Deel and sole proprietors in Georgia: how to receive payments, save 1% tax, and minimize commissions

If you are a freelancer and get paid through Deel, the logical and economical way is to register as an Individual Entrepreneur, apply for small business status (1% of turnover if you comply with the limits), and withdraw money using the method that gives you the lowest fees in your case (often Wise / local bank via Deel or Payoneer/Deel Card). Deel offers a wide range of withdrawal options — choose based on exchange and withdrawal fees.

1. Why IE + “small business (1 %)” status is usually beneficial for freelancers on Deel

• Simple registration and accounting. An individual entrepreneur (IE) in Georgia can be registered quickly; documents can be submitted remotely or through a representative. This is a convenient legal format for freelancing.
• 1 % tax on turnover. If small business conditions are met in Georgia, a preferential rate applies — 1 % of turnover up to a set limit (the limit and details have changed in recent years — check the current thresholds when applying; in 2024—2025, the thresholds were discussed at 500k-700k GEL). This makes income legalization very cheap compared to the general regime.
• Compatible with marketplaces/platforms. Deel is a payment “wrapper” that allows you to accept payments from customers and then conveniently withdraw money in various ways; sole proprietorship status does not prevent you from receiving payments through Deel.

2. How Deel works — key points for contractors in Georgia

• Deel is a platform for contracts and payments. You create an account, sign a contract (Deel contract), receive your balance, and choose a withdrawal method (Deel Card, bank transfer, Payoneer, PayPal, Wise, Coinbase, etc.). The set of available methods depends on the country and verification status.
• Flexible withdrawals and partnerships. Deel integrates with providers (Payoneer, Wise, Revolut, Coinbase, etc.) — this gives you a choice: where to get the best rate and lower fees.
• Fees depend on the method. Deel has its own withdrawal fees, plus providers (banks, Payoneer, Wise) charge their own fees and margins for conversion. Be sure to check the withdrawal fees page on the Deel website and compare them with the provider’s rates.

3. What withdrawal methods are available and when to choose them

List — from the most advantageous to the least advantageous, but it is important to check your specific rates.

1. Wise (via Deel → Wise) — often offers the best interbank rate and low fees for USD→GEL conversions; suitable if you have a Wise account and can easily transfer to a local bank. Check compatibility: some platforms allow direct withdrawal to Wise.
2. Local bank transfer (via Deel partners) — convenient if the fee is acceptable and the bank in Georgia does not charge much for incoming SWIFT transfers; but SWIFT transfers are usually more expensive and take longer.
3. Payoneer — reliably integrates with marketplaces (often supported), convenient for further withdrawal to a card; conversion and withdrawal fees depend on Payoneer’s rates.
4. Deel Card / Instant Card Transfer / Revolut — very convenient for instant payments and spending, but it is important to check the exchange rate and fees for withdrawals to a local card.
5. PayPal / Coinbase (crypto) — PayPal can be more expensive due to conversion fees and spreads; crypto withdrawals (via Coinbase/USDC) sometimes provide a fast and relatively cheap way, but carry their own risks and nuances (taxes, volatility).

There is no universal “best” method — choose based on the specifics: what currencies you receive (USD/EUR), what fees are charged by the provider and the recipient’s bank, and how quickly you need the money.

4. How to calculate “net” amounts — a simple formula

1. The client pays in USD → the money arrives at Deel → you choose to withdraw in GEL.
2. The amount in the Deel account (USD) → Deel's withdrawal fee is deducted (example: 1—3 % or a fixed amount, see rates).
3. Then the provider (Wise/Payoneer/bank) converts the money at its own rate (rate = interbank ± spread).
4. The bank in Georgia may additionally charge a fixed commission for incoming transfers or a percentage.
5. Total on the card = amount × (1 − (sum of % fees)) − fixed commission.

Example (conditional): $1,000 → Deel fee 1% = $10 → $990 → conversion at the effective rate (e.g., average rate − 1.5% spread) → transferred to GEL → the bank withheld 10 GEL for the incoming SWIFT → the amount on the card was ~depending on current rates. Always check the actual rates before making a transaction.

5. Taxes and accounting: what you need to know and do

• 1 % tax (Small Business Status): if your sole proprietorship meets the criteria, the tax is 1 % of turnover (within the limit). Check the current threshold and conditions: the rules have changed (in 2024—2025, thresholds of 500k—700k GEL and conditions for transition to 3 % when exceeded were discussed).
• Currency accounting: income from Deel is usually in USD/EUR — in your accounting, you need to record the date of receipt, the amount in currency, and convert it to GEL at the rate you use for tax reporting (usually the bank/tax rate). Keep statements, payment confirmations, and screenshots of transactions.
• Social security contributions and other payments: if you pay social security contributions as a sole proprietor, check the rates and thresholds. Freelancers often pay the minimum contributions, but this depends on their residency/registration status.
• Recommendation: work with a local accountant for your first withdrawal/declaration — they will advise you on the exact exchange rates and reporting deadlines.

6. Practical checklist “from registration to first payment”

1. Register as an Individual Entrepreneur (IE) at the Public Service Hall or through an authorized representative.
2. Open an account with Deel and complete verification (KYC).
3. Link your preferred withdrawal method (Wise / Payoneer / Deel Card / bank). Check if it is available in the withdrawals section of your account.
4. Apply for “small business” status (1%) with the tax authorities and confirm that you meet the requirements.
5. Make a test withdrawal of a small amount to measure the actual fees and time (and adjust your choice of method).
6. Create an accounting table: date of receipt (USD), amount (USD), Deel fee, provider fee, conversion rate, total in GEL, date of receipt on the card. This will provide transparency for the tax authorities.
7. Discuss the nuances of social contributions and possible additional taxes with your accountant.

7. Common mistakes made by beginners

• Choosing a withdrawal method based solely on advertising without testing the actual fees (a test withdrawal is mandatory).
• Ignoring the requirements and deadlines for obtaining Small Business Status — you may lose your benefits.
• Not keeping receipts for payments and exchange rates — this complicates reporting later on.
• Not taking into account that some providers charge a percentage and a fixed fee, so the amount on the card may differ from expectations.

Conclusion

Deel provides flexible and modern ways to receive international payments — it is a good platform for Georgian freelancers. The optimal legal+tax route is most often to register as a sole proprietor and obtain small business status (1%), set up withdrawals through the most cost-effective channel (often Wise or Payoneer/Deel Card), and test the fees before making regular payments.