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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.

Tip

Keep records of income and file returns on time on rs.ge, as late penalties are charged automatically.

What may differ

Rules change and depend on citizenship and status, so check the official website or a lawyer before applying.

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

  • Does a foreigner need a work permit in Georgia?

    Yes: since 1 March 2026, foreigners generally need a labour activity permit to work legally in Georgia, including individual entrepreneurs and the self-employed.

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  • What does Georgia produce, and what drives its economy?

    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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  • How do you open and close a sole proprietorship in Georgia?

    A sole proprietorship in Georgia is opened at a Public Service Hall or through the National Agency of Public Registry, then you apply separately to the Revenue Service for small business status to pay 1% of turnover.

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  • How can a foreigner register a business in Georgia?

    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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