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Tax analysis
Georgia
20% flat or 1% under Small Business. Virtual Zone 0% for exported IT. Easy residency in 2 weeks.
Last updated:
Income tax
20%
- VAT
- 18%
- Corporate
- 15%
- Dividends
- 5%
- Capital gains
- 0%
- Wealth
- —
Residency
0d
- Days/year required
- 0
- Visa types
- Visa-free 365 dÃas (UE/USA/UK/AUS/etc), Residence Permit
- Difficulty
- Easy
- Paperwork
- ~2 wk
From Spain
- Double-taxation treaty
- No
- Modelo 720
- Yes
- Exit tax
- >€4.0M
- Risk level
- Medium
Why Georgia?
Georgia is the "discreet" destination for European nomads: visa-free 365 days for EU citizens, flat 20% IRPF dropping to 1% with Small Business Status or 0% with Virtual Zone, and residency in 2 weeks. Tbilisi has had a consolidated nomad scene since 2020-2021 (Remote Work, Georgia Welcomes Remotely).
General regime
- Income tax: 20% flat on all personal income.
- VAT: 18% on local sales (not on IT services exported from Virtual Zone).
- Corporate: 15% on distributed profits.
- Dividends: 5%.
- Capital gains from foreign assets: 0%.
Small Business Status (SBS)
Special regime for individual entrepreneurs:
- 1% on revenue if you bill <500,000 GEL/year (~165,000 EUR).
- No complex accounting — just simple monthly returns.
- Requires registration as Individual Entrepreneur (IE) with the Revenue Service.
A Georgia-based freelancer under SBS pays ~$1,000 in tax on $100K revenue. Vs Spain freelancer: ~$30,000. Difference: $29,000/year.
Virtual Zone (exported IT services)
Status for Georgian LLCs providing IT services to clients outside Georgia:
- 0% corporate tax on profits derived from IT exports.
- 0% VAT on IT exports.
- Requires registered Georgian LLC + verifiable IT activity (IT activity code, technical staff, foreign-client contracts).
Getting residency
- Visa-free 365 days for EU citizens (and many other nationalities). You arrive and can stay 1 year with no paperwork.
- Company setup: 1-2 days, ~$50, all online via Public Service Hall.
- Bank account: TBC Bank or Bank of Georgia open accounts for IE/LLC in 1-3 days.
- Residence Permit: via economic activity (registered company + demonstrable activity). 2-4 weeks.
Implications from Spain (medium risk)
- No double-taxation treaty in force Spain-Georgia. One has been signed but is pending entry into force.
- Without a treaty, Hacienda isn't obligated to automatically accept your Georgian residency certificate.
- Main risk: if you register a Virtual Zone LLC in Georgia but bill mostly Spanish clients from your old Madrid apartment, Hacienda may consider the real activity occurs in Spain (center-of-interests + economic substance test).
- Modelo 720 required if you open a Georgian bank account >€50K or hold LLC equity.