Georgia has established itself as one of the most competitive corporate tax environments in the world. By blending ultra-low tax rates with minimal bureaucratic friction, it has become a sanctuary for digital nomads, tech startups, and international consultants looking to maximize profitability.
The 1% Small Business Tax Status
For individual entrepreneurs and freelancers, Georgia offers a revolutionary tax status that is unmatched in Europe:
• 1% Income Tax: If your annual business turnover is below 500,000 GEL (approx. $185,000 USD), your personal income tax rate is just 1%.
• Zero Tax on Small Turnovers: If your turnover stays under 30,000 GEL annually, your tax rate drops to 0%.
• Global Remote Work: You can manage your global client base while enjoying an incredibly low cost of living.
The Estonian Corporate Tax Model (LLC)
For larger corporate entities, Georgia utilizes the “Estonian Model,” which shifts the focus from earning to reinvesting:
• 0% Distributed Profits Tax: Corporate income tax (15%) is only triggered when profits are distributed as dividends to shareholders.
• Untaxed Reinvestment: All profits retained, reinvested, or used for business expansion remain completely tax-free.
• Virtual Zone & International Company: Special tech and service sectors can reduce their corporate income tax to 0% or 5% on specific international revenues.
Stop overpaying taxes in high-friction jurisdictions. Speak to our corporate restructuring lawyers to register your Georgian business today.