What is tax residency and why does it matter
A tax resident is a person whose tax obligations are tied to a specific country. Georgia is attractive for its territorial principle: a significant portion of foreign-source income is not subject to local tax under certain conditions. This makes the country a convenient base for those earning remotely or running an international business.
The main rule: 183 days
The basic and most straightforward way to become a tax resident is to spend 183 or more days in Georgia within a year. Days are counted by actual physical presence, regardless of whether you entered visa-free or live on a residence permit. Importantly, 183 days is about physical presence, not status type. Even a long visa-free stay can make you a resident.
HNWI status: residency without 183 days
For wealthy individuals, there is the High Net Worth Individual (HNWI) status. It allows obtaining tax residency without the 183-day rule, subject to meeting wealth criteria and having a connection to the country. This route is valued by those who travel extensively and cannot physically spend half a year in one place.
Small business regime: 1% entrepreneur tax
One of the most attractive elements of the Georgian system is the small business regime. An individual entrepreneur with small business status pays just 1% on turnover for annual turnover up to GEL 500,000. The combination of 'tax residency + 1% IP' is one of the most common reasons entrepreneurs choose Georgia.
Important: the regime applies to specific eligible activities (some sectors are excluded), the rate changes if the turnover ceiling is exceeded, and the status must be correctly registered with basic record-keeping.
How to confirm your status
To officially enjoy the benefits, you typically need a tax residency certificate that confirms your status to Georgian and foreign authorities. It is needed, for example, to avoid double taxation. The certificate is obtained through the tax service.
Who benefits most
Freelancers and remote workers — thanks to the 1% entrepreneur regime. International business owners — thanks to the territorial principle. High-net-worth individuals with a mobile lifestyle — through HNWI status. Long-term relocants — residency comes naturally after 183 days.
FAQ
Is 183 days enough to become a resident?
Yes, this is the basic criterion. Crossing the physical presence threshold gives you grounds to be considered a tax resident.
Do I need a residence permit for tax residency?
No, residency is determined by presence (or HNWI status), not by having a residence permit. But a permit is convenient for long-term stays.
Is the 1% entrepreneur tax real?
For small businesses with turnover up to GEL 500,000 per year and eligible activities, the rate is 1% on turnover. Check the conditions and exclusions.