Crypto Business Setup in Georgia: Legal, Tax, and Compliance Guide
- Tinatin Tolordava
- Sep 21
- 8 min read
Table of contents
Why Georgia is the Ideal Location for Crypto Businesses
If you're running a crypto business or thinking of setting one up, you’ve probably heard about the massive tax benefits of countries like Estonia, Portugal, or the UAE.
But there’s a quiet contender that’s been quietly stealing the spotlight: Georgia.
Why?
Because crypto in Georgia is not just legal, it’s super tax-efficient, with simplified processes for crypto business setup, paying employees in crypto, and tax optimization.
Whether you're launching a Web3 startup, expanding your crypto exchange, or building crypto mining operations, Georgia has become the go-to place for crypto businesses worldwide.
Let’s cut through the noise and explore why Georgia is the ultimate crypto destination and how Gegidze can help you streamline crypto payroll and tax compliance from day one.
Legal Requirements for Setting Up a Crypto Business in Georgia
Easy Business Registration: Georgia Makes It Simple
Starting your crypto business in Georgia is quick and straightforward.
You can set up an LLC or an International Company in just 1–2 days. Unlike other jurisdictions that require a lengthy approval process, Georgia’s company registration is designed for efficiency, especially for foreign companies looking to scale.
No need for a physical presence in Georgia either.
As a foreign owner, you can set up your business remotely without having to leave your country, making it perfect for global crypto enterprises.
Gegidze takes the heavy lifting out of company registration by guiding you through every step of the process, ensuring everything is legally compliant and optimized for tax benefits.
Do You Need a VASP License?
Here’s the kicker: Not every crypto business in Georgia needs a VASP license.
If you’re not running a crypto exchange, custodial wallet service, or platform that holds client funds, then you don’t need to worry about it.
Gegidze’s crypto services can help you avoid unnecessary licensing by structuring your crypto payroll and financial operations in a way that keeps you compliant without the need for VASP registration.
Now, isn’t that a win?
Tax Benefits of Starting a Crypto Business in Georgia
Let’s talk numbers, shall we?
If you want to pay employees in crypto, save on corporate tax, and keep more of your profits, Georgia is the place to be. The tax benefits for crypto businesses here are beyond impressive, and here’s why:
1. Corporate Tax - A Major Advantage
Corporate tax in Georgia is structured to favor reinvestment. Here’s the deal:
0% corporate tax on foreign-sourced income if you qualify for Virtual Zone status.
5% corporate tax for businesses with a physical presence in Georgia under International Company status.
This means if you’re focused on Web3 development or crypto services, you can keep 100% of your earnings within the company and reinvest them without worrying about corporate taxes.
Plus, International Company status keeps dividends tax-free and payroll at 5%.
2. Payroll Tax - Paying Employees in Crypto Just Got Easier
In Georgia, employees are taxed at just 5% of their income. Let that sink in: 5% tax on crypto payroll, which is significantly lower than the tax rates found in most European and US jurisdictions.
Here’s how Gegidze crypto payroll optimizes your situation:
Employees: They pay just 5% income tax (which is ridiculously low compared to 20–40% in many countries).
Contractors: By registering contractors as Individual Entrepreneurs (IEs), they can pay just 1% turnover tax(up to GEL 500,000).
Let’s be honest: who wouldn’t want to operate in a jurisdiction where your crypto payroll is optimized for maximum savings?
3. No VAT on Crypto-to-Fiat Conversions
No VAT on crypto conversions?
Yes, you heard that right! Georgia’s tax system for crypto is designed to keep businesses competitive.
When you convert crypto to GEL or any other fiat currency, you’re not hit with the usual VATcharges that come with these types of transactions in other countries.
This makes paying your global team even easier and more efficient, without the added costs of VAT.
With Gegidze crypto services, crypto-to-fiat conversions are smooth, cost-efficient, and completely compliant with Georgian tax laws.
Special Tax Regimes for Crypto Businesses in Georgia
Virtual Zone: 0% Corporate Tax on Foreign Income
The Virtual Zone status in Georgia is a game-changer for companies involved in blockchain and crypto services.
0% corporate tax on foreign-sourced income makes it ideal for companies that focus on exporting crypto services.
If your company is building Web3 solutions or offering blockchain-based services globally, Virtual Zone status ensures your earnings stay tax-free.
International Company: 5% Corporate Tax, 0% Dividend Tax
If you need a formal presence in Georgia but still want to pay low taxes, International Company Status Georgia is the perfect fit.
5% corporate tax on profits.
0% dividend tax, meaning you can pay shareholders without losing a portion to taxes.
Employees are taxed at just 5% payroll tax.
This makes it the ideal option for crypto exchanges, Web3 projects, and any company with international clients but needing to maintain a local presence.
How Gegidze Helps Simplify Crypto Business Setup in Georgia
Remote Bank Account Setup in 3–5 Days
Setting up a Georgia bank account remotely in just a few days means you can start crypto-to-fiat transactions without delay. This is a huge benefit for foreign companies with global teams.
EOR Services for Crypto Payroll
Through Employer of Record (EOR) services, Gegidze helps companies hire employees in Georgia and pay them legally in crypto.
Employees are taxed at 5%.
Contractors can benefit from the 1% tax regime by registering as Individual Entrepreneurs (IEs).
Gegidze makes paying your global team in crypto easy, compliant, and tax-optimized.
AML/KYC Compliance Made Easy with Gegidze
Navigating crypto regulatory compliance can be daunting, especially when it comes to AML (Anti-Money Laundering) and KYC (Know Your Customer) requirements.
The risk of non-compliance can lead to frozen transactions, bank account blocks, and even legal issues.
That’s where Gegidze steps in. Gegidze crypto services handle all AML/KYC checks, ensuring your crypto-to-fiat conversions comply with Georgian law.
This makes it easy for you to pay employees in crypto, convert payments into GEL, and stay compliant with no added stress.
With Gegidze, you can set up your crypto business in Georgia without leaving your country and have everything from AML/KYC to tax filings taken care of seamlessly.
Industry-Specific Use Cases for Crypto Businesses in Georgia
Web3 Startups: Scale Your Global Team with Ease
For Web3 startups, Georgia’s crypto tax benefits are hard to ignore.
With Virtual Zone status, you can benefit from 0% corporate tax on foreign-sourced income. And with Gegidze crypto payroll, paying your team in crypto is simplified. Employees are taxed at 5%, and contractors at just 1% under the Small Business Status.
Whether you’re developing decentralized apps (dApps), working on smart contracts, or building your own blockchainsolution, Georgia’s tax-friendly environment and Gegidze’s seamless payroll services give you the competitive edge to grow faster and more efficiently.
DAOs: Make Contributor Payouts Legal and Easy
For Decentralized Autonomous Organizations (DAOs), managing payouts to contributors can be complex, especially when trying to keep everything compliant.
By registering contributors as Individual Entrepreneurs (IEs) in Georgia, DAOs can pay them legally and at a 1% turnover tax rate, ensuring legal recognition and tax optimization.
Gegidze’s services make this process smooth by helping with contractor registration, tax filings, and crypto-to-fiat conversion, so DAOs can focus on governance while keeping contributors happy with fast, legal payouts.
iGaming: Pay Your Global Teams with No VAT Burden
The iGaming industry is one of the biggest adopters of crypto payments, as it allows for faster transactions and lower fees. However, handling payroll and staying compliant with tax rules in different countries can be challenging.
In Georgia, iGaming platforms benefit from the 0% VAT on international revenue rule, while Gegidze crypto payroll ensures all payments are processed in GEL and taxed at the local 5% rate for employees, or 1% for contractors.
Using Gegidze ensures that your team is compliant and can receive crypto payouts efficiently and legally.
Crypto Mining: Optimize Operations with FIZs and Gegidze
If you’re running a crypto mining business, Georgia offers an unmatched tax advantage through Free Industrial Zones (FIZs).
These zones provide 0% corporate tax on mining profits, no VAT, and no import duties on mining rigs and equipment.
This is ideal for large-scale mining operations looking to save on capital costs and taxes.
With Gegidze’s services, crypto miners in Georgia can also set up compliant payroll systems, ensuring employees and contractors are paid legally in crypto.
By registering as Individual Entrepreneurs or using Gegidze’s Employer of Record (EOR), crypto mining companies can stay compliant, streamline payroll, and benefit from Georgia’s crypto tax advantages.
How Gegidze Optimizes Crypto Payroll and Tax Compliance
So, how does Gegidze make crypto payroll and tax compliance easy for foreign companies?
1. Fast, Remote Setup
Setting up a Georgia bank account remotely in 3–5 days makes it easy for foreign companies to process crypto-to-fiat conversions and pay teams quickly. Gegidze handles all the paperwork, allowing you to focus on your business without the hassle of dealing with local regulations.
2. Optimized Payroll for Employees and Contractors
Employees are onboarded with EOR services and taxed at 5%.
Contractors are registered as Individual Entrepreneurs (IEs) and pay just 1% turnover tax.
Gegidze ensures that both employees and contractors get paid legally and efficiently, with crypto-to-fiat conversioncompleted at a low 1.2–1.5% exchange rate.
3. Full Compliance
Gegidze crypto services handle all AML and KYC compliance, ensuring that your business stays within the bounds of Georgian law while processing crypto payments. Tax filings are handled automatically, and payroll reports are submitted directly to the Georgian Revenue Service.
4. Specialized Tax Benefits
Depending on your business model, Gegidze will help you apply for the appropriate tax regime (Virtual Zone, International Company, or FIZ) to maximize tax benefits.
Start Your Crypto Business in Georgia Today
The crypto-friendly environment in Georgia offers unbeatable tax incentives, low compliance hurdles, and a streamlined process for global crypto businesses.
Whether you’re launching a Web3 startup, scaling an iGaming platform, or building crypto mining operations, Georgia is your gateway to success.
Gegidze makes it easy to set up crypto payroll, navigate tax laws, and stay compliant with Georgian regulations. Let us help you grow your crypto business in Georgia with minimal friction.
Book a consultation with Gegidze today to begin your crypto business setup and benefit from Georgia’s tax advantages!
Frequently asked questions (FAQ)
How does Georgia benefit crypto businesses in terms of taxes?
Georgia offers 0% corporate tax on foreign-sourced income through Virtual Zone status, and 5% corporate tax with International Company status. Additionally, businesses can benefit from no VAT on crypto-to-fiat conversions and 5% payroll tax for employees, making Georgia one of the most tax-efficient locations for crypto businesses.
Do I need a crypto license to operate in Georgia?
You only need a VASP license in Georgia if you run a crypto exchange, custodial wallet service, or a platform that holds client funds. For most crypto payroll and crypto business operations, Georgia allows you to avoid a license and still be fully compliant with tax laws.
What is the tax rate for employees and contractors in Georgia?
In Georgia, employees pay 5% income tax, which is significantly lower than in most European or US jurisdictions. Contractors, registered as Individual Entrepreneurs (IEs), pay a 1% turnover tax on earnings up to GEL 500,000.
How does Gegidze optimize crypto payroll and tax compliance in Georgia?
Gegidze simplifies crypto payroll by providing Employer of Record (EOR) services for employees, ensuring compliance with Georgian tax laws. Contractors are registered as Individual Entrepreneurs and pay just 1% turnover tax. Gegidze also handles AML/KYC compliance and crypto-to-fiat conversion at a low 1.2–1.5% exchange rate.
How do I set up a crypto business in Georgia?
Setting up a crypto business in Georgia involves registering as an LLC or International Company, choosing the right tax regime (Virtual Zone, FIZ, or International Company), and applying for crypto payroll solutions. Gegidze makes this process easy by handling registration, tax filings, and payroll, ensuring everything is tax-optimized.
