Georgia, with its attractive tax climate and simplified company registration procedure, is becoming an increasingly popular choice for entrepreneurs looking to optimize their tax obligations. The status of a tax resident of Georgia opens up many opportunities for you, from reducing the tax burden to simplifying business operations. In this article, we will look at all aspects of obtaining tax residency in Georgia and find out why it may be a profitable decision for you.

Ways to obtain tax residency

There are two main ways to obtain tax resident status in Georgia:

• Standard method: Residing in Georgia for more than 183 days within 12 consecutive months. This method is the most common and intuitive.
• Accelerated method for wealthy individuals: According to a special program, wealthy individuals can obtain tax resident status in Georgia in an accelerated manner. To do this, you must meet certain criteria, such as having significant assets or a high level of income.

Advantages of tax residency in Georgia

• Low taxes: Georgia offers one of the lowest corporate tax rates in the region, at just 15%.
• No currency controls: Free movement of capital allows for unrestricted international financial transactions.
• Simple business registration procedure: Registering a company in Georgia is a quick and easy process that does not require significant investment of time and resources.
• Favorable business climate: Georgia ranks high in ease of doing business rankings, thanks to transparent rules and minimal government intervention.
• No taxes on income earned abroad: Income earned outside of Georgia is not taxed tax.
• A large number of double taxation agreements: This allows you to avoid double taxation of income earned in other countries.

The procedure for obtaining tax residency for wealthy individuals

To obtain tax residency status under the accelerated program, you must meet the following criteria:

• Availability of significant assets: The value of assets must exceed 3,000,000 Georgian lari (about 898,000 US dollars).
• High level of income: Annual income over the past 3 years must be at least 200,000 lari (about 59,800 US dollars).

Obtaining procedure

1. Collection of documents: Preparation of a passport, proof of income or cost assets, auditor's report.
2. Submitting an application: Submitting an application to the relevant government agencies.
3. Obtaining a certificate: After reviewing the application, a certificate is issued confirming the status of a tax resident of Georgia.

Disadvantages and risks

Despite all the advantages, it is necessary to take into account some nuances:

• Changes in tax legislation: Tax legislation in any country can change, so it is important to be aware of the latest changes.
• Problems with residency recognition in other countries: Tax authorities in your previous country of residence may challenge your new status, which may lead to additional tax liabilities.
• Physical presence requirements: Although physical presence is not required to obtain status under the accelerated program, in some cases you may be required to periodically visit Georgia.

Tax residency in Georgia is an excellent opportunity to optimize taxes and create favorable conditions for doing business. However, before making a decision, you need to carefully weigh the pros and cons, consult with a tax consultant and study all the nuances of the legislation.

The ESPERO group company is ready to provide you with comprehensive support in the process of obtaining tax residency in Georgia. Our specialists will help you choose the best option, prepare the necessary documents and accompany you at all stages of the procedure.