Taxation in Georgia – Taxes for foreigners

Taxation in Georgia in 2024

taxation in GeorgiaTaxation in Georgia is simple and competitive, with six flat tax rates as follows:

  • Corporate income tax: 15%
  • Value-added tax (VAT): 18%
  • Excise tax: Varies depending on the goods or services
  • Personal income tax: 20%
  • Import tax: Varies depending on the goods imported
  • Property tax: up to 1% of the assessed value of the property

There are few important deductions or exemptions available, which makes the Georgian tax system attractive for foreigners, this has made Georgia a popular destination for investments in recent year.

Georgian taxes in more Details

Personal income tax

Individuals in Georgia are subject to personal income tax on their Georgian-source income. An individual is a tax resident in Georgia if he or she spends more than 183 days in the country during a 12-month period.

The personal income tax rate is a flat 20%, but there are some special tax regimes available for nature persons, such as micro and small businesses.

Individual entrepreneurs with annual turnover of less than 30,000 Georgian lari (GEL) are exempt from tax on their business income.

Individual entrepreneurs with annual turnover of less than GEL 500,000 may register as a small business and pay 1% tax on their turnover. The rate increases to 3% if annual turnover will exceed GEL 500,000.

Corporate income tax

Corporations in Georgia are subject to corporate income tax on their worldwide income. However, there is a tax credit available for foreign taxes paid on foreign-source income.

The corporate income tax rate is a flat 15%. However, commercial banks, credit unions, microfinance organisations, and loan providers are subject to a 20% corporate income tax rate.

Value-added tax (VAT)

VAT is applied to most goods and services supplied in Georgia. The standard VAT rate is 18%. However, there are some reduced rates and exemptions available. For example, exports, medical care, and education are exempt from VAT.

Other taxes

Excise tax is applied to certain goods and services, such as alcohol, tobacco, and fuel. The excise tax rate varies depending on the goods or services.

Import tax is applied to goods imported into Georgia. The import tax rate varies depending on the goods imported.

Property tax is applied to real estate located in Georgia. The property tax rate is 1% of the assessed value of the property.

Tax administration

The Georgian Revenue Service (GRES) is responsible for administering the tax system in Georgia. GRES provides a variety of online services to taxpayers, including electronic tax filing and payment.

Georgia has a number of double taxation treaties in place with other countries. These treaties help to avoid taxpayers being taxed twice on the same income.

Overall, Georgia has a simple and competitive tax system that makes it an attractive destination for foreign investment.