Virtual Zone (Georgia)

Virtual Zone is Georgia's special tax regime that exempts 100% of corporate tax for Georgian companies providing IT services to clients outside Georgia.

Benefits:

• 0% corporate tax on profits from IT service exports.
• 0% VAT on IT exports (non-recoverable).
• Compatible with Small Business Status for the founder (1% on dividends taken as individual).

Requirements:

• Georgian LLC registered at the Public Service Hall.
• Main activity verifiable as IT services (software dev, hosting, SaaS, tech consulting).
• Virtual Zone certificate application to the Ministry of Finance with foreign-client documentation.
• Minimum substance: office/coworking + demonstrable operational activity (no shelf company).

Cost and timing:

• LLC setup: 1-2 days, ~$50 USD.
• Virtual Zone application: 2-4 weeks.
• Maintenance: monthly accounting + annual filing.

Risk from Spain: Hacienda watches Spanish-owned Virtual Zone structures very closely. If the founder bills Spanish clients from Georgia without physical presence there, Hacienda may recharacterize the operation as activity performed in Spain (center-of-interests test).