Georgia has long been known for its open-door business policies — a country where entrepreneurs, freelancers, and digital nomads could register and work with minimal bureaucracy.
However, this freedom is about to evolve.
From March 1, 2026, a new Work Permit regime will take effect, introducing structured regulations for all foreign nationals engaging in paid activities in Georgia.
This reform aims to standardize employment practices, protect local labor interests, and align with EU-compatible migration standards while maintaining Georgia’s global appeal for remote professionals.
Background: Why Georgia Is Introducing Work Permits
Until now, Georgia had no formal work permit requirement.
Foreigners could:
- Enter visa-free (up to 1 year for many nationalities),
- Register as Individual Entrepreneurs (IEs), and
- Legally work, invoice, and pay taxes without any separate authorization.
While this flexibility supported Georgia’s rise as a digital-nomad hub, it also created grey zones in tax residency and labor compliance.
The new Work Permit Law seeks to close these gaps while keeping pathways open for investors, startups, and remote workers.
Key Provisions of the New Regime
1. Who Needs a Work Permit
All foreign nationals who work, operate a business, or provide paid services in Georgia — whether as employees or self-employed — will require a valid work permit.
That includes:
- Employees hired by Georgian companies
- Freelancers offering services in Georgia or remotely from Georgia
- Self-employed foreigners / IEs earning Georgian-sourced income
- Owners or directors actively managing a Georgian company
2. Exempt Categories
Certain categories will remain exempt:
- Holders of permanent residence permits
- Citizens of countries with bilateral exemption treaties (to be announced)
- Short-term business visitors (up to 30 days without local income)
- Diplomatic or international organization staff
3. Permit Duration
Work permits will be issued for:
- Up to 2 years initially
- Renewable upon compliance with tax and immigration conditions
- Linked directly to the employer or business entity
Self-employed individuals (IEs) may be required to renew annually based on tax declarations and proof of activity.
For Digital Nomads & Remote Entrepreneurs
The reform doesn’t intend to restrict nomads — rather, it introduces a clear status for them.
A new “Remote Work Permit” category is expected, allowing foreigners who:
- Earn income from clients outside Georgia, and
- Maintain tax residency in Georgia or another country, to continue operating legally without a Georgian employer.
This will simplify visa-residency consistency, particularly for those using Georgia’s 1 % small business tax regime.
For Companies Employing Foreign Staff
Local companies that hire foreign nationals will now need to:
- Obtain permits before employment begins
- Maintain compliance records for each foreign worker
- Renew permits or report termination within the designated timeframe
Failure to comply may result in:
- Administrative fines
- Suspension of work authorization for both the employer and employee
- Possible restrictions on future hiring of foreign nationals
Employers must therefore align their HR and legal processes with the new requirements before March 2026.
The Transition Period (2025 – 2027)
The Georgian government has announced a grace period to help businesses and individuals adjust.
Key highlights include:
- 2025: legal framework finalized; online permit system to launch
- 2026: new permits become mandatory for new applicants
- 2027: existing foreign workers must convert to the new system
This means foreigners already operating in Georgia (as IEs or under residence permits) have until end-2027 to transition to compliant status.
How This Affects Residence Permits
Under the new framework:
- Holding a work permit will strengthen eligibility for temporary residence.
- Work and residence statuses will be integrated — avoiding double application processes.
- Renewal of residence may depend on tax filings, business activity, and local presence.
For investors and entrepreneurs, this integration creates a more predictable path toward permanent residency.
Compliance Tips from Legal Vista
- Audit Your Current Status:
Check whether your existing activity (as IE, contractor, or director) will require a work permit. - Plan for Transition:
If your current residence expires after 2026, factor in the permit requirement before renewal. - Stay Updated:
Monitor Ministry of Justice and Labor announcements for upcoming sub-laws and online application procedures. - Keep Records Digitally:
Georgia will likely introduce an electronic work-permit registry — keep your business registration, tax receipts, and client invoices well-organized. - Seek Professional Guidance:
Given overlapping rules for tax, residence, and labor compliance, professional review helps prevent future immigration issues.
Broader Implications for Georgia’s Business Climate
Though initially perceived as a stricter move, this reform is expected to:
- Enhance transparency in the labor market
- Align Georgia with European mobility standards
- Boost investor confidence through clearer compliance rules
For serious entrepreneurs, it strengthens Georgia’s reputation as a legitimate, rule-based destination for international business.
Conclusion
Georgia’s new Work Permit Regime marks a shift from informal flexibility to structured legitimacy.
Foreigners will soon need proper authorization to live and work — but the process is expected to remain simple, digital, and cost-effective.
For digital nomads, entrepreneurs, and companies employing foreign staff, 2025 is the time to prepare — ensure your structure aligns with the upcoming requirements to continue enjoying Georgia’s business-friendly environment without disruption.
Legal Vista Insight
Legal Vista continues to monitor every legislative update related to immigration, entrepreneurship, and taxation in Georgia. For professional guidance on compliance or transition under the 2026 work permit regime, contact our legal consultants in Tbilisi or Signagi.