If your turnover stays under 500,000 GEL (≈€180,000) per year, you only pay 1% of revenue. No hidden profit tax. No dividend tax. Just one simple monthly payment.

Compare that with Romania, where crossing €20,000 in income suddenly makes you feel like you’re funding half the national budget. Georgia’s system was built for entrepreneurs, freelancers, and digital nomads who actually want to grow, not be punished for it.

Who actually qualifies for this? Could I register as a freelancer?

Absolutely.

If you’re a consultant, developer, designer, digital marketer, or small business owner, you can register as an Individual Entrepreneur (IE). The list of allowed activities is wide open, software development, consulting, even side gigs like photography. The only restrictions are on heavily regulated sectors like banking and insurance.

So yes, if you’re a one-person show running a remote business, you’re exactly who Georgia had in mind.

Do I have to move to Tbilisi to make this work?

Nope. The process is fully remote.

With a Power of Attorney and a notarized passport copy, Gegidze can register your IE and open your bank account in two to three weeks maximum. You don’t have to step on a plane unless you want to.

Speaking of banks, what about banking in Georgia?

This is where things get interesting.

Georgia’s banks are surprisingly modern and entrepreneur-friendly. You’ll get a multi-currency account (GEL, USD, EUR) plus both virtual and physical cards. And yes, the card can be mailed straight to Romania.

The main banks, Bank of Georgia and TBC, are known for 24/7 support, low bureaucracy, and accounts that actually work for international entrepreneurs.

Okay, but how do taxes actually get paid? Do I need to file endless forms?

No endless forms. Here’s how it works:

At the end of the month, you tell your accountant your revenue.
They prepare your declaration.
You log into your Georgian bank account and pay the 1% by the 15th of the following month.

Done. That’s the entire system.

Can I spend my income on both business and personal expenses?

Yes. One of the benefits of the Georgia 1% tax regime is its flexibility. You can cover both business and personal expenses without complex rules or endless documentation. That makes life easier for freelancers and digital nomads.

What about Romania, won’t they still want a piece of my income?

This is where it gets tricky.

Georgia has double taxation treaties with 50+ countries, but how Romania treats your Georgian income depends on local rules.

Some clients declare everything in Georgia and keep money there. Others transfer funds back to Romania and deal with their accountant.

If you transfer money as personal income, Romania may tax it again.

That’s why the safest path is: Georgia handles the setup, your local accountant handles the Romania side. Together, you’ll know exactly whether you’re covered or exposed.

What if I scale and outgrow the 1% regime?

That’s when Georgia’s other statuses come into play:

Virtual Zone → 0% corporate tax for IT companies with foreign clients.
International Company status → 5% corporate tax and 0% dividend tax for bigger IT and maritime businesses.
Standard LLC → 15% tax on distributed profits, still better than most EU regimes.

The system grows with you.

And invoicing? Do I need an official e-invoice system?

Nope. Georgia doesn’t force you into e-invoicing for international clients. Just issue your regular invoices, keep them in your records, and you’re good.

How fast can I start invoicing clients from Georgia?

Once your IE is registered and your bank account is open, you can start right away. That usually means about three weeks from start to finish if Gegidze handles the process.

What about payroll taxes if I hire employees in Georgia?

If you employ staff in Georgia, you’ll need to comply with local payroll rules.

That includes a 20% personal income tax and 2% pension contributions from both employer and employee. Gegidze helps entrepreneurs with payroll management in Georgia, ensuring you stay fully compliant.

How does Georgia tax residency affect entrepreneurs?

If you spend more than 183 days in Georgia in a calendar year, you automatically become a Georgia tax resident.

That means your worldwide income could become taxable in Georgia. Many digital nomads carefully plan their stays to balance Georgia tax residency rules with their home country’s tax obligations.

Are there IT-specific tax benefits in Georgia?

Yes. Georgia has special regimes for IT companies:

Virtual Zone Status Georgia: 0% corporate tax on foreign revenue and no VAT on digital services.
International Company status: 5% corporate tax on distributed profits and exemptions on dividends.

These IT tax exemptions in Georgia make the country highly attractive for software firms, SaaS providers, and blockchain startups.

How does Georgia compare to other tax-friendly countries?

Unlike many so-called tax havens, Georgia is transparent and compliant with FATCA and CRS reporting.

You can open real bank accounts, operate internationally, and grow without red flags. Compared to Romania, Bulgaria, or Western Europe, Georgia’s tax system is simpler, more flexible, and entrepreneur-friendly.

Why are Romanians (and other EU entrepreneurs) moving their taxes to Georgia?

In Romania: crossing €20,000 income means higher taxes, complicated KN codes, and limited activities.In Georgia: one broad activity code covers all your services. You pay 1% flat tax. That’s it.

No wonder more freelancers, small businesses, and remote workers are registering in Georgia every year.

Your next step

If you’re tired of watching taxes eat your revenue, Georgia is one of the easiest and most legal ways to lower your burden. The 1% IE regime is made for people like you.

Book your free consultation with Gegidze today and let’s set up your business in Georgia: fast, compliant, and ready to grow.