Taxes in Georgia: A Complete Guide for Investors and Residents

Georgia is one of the most attractive countries for living, investing, and doing business. One of its key advantages is its transparent and favorable tax system. In this article, we will discuss all the main taxes that are important to know if you plan to live, work, or invest in Georgia.

Why Georgia’s Tax System is Beneficial

Simple and transparent rules for residents and non-residents.
Tax rates are lower than in most European countries.
Special benefits for businesses and investors.
The ability to register a company with minimal bureaucratic complications.

Main types of taxes:

1. Personal income tax

Rate: 20% from annual income for residents.
For non-residents: tax is levied only on income earned in Georgia.
A simple system for declaring and paying taxes.

2. Corporate income tax

Standard rate: 15% .
There are benefits for IT companies and small businesses.
Companies operating in free economic zones may pay 0% income tax.

3. Property tax

Individuals pay 1% from the cadastral value real estate per year.
Additionally, income tax may be levied on the sale of real estate. 5%.

4. VAT (value added tax)

Standard rate: 18%.
Applies to all goods and services, with some exceptions (medical services, education, etc.).

Tax optimization tips

Plan your income in advance and take benefits into account.
Consider opening a company in a free economic zone.
Use professional advice for accounting.
Always keep documents and receipts for reporting purposes.

Frequently asked questions

Question: Do I have to pay taxes if I own real estate but do not live in Georgia?
Answer: Yes, property tax is payable regardless of your residency status, while income tax is payable only on income earned in Georgia.

Question: Is there inheritance tax?
Answer: There is no inheritance tax in Georgia.

Conclusion

Georgia’s tax system is beneficial for residents, investors, and entrepreneurs. Understanding all types of taxes and available benefits will help you plan your finances and investments as effectively as possible.