Can Foreigners and Digital Nomads Register as I.E. in Georgia? Legal Considerations
- Tinatin Tolordava
- 3 days ago
- 10 min read
Table of contents
Introduction: Georgia’s Growing Appeal for Global Entrepreneurs
Over the past few years, Georgia has quietly become one of the most attractive destinations for freelancers, remote entrepreneurs, and digital nomads. Known for its simple tax system, low cost of living, welcoming visa policies, and strategic location between Europe and Asia, it offers serious advantages for those looking to build a flexible global business.
Among the many questions foreign entrepreneurs ask, one stands out. Can foreigners register, I.E., in Georgia? The answer is yes, and the process is surprisingly accessible.
In this article, we will explore how foreigners and digital nomads can legally register as Individual Entrepreneurs (IEs) in Georgia. We will break down the legal requirements, explain how the Georgian tax system works for IEs, review visa considerations, and point out key pitfalls to avoid.
If you are thinking about starting a business in Georgia or looking for a new base to grow your remote work income legally, Georgia is the ideal solution.
Can Foreigners Really Register as Individual Entrepreneurs?
The short answer is yes. Foreigners can register as Individual Entrepreneurs in Georgia without needing Georgian citizenship, permanent residency, or even long-term visas.
Georgia’s government has intentionally designed its business environment to be foreigner-friendly. The idea is simple. By encouraging international entrepreneurs, freelancers, and small business owners to establish a legal presence, Georgia benefits from an inflow of investment, innovation, and service exports.
Whether you are a freelancer offering web development, a consultant providing coaching services, or a remote agency owner, Georgia allows you to open a company in Georgia as an Individual Entrepreneur under the same conditions as local citizens.
There are no nationality restrictions, no minimum stay requirements, and no complex corporate structures needed. The IE model is intended to be fast, low-cost, and easy to maintain.
This openness is a big reason why thousands of digital nomads, consultants, and remote professionals have made the move toward company formation in Georgia style, rather than setting up expensive corporate structures in high-tax countries.
Key Legal Requirements for Foreigners Registering as I.E.
Although the process is accessible, there are still clear legal steps and requirements you need to follow when registering as an Individual Entrepreneur in Georgia. Here is what you need to know.
Required documents:
To register as an IE, you will need:
A valid passport
A Georgian legal address
A description of your business activity
If you are physically present in Georgia, you can visit any Public Service Hall and complete the registration process in person, often on the same day. If you are registering remotely, you will also need a Power of Attorney authorizing a local representative to act on your behalf.
The passport must be translated into Georgian and notarized. If you are appointing a representative, the Power of Attorney must be notarized and, in some countries, apostilled to be legally recognized in Georgia.
Business activity description:
Choosing the correct business activity description is critical because it affects your eligibility for Small Business Status, which offers a 1 percent tax rate instead of the standard 20 percent. Activities like IT services, education, marketing, and consulting are eligible. Activities like financial services and legal consulting are excluded.
Mistakes here can create serious tax consequences. Always double-check your business activity code against the approved list used in the Georgia tax system.
Legal address requirement:
You must provide a valid Georgian address for your business registration. This can be:
Your residential address in Georgia
A rented legal address from a service provider
It must be an address authorized for registration purposes, not a temporary hotel or Airbnb. Failing to use a proper address can cause problems during your Georgia business formation and later during tax filings.
Registration steps:
Prepare the notarized translation of your passport.
Choose a correct legal address and have it ready.
Apply at the Public Service Hall or authorize a local representative to do it for you.
Once approved, you receive your IE registration certificate and your personal Tax Identification Number (TIN).
You are then officially listed in the Georgia business entity search database, meaning your business is recognized by the government.
Remote registration option:
If you are not in Georgia, you can still complete your registration remotely. Many agencies assist foreigners by managing notarization, translation, Power of Attorney, and legal address services.
This makes starting a business in Georgia possible for digital nomads traveling elsewhere or entrepreneurs managing businesses across different regions.
Cost and time frame:
Registering as an Individual Entrepreneur typically costs between 50 and 100 GEL in government fees, plus any additional translation, notarization, or service provider fees if registering remotely. The whole process usually takes one to three business days if documents are prepared correctly.
Common mistakes to avoid:
Choosing an excluded business activity and losing Small Business Status eligibility
Using an invalid address and needing re-registration
Incomplete or improperly notarized documents are causing application rejections
Registering correctly ensures that you can immediately start operating, invoicing international clients, and accessing the financial advantages that Georgia’s system offers.
Georgia’s Tax System for Individual Entrepreneurs
One of the main reasons so many entrepreneurs and freelancers are registering in Georgia is the country's straightforward and attractive tax structure. Once your Individual Entrepreneur registration is complete, you can benefit from one of the lowest tax rates available globally.
How the Georgia tax system works for IEs:
Suppose you register as an Individual Entrepreneur and apply for Small Business Status (SBS). In that case, your tax obligation is reduced to 1 percent of your gross turnover, up to an annual cap of 500,000 GEL (about $180,000). This 1 percent replaces the standard 20 percent Georgia income tax that would otherwise apply.
If you earn more than 500,000 GEL within a calendar year, the excess amount is taxed at 3 percent instead of 1 percent. However, if you exceed the cap for two years in a row, you lose Small Business Status and revert to regular taxation rules.
Key points about taxation for IEs:
You declare your turnover monthly through the Revenue Service portal.
You must file an annual Georgia tax return (Form 500).
If your revenue is zero for a month, you still must submit a zero declaration.
VAT (Value-Added Tax) only applies if you cross a separate annual turnover threshold of 100,000 GEL related to local Georgian clients or services.
Dividends and corporate taxes do not apply to IEs unless they transition into a corporate entity.
The Georgian government created this structure specifically to attract small businesses, freelancers, and service-based entrepreneurs. It is a clean, straightforward model compared to the layered and confusing systems in many other countries.
How tax residency affects your obligations:
It is important to understand that registering as an Individual Entrepreneur does not automatically make you a tax resident of Georgia. You only become a tax resident of Georgia if you spend more than 183 days inside the country within any 12 months. If you do become a tax resident, you must declare your global income, not just your Georgian-sourced earnings.
However, Georgia has favorable policies even for tax residents. Under most double taxation agreements and local interpretations, foreign-source income may remain untaxed if structured correctly. Consulting with a local tax advisor is recommended if you plan to stay long-term.
Comparing Georgia’s taxes to other countries:
When you compare the Georgia tax percentage for Individual Entrepreneurs against freelancing tax rates in Europe, North America, or Australia, the difference is striking. In Germany or the UK, self-employed workers might face 30 to 45 percent effective tax rates. In Georgia, you pay just 1 percent, as long as you meet the SBS conditions.
This major advantage, combined with low administrative costs and fast digital filings, makes Georgia’s system ideal for remote workers and global entrepreneurs.
Visa, Residency, and Tax Residency Considerations
Understanding Georgia’s visa and residency rules is important if you plan to live in the country while running your business. While registering as an IE is easy, staying long-term requires knowing a few essential points.
Do you need a visa to register or stay?
Do I need a visa for Georgia to register as an Individual Entrepreneur? The answer for most people is no. Georgia allows citizens of over 95 countries to enter visa-free and stay for up to 365 days without any additional paperwork. This includes citizens from the United States, European Union countries, Canada, Australia, and many others.
If you are from a country not eligible for visa-free access, you can apply for a Georgia e-visa online. The process is fast, and the approval rate is high.
Longer stays and digital nomad options:
If you want to stay beyond 365 days or formalize your stay, you have options:
Georgia offers a special Georgia digital nomad visa called "Remotely from Georgia."
Applicants must show proof of remote work or business ownership and a minimum income of approximately $2,000 per month.
This visa grants legal residence for up to one year, with the possibility of renewal.
You can also extend your stay by leaving Georgia briefly and re-entering under the visa-free regime, although this tactic is better suited to travelers rather than residents managing serious business operations.
Becoming a tax resident in Georgia:
If you spend more than 183 days in Georgia during any 12 months, you automatically become a tax resident. This triggers obligations under the Georgia tax system to declare your global income.
Many entrepreneurs embrace tax residency in Georgia because, even as a resident, the tax system remains far simpler and cheaper than in their home countries. However, careful planning is needed if you have income from multiple jurisdictions or need to claim benefits under double taxation treaties.
Cost of living and lifestyle factors:
Georgia is not just easy legally, it is also extremely livable. The cost of travel and monthly living expenses is low. In Tbilisi or Batumi, a freelancer can live comfortably for $1,000 to $1,500 per month, including rent, utilities, internet, food, and entertainment.
Georgia is known for being welcoming to foreigners. The question Is Georgia safe to travel is often asked by newcomers, and the answer is a confident yes. The country has a very low violent crime rate, particularly toward foreigners and tourists.
In terms of daily life, you will find fast internet, a vibrant cafe culture, a growing startup scene, and easy access to nature for hiking, skiing, and exploration. Georgia truly offers a balanced lifestyle for digital nomads and entrepreneurs who want more than just tax savings.
Practical Advantages for Digital Nomads
Beyond the legal and tax benefits, registering as an Individual Entrepreneur in Georgia offers some practical advantages that make it perfect for the digital nomad lifestyle.
Simple and fast banking:
Once registered, you can open a Georgian bank account easily, often with online banking in English. This allows you to invoice international clients, accept payments in different currencies, and manage finances smoothly from anywhere.
Credibility with international clients:
Having a registered business in a stable country with a transparent tax system builds trust with clients. Instead of operating as an informal freelancer, you can issue professional invoices with an official Georgian Tax ID number, improving your business reputation globally.
Minimal administrative burden:
Compared to running a company in the United States, Germany, or the UK, running an IE in Georgia involves very little paperwork. Simple monthly declarations and one annual Georgia tax return are all you need to stay compliant.
Mobility and flexibility:
Since you are not tied to a heavy physical presence, you can still travel extensively while maintaining your Georgian business registration. Georgia’s system is built for flexibility, fitting the lifestyle of remote entrepreneurs who value freedom over fixed office setups.
Affordability and quality of life:
With low living costs, fast internet, modern infrastructure, and growing expat communities in cities like Tbilisi and Batumi, Georgia provides a comfortable base without the price tag associated with other nomad hubs like Lisbon, Barcelona, or Bali.
In short, Georgia offers a rare combination of legality, lifestyle, and low costs that make it one of the best places today to establish a lightweight international business base.
Common Pitfalls to Avoid
Even though registering as an Individual Entrepreneur in Georgia is relatively simple, there are a few common mistakes foreigners and digital nomads should be careful to avoid.
Choosing the wrong business activity description
Not every business activity qualifies for the 1 percent Small Business Status tax rate. Activities like financial consulting, gambling services, or legal services are excluded. If you choose the wrong category at registration, you might be taxed at the full Georgia income tax rate of 20 percent. Always confirm your activity type matches the list eligible for Small Business Status.
Delaying the application for Small Business Status
Registering as an IE does not automatically enroll you in the 1 percent tax program. You must apply separately for Small Business Status after your registration. Waiting too long means your early earnings might be taxed at the higher standard rate.
Failing to submit monthly turnover declarations
Even if you earn zero in a month, you must submit a declaration. Missing filings can result in administrative fines and potential loss of your Small Business Status. Filing is fast through Georgia’s online system, but it must be done consistently.
Misunderstanding residency rules
Registering an IE does not automatically make you a legal resident of Georgia. If you stay more than 183 days, you trigger tax residency obligations. Mixing up business registration and immigration law can cause major issues. Always understand how the tax residency rules apply to your situation.
Trusting unverified service providers
Due to the popularity of Georgia among freelancers, many new agencies offer registration help. Not all are reliable. Working with experienced, registered agents ensures your open company in Georgia is properly handled without mistakes that could cost you later.
Avoiding these common pitfalls makes your IE registration smooth and lets you fully enjoy Georgia’s unique benefits for global entrepreneurs.
Conclusion: Why Foreign Entrepreneurs Are Choosing Georgia
So, can foreigners register, I.E., in Georgia? Absolutely, and it is one of the smartest moves remote entrepreneurs and digital nomads can make today.
Georgia offers low-cost and straightforward business registration, one of the most favorable tax systems in the world, visa-free access for many nationalities, and a lifestyle that blends affordability, safety, and flexibility.
By registering properly, maintaining compliance with monthly and annual filings, and understanding the key rules around residency and tax obligations, you can build a legal, stable international business base.
Contact Gegidze today and book your free consultation to learn more about how to reduce your tax burden, simplify your operations, and gain more personal freedom. Thousands of remote entrepreneurs have already made the move. You can be next.
Frequently asked questions (FAQ)
Can foreigners register as Individual Entrepreneurs in Georgia?
Yes, foreigners can register as Individual Entrepreneurs without Georgian residency or citizenship, either in person or remotely through a legal representative.
