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On September 24, 2025, new tax incentives came into effect in Georgia for:
- innovative startups;
- small and medium-sized innovative enterprises (SMEs);
- companies providing research and development (R&D) services.
The main goal is to stimulate innovation, investment in research, and retention of talent within the country.
Benefits for innovative startups
| Period | Income tax (salary) | Income tax |
|---|---|---|
| The first 3 years | Tax exemption (0 %) | 0 % |
| 4—6 years | 5 % | 5 % |
| 7—10 years | 10 % | 10 % |
This way, the startup gets a smooth transition from full exemption to soft taxation.
Benefits for small and medium‐sized innovative enterprises
- When distributing dividends from net profit, an enterprise has the right to reduce its tax base by three times the amount of R&D expenses.
- If profits are reinvested, additional incentives apply.
This encourages companies to invest more in development rather than withdrawing profits.
Benefits for research and development service providers
- Income tax on employee salaries: 5 %.
- Income tax: 5 %.
This makes Georgia an attractive jurisdiction for outsourcing and research centers.
Who is interested in this?
- IT startups and SaaS companies;
- Scientific and technical projects;
- R&D centers of international corporations;
- Founders who want to legally optimize taxes and scale their business.
Q&A
Is it possible to register a startup remotely?
Yes, you can register a company and obtain startup status remotely through the House of Justice and the relevant state registries.
Are there any benefits for foreign founders?
Yes, the residency of the founders is irrelevant. What matters is the status of the company in Georgia.
What happens after the end of the preferential period?
The company will switch to the standard tax rates applicable in the country.
Conclusion
New tax incentives make Georgia one of the most attractive destinations for launching and developing innovative businesses in the region.
ESPERO will help you:
- register your startup in Georgia;
- obtain preferential status;
- assist with tax and legal formalities.
👇 Contact us to take advantage of new opportunities for your business!