Tax Residency of Georgia

Tax Residency of Georgia

Taxes are considerably low in Georgia. The World Economic Forum’s Global Competitiveness Report listed Georgia as the ninth lowest-tax economy. It’s corporate tax rate is significantly lower than those of the United States, France, Belgium, Mexico, and Portugal.

Rates for different activities are as follow:

Income Tax: 20 %
Value-added Tax: 18 %
Corporate Tax: 15 %
Capital Gains and Interest: 5 %
Property Tax: 1 %

Advantages of becoming a Tax resident of Georgia

Tax residents can pay their tax bill electronically on the Revenue Service’s website.
The government is currently developing an overhaul of the country’s corporate tax regime so that businesses will pay less in taxes than they currently do.
Exemption from paying 15% corporate tax on retained or reinvested profits.

Eligibility for Tax Residency in Georgia

The process is pretty simple. Any individual living in Georgia for 183 days during a consecutive 12-month period is eligible to apply for tax residency.
Of course, you may not be able or interested in spending half a calendar year in Georgia. Fortunately, the government has created a special regime for those designated as “high net-worth individuals.”
Someone is considered to be high net-worth if:

The value of his/her confirmed property is greater than GEL3,000,000 (approximately €1.35 million USD);
His/her annual income exceeded GEL200,000 (about €90,000) in any of the three years before the year they submit the application.

There are a few other conditions that must be met:

The applicant must have either a Georgian residency permit or Georgian nationality … OR, the applicant must verify receiving at least GEL25,000 (just over €6,000) of Georgian source income during a single year.

How to Obtain Tax Residency

Obtaining Tax Residency by living:

You should permanently live in Georgia for 183 Days and you will be automatically deemed as Georgian tax resident.

After expiration of 183 days you should apply to Revenue Service of Georgia to get Tax Resident Certificate and it will be issued within 3 days.
Obtaining Tax Residency as a “high net worth individual”:

In case you are not planning to live in Georgia for more than 183 days per year you can obtain tax residency of Georgia if you are “high net worth individual”

For Georgian tax residency purposes, the individual is deemed to be a high net worth individual if:

(i) the value of his or her confirmed worldwide property exceeds GEL3,000,000 (three million Georgian Lari), or

(ii) his or her annual worldwide income has exceeded GEL200,000 (two hundred thousand Georgian Lari) during the last three years

In order to receive Georgian tax residency status under the Special Residency Regime, the High Net Worth Individual must also satisfy certain additional requirements. In particular, under the Regime, Georgian tax residency status is granted to a High Net Worth Individual only if:

(i) he or she has either a Georgian residency permit or Georgian nationality;

(ii) he or she verifies receiving more than GEL25,000 (twenty-five thousand Georgian Lari) of Georgian source income during a single year.

What is Included in the Package:

Preparation of documents by experts.
Final Assessment of documents by our top Immigration Lawyer.
Personalized support with application filing.
Assistance with obtaining resident card after application approval.
Complete guidance and assistance during the entire process.

Package Fee – €1600

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