Georgia, a small country in the Caucasus, has gained a reputation as one of the most crypto-friendly jurisdictions in the world in recent years. A favorable tax climate, favorable regulation and developed infrastructure make it attractive to miners, crypto exchanges and other participants in the crypto industry.

Why is Georgia so attractive for crypto business?

• Cheap electricity: One of the key factors for miners. The cost of electricity in Georgia is significantly lower than in many other countries, making mining more economically viable.
• Loyal taxation: The Georgian government has developed a relatively lenient tax regime for crypto companies. For example, income from cryptocurrency transactions by individuals is exempt from income tax, and significant tax benefits are provided for legal entities, especially those operating in free industrial zones.
• No currency controls: Georgian banks do not impose restrictions on currency transactions, which simplifies international transactions.
• Confidentiality: Georgia is not a member of the automatic exchange of financial information, which ensures a high level of confidentiality for businesses.
• Quick company registration: The procedure for registering a company in Georgia takes a minimum of time and does not require a large number of documents.
• Developed infrastructure: Georgia offers a developed banking system, reliable Internet connection and access to international financial markets.
• Loyal migration policy: Many foreign citizens have a visa-free regime, which simplifies entry and residence in country.

Cryptocurrency taxation in Georgia

According to the official explanation of the Ministry of Finance of Georgia:

• Income of individuals from cryptocurrency transactions is exempt from income tax.
• Sale and exchange of cryptocurrency for national or foreign currency is exempt from VAT.
• Export of hash gives the right to input VAT.
• Hash transactions between residents in Georgia and the purchase of hash by a resident from a non-resident are subject to VAT.

Free industrial zones

Free industrial zones of Georgia are of particular interest to crypto companies. Companies registered in such zones can take advantage of significant tax incentives, including VAT exemption on export revenue.

Conclusion

Georgia offers attractive conditions for the development of crypto business. Cheap electricity, loyal taxation, developed infrastructure and a favorable business climate make this country attractive to miners, crypto exchanges and other market participants. However, as in any other jurisdiction, it is important to carefully study all the nuances of local legislation and consult with lawyers before starting operations.

Contact us to register your crypto business in Georgia!