How to get a tax residence in Georgia for a foreign entrepreneur. Advantages of tax residency in Georgia
Learn how to reduce your expenses by saving on paying taxes! We will tell you all about the advantages of tax residency in Georgia. Right now, follow the link to find out how to get the status of a taxpayer of Georgia. Here you will find answers on how a foreign entrepreneur can pay less taxes to his country!
Find out how to get a tax residence in Georgia⬇️
One of the ways to reduce the costs of business taxes is to choose a country with convenient tax regimes for its registration. To do this, you will not have to change your citizenship, although in some countries only such a course of events is provided.
Georgia offers excellent tax conditions for foreign entrepreneurs. Add to this a warm climate, a convenient geographical location, and in the end you will get an ideal country for doing business.
What advantages are there in tax residency in Georgia for foreign entrepreneurs, as well as how to get it, we will discuss further.
Advantages of tax residency in Georgia
In addition to the simplicity and ease of doing business in Georgia, foreign entrepreneurs receive:
- no income taxes;
- without a residence permit, income tax is 20%, while there are no pension and social contributions;
- if you have a residence permit or permanent residence, pension contributions amount to only 2%, they are completely absent for renting out premises;
- the absence of double taxation for citizens of a number of countries with which Georgia has concluded a special agreement.
Even for freelancers, it is more profitable to register as a tax residence, since without this registration, the income tax in Georgia will be 20%. And for registered 1%. Therefore, if a freelancer came to Georgia, then it is worth considering registering as an individual entrepreneur.
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How to become a tax resident in Georgia
This status is assigned to foreign citizens in several ways. Next, we will analyze each of the methods in more detail.
Assignment of status on general grounds
After a continuous stay in Georgia for more than 183 days, everyone is recognized as a tax resident of the country. The main thing is that a foreign citizen should not be:
- as part of the diplomatic mission, either by a relative of the ambassador,
- an employee of a non-Georgian company, or his relative,
- an employee of a civil service of a third-party country in Georgia, or his relative,
- a tourist or a citizen receiving treatment,
- a person in transit moving to neighboring countries.
In case of disagreement with the assignment of the status of a taxpayer of Georgia automatically, a foreign citizen has the right to provide a justification to the Tax Service about the reasons for disagreement.
This method is not suitable for entrepreneurs who want to get the desired status sooner. There are other ways for them.
Assignment of the status of tax residence of Georgia in other ways
- For owners of significant property, it is provided for obtaining tax residency in one month. At the same time, a foreign citizen must confirm:
- active assets in the amount of more than 3 million lari,
- income of more than 200,000 lari for three years,
- Residence permit in Georgia,
- income from Georgian sources in the amount of more than GEL 25,000.
- Organizations registered in Georgia are considered tax residents of the country a priori.
- Sole proprietors are not tax residents, but are exempt from double taxation. This is suitable for citizens of those countries with which Georgia has concluded an agreement to avoid paying double taxes.
- Foreign citizens who have a residence permit are only given the right to receive this status on an accelerated basis when applying.
What documents are needed to submit an application
An application for obtaining tax residency in Georgia is submitted to the Service Agency under the Ministry of Finance. At the same time , a foreign citizen is obliged to provide:
- passport, residence permit,
- information about capital and assets,
- completed application form.
After verification by the Revenue Service of Georgia, a decision is made to assign the status of a tax resident of the country, or to refuse to accept the application. The procedure takes about a week, provided there are no errors and inaccuracies. If such cases are found, the deadline is extended by 30 days to correct them.
Upon successful consideration of the application, a foreign citizen receives a 9-digit taxpayer code of Georgia.
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