Georgia Tax Residency: Your Complete Guide to Becoming a Resident
Introduction to Georgia Tax Residency
Georgia, located at the crossroads of Europe and Asia, has become a rising destination for digital nomads, entrepreneurs, and high-net-worth individuals seeking a simple and transparent tax system. With its low flat tax rates, territorial approach for individuals, and streamlined residency requirements, Georgia offers one of the most accessible tax residency programs in Eurasia.
This guide explores how to become a tax resident in Georgia, outlining the qualification criteria, benefits, obligations, and key practical steps to establish your residency successfully.
What Defines Tax Residency in Georgia?
Tax residency in Georgia is determined under the Tax Code of Georgia, which sets out clear physical presence and income-based criteria.
Primary Residency Criteria
183-Day Rule: An individual is considered a Georgian tax resident if they are physically present in Georgia for 183 days or more within any 12-month period ending in a given tax year.
High Net Worth Resident (HNWI) Exception: Even without 183 days of presence, an individual may qualify as a “High Net Worth Tax Resident” if they meet both of the following conditions:
They own assets exceeding GEL 3 million (approximately USD 1.1 million), or their annual income exceeds GEL 200,000 (approximately USD 73,000) for the past three years.
They obtain a certificate of tax residency from the Georgian Revenue Service.
Permanent Home and Center of Vital Interests: While the day-count test is most important, the tax authorities may also consider where your home, family, and main economic interests are located if residency status is unclear.
The 183-Day Rule Explained
The 183-day rule is the cornerstone of Georgia’s tax residency determination. If you spend 183 days or more in the country in any rolling 12-month period ending in a tax year, you are deemed a tax resident for that entire year.
How to Track Your Days
To qualify as a tax resident under this rule, you should carefully track your time in Georgia:
Each day or part of a day spent in Georgia counts, including weekends and holidays.
Days of arrival and departure are both counted.
Short business or leisure trips abroad do not interrupt the calculation.
For accurate tracking, tools like Pebbles can help automate your travel-day logging and ensure compliance with Georgia’s 183-day requirement.
Tax Benefits of Georgia Residency
Becoming a tax resident in Georgia brings significant advantages — particularly for entrepreneurs, freelancers, and investors seeking efficient taxation and minimal bureaucracy.
Favorable Tax Regime
Key features include:
Flat 20% personal income tax on Georgian-sourced income.
Foreign-source income exemption: Georgia follows a territorial tax system, meaning foreign income is generally not taxed for individuals unless earned through a Georgian business or employment.
No wealth tax or inheritance tax for direct heirs.
No capital gains tax on certain asset sales (e.g., real estate held for more than two years).
Double Taxation Treaties (DTTs) with over 50 countries, including the UK, Germany, and UAE.
Special Tax Regimes
Small Business Status: Freelancers and entrepreneurs with annual turnover under GEL 500,000 (≈ USD 180,000) can register as small business taxpayers and enjoy a 1% tax rate on turnover.
Virtual Zone Companies (VZCs): IT and tech companies operating from Georgia but serving foreign clients can apply for Virtual Zone status, exempting them from corporate income tax on export services.
High Net Worth Resident Status: As mentioned, HNWIs can obtain Georgian tax residency even with limited physical presence if they meet wealth or income thresholds.
Tax Obligations for Georgia Residents
Income Taxation
Residents of Georgia are subject to tax on their Georgian-sourced income only. This makes Georgia highly appealing for globally mobile individuals and remote professionals earning foreign income.
Taxable income categories include:
Salaries and wages earned in Georgia
Business income generated in Georgia
Rental income from Georgian property
Capital gains from Georgian asset sales
Filing Requirements
Tax returns are filed annually by April 1 for the preceding year.
Taxes are typically paid at the time of filing.
The Georgian Revenue Service (GRS) provides an online portal for filings in English and Georgian.
Social Security Contributions
Georgia does not levy mandatory social security contributions on individuals. Employers contribute to pension schemes, but self-employed residents are generally exempt.
Establishing Tax Residency in Georgia
If you’re planning to relocate to Georgia, these are the key steps to establish and maintain your tax residency.
Registration Process
Enter Georgia legally and maintain residence for at least 183 days per year (or meet the HNWI criteria).
Obtain a Tax Identification Number (TIN) from the Georgian Revenue Service.
Secure Accommodation — owning or renting property supports your residency claim.
Open a Georgian Bank Account, which strengthens your local economic ties.
Apply for a Residency Permit, if you are a non-citizen staying long-term (optional for some nationalities due to visa-free access).
Keep Evidence of your physical presence and economic ties (lease agreements, bank statements, etc.).
Required Documentation
Typical documentation for tax residency or HNWI certification includes:
Valid passport
Proof of accommodation (lease or property title)
Bank statements or proof of income
Application for residency or tax certificate
Special Considerations
Digital Nomads and Remote Workers
Georgia has become a digital nomad hotspot since the launch of the “Remotely from Georgia” program. Remote workers earning foreign income can live and work in Georgia for up to one year visa-free while remaining exempt from local taxation on non-Georgian income.
To extend beyond one year, consider establishing tax residency formally — which could unlock long-term stability and banking access while keeping tax exposure minimal.
Entrepreneurs and HNWIs
For entrepreneurs, Georgia’s 1% micro and small business regimes and Virtual Zone Company incentives are among the most competitive globally. HNWIs benefit from residency options without the need for extensive day-count presence.
Avoiding Common Pitfalls
Assuming zero-tax applies automatically — foreign income exemptions apply only if properly structured.
Failing to track days accurately — this can cause loss of residency status.
Misunderstanding small business rules — turnover limits and documentation are strictly enforced.
Neglecting home-country exit taxes before moving.
Ignoring treaty obligations — double taxation treaties should be reviewed when earning in multiple jurisdictions.
Conclusion
Establishing tax residency in Georgia is straightforward, cost-effective, and highly beneficial for globally mobile professionals and investors. Whether you qualify under the 183-day rule or the High Net Worth program, Georgia offers an attractive mix of low taxes, simple compliance, and territorial income treatment.
Digital solutions like Pebbles can help you track your 183-day threshold and ensure full compliance while you enjoy the lifestyle and business advantages Georgia offers.
Author: Pebbles
Published: October 31, 2025
