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What are the taxes and VAT in Georgia?

Income tax, VAT, profit tax and small business.

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Short answer

In Georgia, income tax is 20%, VAT is 18%, corporate profit tax of 15% is paid only on distributed profit, and dividends are taxed at 5%. An individual entrepreneur with small business status pays 1% of turnover up to 500,000 GEL a year. VAT registration is required once turnover over 12 months exceeds 100,000 GEL.

Taxes in Georgia: rates and rules faq-cover-work-business-taxes.png

Why

  1. Rates and rules are set by the Tax Code of Georgia.
  2. Profit tax follows the Estonian model: no tax is due until profit is distributed.
  3. Small business status is not available for all activities, for example some consulting services.

Details

Georgian tax residency is usually acquired by spending 183 days or more in the country within 12 months. Returns and payments are filed online through the Revenue Service portal.

People also ask

  • What is the income tax rate in Georgia?

Sources

This answer is for reference only and is not legal advice. Fees and rules change, so check official websites.

Taxes in Georgia: rates and rules

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    Georgia's economy rests mainly on services: tourism, trade, transport and the transit of goods between Europe and Asia, as well as construction.

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    A foreigner can register a company in Georgia, usually an LLC, or become an individual entrepreneur through a Public Service Hall or the National Agency of Public Registry, with registration taking from one working day.

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    According to the National Statistics Office, the average gross monthly wage in Georgia was 2,389 GEL in the second quarter of 2026, and higher in Tbilisi.

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