YouTube and sole proprietorships in Georgia: how to enable monetization, receive payments, and save 1 % tax

If you plan to earn money on YouTube and live in Georgia, the simplest and most economical legal route is often as follows: register as an Individual Entrepreneur (IE), apply for small business status (1 % of turnover), join the YouTube Partner Program, and receive payments via AdSense → bank transfer (EFT/wire). Be sure to test the withdrawal method (small amounts) and keep track of currency exchange rates: exchange rates and commissions can eat up 2—6 % of your income until you optimize the process.

A brief overview of YouTube monetization

• To earn revenue from advertising and YouTube features (advertising, YouTube Premium, Super Chat, channel subscriptions, Super Thanks, merchandise, etc.), you need to be part of the YouTube Partner Program (YPP) and link your account to Google AdSense for payments.
• AdSense accumulates your earnings and pays once a month, usually when your balance exceeds the payment threshold. Payment methods vary by country: EFT (electronic transfer), wire (interbank transfer/SWIFT), check (rare), etc. Google has a separate page with instructions on how to add a payment method.

Important for Georgia: Google can pay via SWIFT/wire to Georgian banks (and generally supports bank transfers); local experts have practical instructions on how to link a Georgian account to receive payments.

Why registering as a sole proprietor + “small business (1 %)” status is often beneficial for YouTubers

• Georgia has a simplified regime for small businesses with a very low tax rate of 1 % of turnover, subject to certain conditions (there are thresholds for annual turnover and types of activity). The threshold and details are subject to change; in 2024–2025, values of around 500k—700k GEL were discussed — check the current figures before applying.
• Registering as a sole proprietor simplifies banking operations, allows you to legally accept foreign payments, and submit reports on time (and thus work with partners/agents with peace of mind). Registration as a sole proprietor is done through the Public Service Hall and takes little time.

Practical steps: from zero to your first payment

Step 1 — Preparation

1. Check: your channel meets the YPP requirements (1,000 subscribers and 4,000 watch hours in the last 12 months, or equivalents for Shorts/other YouTube requirements).
2. Set up Google AdSense (link your YouTube account to AdSense), provide the correct tax information (W-8BEN for non-US residents, if required).

Step 2 — Register as an individual entrepreneur in Georgia

Register as an Individual Entrepreneur at the Public Service Hall or through an intermediary service. Prepare your address and documents. This is quick — often takes just one business day.

Step 3 — Apply for Small Business Status (SBS)

After registering, apply to the Revenue Service for small business status (1 %). Make sure your type of activity is not excluded. If your income is within the threshold, the 1% tax is standard and easy to account for.

Step 4 — Setting up payments in AdSense

In AdSense → Payments → Payments info → Add payment method, specify your bank account (EFT/wire). SWIFT (wire) is often used for Georgia — check which options are available in your account.

Step 5 — Test withdrawal

Make a test withdrawal of a small amount (e.g., $50–100), and measure how much arrived in your account, what fees were charged by the receiving bank, and what the conversion rate was. This is key — real data is more important than recommendations.

Monetization options and how they affect payments

• Advertising / AdSense—the main source; paid through AdSense, usually in USD/EUR and then converted.
• YouTube Premium share—goes through AdSense along with advertising.
• Channel Memberships / Super Chat / Super Thanks — also included in monetization and taken into account in payments; sometimes payment providers/countries affect the methods of receipt.
• Merchandise / Affiliate / Sponsorships—paid directly (Payoneer, Wise, bank transfer, direct contracts) and require separate accounting in income.

Each stream must be reflected in the accounting and converted to GEL at the applicable rate to calculate the 1 % tax.

Practical details of payments in Georgia (what really matters)

1. AdSense → bank (wire/EFT). AdSense supports wire transfers — Google can send funds in USD/EUR to your bank account via SWIFT. EFT (local transfer) is available for some countries—check AdSense to see what is available for Georgia.
2. Account name. Reddit/practice shows that personal AdSense usually requires linking to a personal bank account (the recipient’s name matches the name in AdSense). If you use business AdSense, the requirements may differ — check your account type.
3. Commissions and spreads. Banks and providers convert currency with a margin; SWIFT correspondents sometimes charge fixed fees. Therefore, the actual “net” amount = AdSense balance − Google fee (if any) − provider fee − bank fees − exchange rate difference. A test withdrawal will give you the actual figures.
4. Tax issue (currency): for tax purposes, all receipts are converted to GEL at the rate you use in your accounting (usually the bank/tax date rate). Keep receipts for all receipts.

Example of a simple calculation

Let's assume: $1,000 AdSense balance; AdSense transfers to your Georgian account via SWIFT.

• Google sent $1,000.
• The correspondent bank withheld $20 (fixed).
• The recipient bank converted at the interbank rate — 1.5 % (instead of the interbank rate of 1 USD = 2.70 GEL, actually 2.70×0.985 ≈ 2.66 GEL).
• On the GEL account: (1000 − 20) × 2.66 = 980 × 2.66 = ~2,607 GEL.
• Tax (1%) for small business status: ~26.07 GEL.

Total “net” after tax ≈ 2,580.9 GEL (plus possible other fees/social contributions). This is an example — actual figures depend on your bank rates and exchange rates. Run tests and set aside a reserve of 2—5 %.

Common mistakes made by YouTubers and how to avoid them

• Not testing conclusions — choosing a method based on reviews rather than actual cash flow. Always make a mini-conclusion.
• Incorrect AdSense account type — personal vs. business (check which account Google can send payments to).
• Ignoring SBS application — register as a small business before you start earning serious income if you plan to earn money consistently.
• Poor currency accounting — not saving screenshots of payments, not recording the exchange rate and date — will make it difficult to file your tax return.

Short practical checklist

• Check that the channel complies with YPP requirements and connect AdSense.
• Register as an Individual Entrepreneur (Public Service Hall).
• Apply for Small Business Status (1%).
• Add a bank account to AdSense → make a test withdrawal of $50–150.
• Record all payments/exchange rates in a table (date, USD, fees, exchange rate, total GEL).
• Agree on the reporting format and social contributions with your accountant.

Is it worth registering as a sole proprietor and working officially?

Yes — for serious YouTubers, registering as a sole proprietor and obtaining small business status (1 %) makes income transparent and the tax burden predictable. The main thing is to set up payment acceptance (AdSense) correctly, test withdrawal channels, and keep accurate currency records. This will allow you to scale your channel without any surprises when you receive your first large payment or during a tax audit.