup

Open account before arrival

Not typically possible before arrival

Family Specifics

Spouse work rights

Not applicable — the tax status carries no family/dependent provisions; family members must separately rely on Georgia's visa-free entry or their own residence basis

Child school enrolment

Not applicable to this specific tax status; families in Georgia under any legal basis can access public and international schools in Tbilisi and other cities

Parent inclusion

Not eligible

Sibling inclusion

Not eligible

Gotchas — Things to Watch For

• ⚠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

What This Visa Does NOT Allow

• ×Does not grant any right to enter, remain, or work as an employee in Georgia — it is a business tax registration only
• ×Does not exempt the registrant from home-country tax obligations on worldwide income
• ×Does not itself count toward Georgian permanent residency or citizenship timelines

Before You Arrive — Checklist

1. Confirm the nationality's visa-free entitlement to Georgia
2. Prepare passport and a description of the business activity
3. Identify a Georgian bank willing to onboard the Individual Entrepreneur

After You Arrive — Checklist

1. Register as an Individual Entrepreneur at NAPR / the Public Service Hall
2. Apply for Small Business Status at the Revenue Service
3. Open a Georgian bank account
4. Set up monthly/annual tax declaration filing

Conversion Paths

Common Rejection Reasons

• •Business activity falls under a category excluded or restricted from Small Business Status (certain licensed professions, financial, and consulting sub-categories are excluded or treated differently)
• •Turnover exceeding GEL 500,000 in a calendar year
• •Incomplete Revenue Service registration documentation

Frequently Asked Questions