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Table of contents TL;DR How Georgia's special tax regimes work Micro business status: 0% tax for the smallest operators Small Business Status (SBS): the georgia 1% tax regime Virtual Zone status: 0% CIT for IT companies Fixed tax regime: sector-specific flat rates Choosing the right regime: a decision framework Compliance obligations across regimes Common mistakes and how to avoid them How Gegidze helps Final thoughts Frequently asked questions (FAQs) TL;DR Georgia has four m

TL;DR Georgian IT companies have two main preferential regime options: Virtual Zone status (VZS) and the International Company regime. Both offer significant tax advantages — but they are not interchangeable. VZS gives 0% corporate income tax and 0% VAT on qualifying IT export income. It has no employment requirements and works for lean, foreign-facing IT companies. The International Company regime gives 5% corporate income tax on qualifying income. It imposes minimum employm

TL;DR Under Georgian tax law, income classification is determined by the contract and invoice documentation, not solely by the client's country of incorporation or the founder's intention. For Virtual Zone companies, the contract must establish that the client is a foreign entity, the service is IT in character, and the service is delivered and received outside Georgia. Vague or generic invoices, "consulting fee," "monthly services," "project work", create an evidentiary gap

TL;DR Georgia Virtual Zone status (VZS) gives Georgian LLCs 0% corporate income tax on qualifying IT export income. SaaS companies can access this, but the income must be correctly structured and documented. SaaS subscription revenue from foreign clients qualifies as IT service income under VZS, provided the product is developed or maintained by the Georgian entity. Software license fees qualify when tied to the company's own intellectual property. Sub-licensing third-party s

Table of contents TL;DR. Free Industrial Zones in Georgia Explained Why Free Industrial Zones in Georgia Are Quietly Attracting Global Businesses What Is a Free Industrial Zone in Georgia? Major Free Industrial Zones in Georgia The Core Tax Advantage: How the 0% Tax Strategy Works VAT Georgia and Free Industrial Zones Why the Legal Structure Matters Banking and Compliance for FIZ Companies What Types of Businesses Actually Qualify for Free Industrial Zones? How a FIZ Company

Table of contents TL;DR – International Company Status (ICS) in Georgia Introduction: Why Georgia Is Becoming the Go-To Destination for IT and Maritime Firms Who Can Apply for International Company Status? ICS vs Other Business Structures in Georgia How to Apply for International Company Status in Georgia What About VAT? Understanding ICS VAT Implications Revocation of ICS Status: What You Need to Know How Gegidze Can Help You Apply for ICS The Smart Choice for IT and Maritim

Table of contents TL;DR What changed, what it fixes, and what it means for your setup Why the original law failed What the amendment actually changes What still requires a permit How Gegidze helps Final thoughts Frequently asked questions (FAQs) TL;DR The Georgian Parliament passed amendments on April 16th, 2026, that exempt most foreign founders, remote workers, and LLC directors from the labour permit that went live on March 1st. If you work exclusively for non-Georgian cli

Table of contents TL;DR Introduction What is Georgia tax residency? What is Georgian legal residency? Key differences: a side-by-side comparison The 183-day rule explained The HNWI route to Georgia tax residency Why the tax residency certificate matters How each status interacts with Georgian tax regimes Common mistakes and how to avoid them How Gegidze helps Final thoughts Frequently asked questions (FAQs) TL;DR Georgia tax residency and legal residency are two separate lega

Table of contents TL;DR – Permanent Establishment (PE) Risk Mitigation for Remote Teams Introduction: The Hidden Tax Risk of “Just Working From Your Laptop” What Is Permanent Establishment (PE)? How Does Permanent Establishment Affect Your Foreign Business? Key Triggers of Permanent Establishment Risk for Remote Teams Structuring Your Remote Team to Mitigate PE Risk Compliance and Documentation: Keeping Records to Protect Your Business Real-World Examples: PE Risk in Action H

Table of contents TL;DR. Introduction Why Reverse-Charge VAT Is the Quiet Cost of “Low-Tax Georgia” What Is Reverse-Charge VAT in Georgia? Who Must Apply Reverse-Charge VAT in Georgia What Counts as an “International Service” Under Georgian VAT Rules Reverse-Charge VAT vs VAT Registration in Georgia How Reverse-Charge VAT Works in Practice: Step by Step Reverse VAT for Non-VAT-Registered Businesses. The Costly Trap Why Reverse VAT Is a Banking and Compliance Issue Reverse-Cha

TL;DR A Georgian residence permit grants you the legal right to live in Georgia beyond the standard visa-free period. It is an immigration document, not a tax document. The most common grounds for a temporary residence permit are: company ownership, property ownership, employment, and investment. Applications are submitted to the Civil Registry Agency. Standard processing is 30 days; expedited processing takes 10 working days for an additional fee. A residence permit does not

Table of contents TL;DR. Why Your LLC Charter Can Make or Break Banking, Audits, and Control Why the LLC Charter Matters More Than Most Non-Resident Founders Realize What the LLC Charter Actually Is Under Georgian Law Why Default Charters Are Risky for Non-Resident Owners Why Banks Treat the Charter as a Compliance Document Core Charter Sections Banks Actually Care About Why This Matters Even More for Remote Owners Example Charter Clauses Georgian Banks Prefer Before vs After

Table of contents The Confusion Around “Business Expenses” in Georgia How Georgia’s 1% Small Business System Actually Works Why the 1% Turnover Tax Has No Expense Deductions Why Tracking Expenses Still Matters When Expense Deductions Become Available Common Myths About Deducting Expenses in Georgia Transition Planning: From 1% IE to LLC Mistakes IEs Make When Handling Expenses The Transition Threshold: When to Upgrade to LLC Preparing for Audits and Record Requests How Gegidz

Table of contents: Two Small Countries, One Big Question for Crypto Founders Legal Recognition of Crypto: The Core Difference Company Registration: Simplicity vs. Bureaucracy Tax Systems: The Deciding Factor Payroll and Contractor Tax VAT and Crypto Transactions Banking and Crypto-Fiat Integration Compliance: Stricter in Estonia, Simpler in Georgia Industry Use Cases: Who Gains the Most in Each Country A Founder’s Real-World Comparison Why Georgia’s Tax Regimes Outperform Est

Table of contents TL;DR Introduction The Tax Rate Nobody Wants to Pay How Georgia's Small Business Status Actually Works What Happens at 500,000 GEL: The Three Scenarios Legal Ways to Manage Your Turnover and Stay at 1% The 3% Rate: When It Applies and How Long You're Stuck With It The LLC Option: What Changes and What Gets Better The Virtual Zone Option: When Your Work Qualifies for 0% Common Mistakes Individual Entrepreneurs Make Around the Threshold How Gegidze Helps Indiv

Table of contents TL;DR. Which Regime Is Best for Your Tech Company Introduction. Why Most Tech Founders Choose the Wrong Tax Regime in Georgia A Reality Check. These Two Regimes Are Not Competing Incentives What Virtual Zone Status Actually Is What IT (International Company) Status Actually Is How Banks See These Two Regimes Comparison Table. Virtual Zone vs IT Company Status The Real Cost Difference Edge Cases, Switching Regimes, Audits, and Crypto Reality Switching from Vi

TL;DR. LLC vs. JSC in Georgia. Which One Should You Actually Choose? Choosing between an LLC and a JSC in Georgia is not just about company size. It’s about how your business earns, grows, and raises capital. LLCs are faster to register, easier to manage, and ideal for: Service businesses Bootstrapped startups Consulting, IT, and outsourcing companies Founders who plan to distribute profits JSCs are designed for: Startups raising external investment Equity-heavy structures Fi

Introduction Georgia's Virtual Zone status is one of the most powerful tax structures available to IT companies anywhere in the world. Zero percent corporate tax on foreign-sourced income. Zero VAT on exported services. No complex international reporting. For the right type of business, it is genuinely transformative. But it comes with conditions. And those conditions are not optional. Miss a monthly declaration. Let your certificate expire. Accept a payment from a Georgian c

Table of contents TL;DR Understanding International Company Status (ICS) What is International Company Status (ICS)? ICS Eligibility Requirements: The 2-Year Operational History Rule Local Staff Requirement for ICS Qualification Permitted Activities: Defining Your Business Operations in Georgia What Happens if Your Business Activity Changes? Applying for ICS Status: Step-by-Step Process How Gegidze Can Help You Navigate ICS Requirements A Powerful Tax Advantage for IT and Mar

Table of contents Why Georgia’s Virtual Asset Rules Matter More Than Ever How Georgia Legally Defines a Virtual Asset Why Virtual Assets Trigger Licensing in Georgia Why NFTs Are Not Automatically Virtual Assets in Georgia How Georgia Classifies CBDCs. Completely Separate from Virtual Assets Why Georgia Regulates NFTs and CBDCs Differently What This Means for Startups, Web3 Founders, Developers, and Investors NFT Classification Scenarios in Georgia. When an NFT Becomes a Virt