If you are a freelancer and plan to work on Fiverr from Georgia, registering as a sole proprietor + “small business” status is often the simplest and most profitable option: a 1 % tax on annual turnover (subject to limits) makes legalizing your income cheap and transparent.

Why it makes sense to become an individual entrepreneur in Georgia

• Easy registration and administration. Registering as an individual entrepreneur (IE/IP) in Georgia is quick and can be done remotely through public services/offices (Public Service Hall) or by power of attorney.
• Small business tax regime (1 %). If certain conditions are met (in particular, the turnover threshold), an IE can pay 1 % of turnover instead of complex taxation, which is beneficial for freelancers. The turnover threshold and details must be checked before submitting an application (in 2025, the threshold is up to 500,000 GEL).
• Suitable for Fiverr income. Fiverr allows you to withdraw payments to Payoneer and PayPal (and then to bank accounts/cards), so technically it is easy to accept payments and reflect them in your reports.

Key steps: from registration to obtaining 1 % status

1. Register as an individual entrepreneur (IE). Submit an application to the Public Service Hall (or through an authorized representative by power of attorney). You will need your ID, address, and brief information about your activities.
2. Open an account/accounts for receiving payments. Payoneer or PayPal are recommended (see the “Payment Methods” section). After registering as an IE, you can link payment providers and a bank account.
3. Apply for Small Business Status (SBS). After registering as a sole proprietor, submit an application to the Tax Service to obtain small business status (1 %). The decision is usually made quickly; check the eligibility criteria (type of activity, turnover).
4. Keep records and pay taxes monthly/file returns. Under the terms of SBS, payment is at a simplified rate and reporting is in accordance with Revenue Service rules; often, payment and reporting are synchronized according to the calendar (payment is due by the 15th of the following month, etc.).

Receiving payments from Fiverr: what options are available and which one to choose

Fiverr officially supports Payoneer and PayPal (as well as direct bank transfers/cards in some regions). Each option has its pros and cons.

Payoneer

Pros: integration with Fiverr, the ability to get a local receiving account (USD/EUR) and more favorable withdrawals to some countries; convenient for withdrawals to a card or bank account. Payoneer is often cheaper for large amounts; they have rates for receiving payments from marketplaces.

Cons: commission for conversion/withdrawal to local currency — check the current rates.

PayPal

Pros: familiar to many customers, fast transfers between accounts.

Cons: international fees and conversion margins may be higher, especially when receiving payments from foreign clients and withdrawing to GEL/local banks.

Wise / bank transfer

Wise often offers favorable exchange rates, but direct withdrawal to Wise may not be available on Fiverr — platforms limit withdrawal methods, and it is worth checking their availability (at the time of verification, Payoneer/PayPal are the main supported methods).

Recommendation

If the bulk of your income comes from Fiverr, start with Payoneer (it’s convenient and directly supported). If your client pays via PayPal, keep a PayPal account, but try to keep PayPal payments to a minimum due to additional fees and currency margins.

Taxes and calculations: it is important to understand the scheme

• The tax for small businesses is 1 % of annual turnover, but the limit and conditions must be checked (the turnover threshold is up to 500,000 GEL in 2025). If you exceed the threshold, you lose your status or pay according to different rules.
• How to calculate: convert the amounts you received from Fiverr into GEL at the rate required by the tax authorities (or according to the rule applied when declaring), add up your total annual turnover, and pay 1% of the total amount (in the manner and within the time limits specified by the tax authorities).
• Social contributions/other payments. Depending on your structure and status (whether you work as a resident/non‐resident, whether you pay social contributions), there may be additional obligations. Check with your accountant.

IMPORTANT: currency issue — Fiverr pays in USD; for taxes in Georgia, you need to take into account the income received in GEL at the rate specified by tax regulations (or at the bank rate). Do not make tax conclusions based solely on dollars — check with local accounting practices.

Common mistakes and how to avoid them

• Not applying for Small Business Status right away — you may end up paying more taxes than necessary. Apply after registering as a sole proprietor.
• Ignoring withdrawal fees — PayPal/Payoneer/banks charge fees and conversion margins; include them in your price list or reserve.
• Incorrectly recording currency receipts — keep an accurate record of receipts, with screenshots of payments and conversion rates.
• Automatic renewals/minimum payments — platforms have withdrawal limits; set up a convenient payment schedule in advance.

Quick checklist: what to do right now

1. Register as a sole proprietor at the Public Service Hall (or give power of attorney).
2. Open a Payoneer and/or PayPal account and link it to Fiverr.
3. Apply for small business status (1 %).
4. Set up simple accounting: a table with the payment date, amount in USD, exchange rate for conversion to GEL, amount in GEL.
5. Set aside a reserve for commissions and possible returns (≈ 2—5 % minimum).
6. Agree with your accountant on the format of reporting/social contributions.

Conclusion — is it worth doing?

Yes — for many freelancers on Fiverr, registering as a sole proprietor in Georgia and obtaining small business status is a truly profitable way to legalize income with minimal taxes and relatively simple administration. But it is important to consider the nuances of withdrawing funds (commissions, exchange rates) and follow the rules of tax reporting.