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Georgia offers one of the simplest and most favorable tax regimes for individual entrepreneurs (IE). Especially attractive is the “small business” system with a tax rate from 1% on turnover. This regime is available not only to Georgian citizens, but also to foreigners working in Georgia or remotely.
What is small business status in Georgia?
This is a special tax regime provided for by the Tax Code of Georgia for individual entrepreneurs with annual turnover up to 500,000 GEL.
Advantages:
Who is eligible for this status?
Legally any natural person, including foreigners. No citizenship or residence permit required.
Conditions
- Registration as a sole proprietorship in the Register of Legal Entities through the House of Justice.
- Opening a bank account in Georgia.
- Registration in the tax system on rs.ge.
- Applying for small business status through personal cabinet on rs.ge.
- Turnover for the year should not exceed 500,000 GEL.
- The activity must not be included in the list of exemptions (Art. 88.1 of the TC).
Step-by-step instructions
- Prepare your passport (translation is not required).
- Come to the House of Justice and register the IE.
- Open a bank account.
- Register on rs.ge.
- Apply for small business status through the office on the tax office website.
- Start your business.
Table: Comparison of modes
| Indicator | Ordinary sole proprietor | Small business (1 %) |
|---|---|---|
| Tax rate | 20% of profit | 1% of turnover |
| Declarations | 1/year | Every month |
| Turnover restriction | None | Up to 500,000 GEL per year |
| Citizenship required? | No | No |
Facts and features
- Foreigners can open a sole proprietorship and obtain the status without residence permit.
- Turnover in foreign currency is taken into account when calculating the limit.
- If the turnover exceeds GEL 500,000 for two consecutive years — the status is lost in the third year.
- It is possible to conduct online activities and work with foreign clients.
Frequently asked questions
- Can I get small business status without a residence permit?
- Yes, you can register as a sole proprietor and obtain small business status without a residence permit.
- What counts as turnover?
- Any receipts to the sole proprietor's account from entrepreneurial activities, including in foreign currency.
- What happens if I exceed the GEL 500,000 limit?
- If the excess occurs two years in a row, you will lose your small business status from the third year and move to the general taxation system.
- Can I work for a foreign company?
- Yes, if you are working as a contractor (and not under an employment contract), it does not prevent you from obtaining small business status.
How ESPERO can help
ESPERO provides a full range of services:
- IP registration — online enrollment and support;
- translation and apostille of documents if necessary;
- connection to the tax system and customization of the office;
- application for small business status;
- consultations on taxation and turnover;
- support for foreigners in opening bank accounts.
Contact us — we will simplify the process, eliminate errors and save your time.