Crypto Tax in Georgia Explained — and How Gegidze Optimizes It for You
- Tinatin Tolordava
- Nov 24
- 9 min read
Table of contents
Introduction
Georgia has quickly become one of the most attractive locations for foreign companies paying teams in crypto.
While countries around the world struggle with crypto regulations, Georgia has streamlined its system, making it one of the easiest and most tax-efficient places to operate in the crypto space.
Crypto tax in Georgia is one of the most appealing benefits. With a territorial tax system and 0% tax on foreign-sourced crypto profits, Georgia allows businesses and individuals to maximize their earnings without worrying about excessive taxation.
For foreign companies, paying employees in crypto can be complex.
Without the right system in place, companies can quickly run into compliance and tax issues. That’s where Gegidze crypto services come in.
Gegidze handles everything from crypto-to-fiat conversion to tax filing, ensuring that businesses stay compliant with Georgian tax law while optimizing payroll costs.
In this blog, we’ll break down crypto tax in Georgia, highlight the tax advantages of operating in Georgia, and explain how Gegidze optimizes payroll for foreign companies, making it simple to pay teams in crypto legally and efficiently.
Understanding Crypto Tax in Georgia
Georgia’s approach to crypto tax is simple, transparent, and highly advantageous for foreign businesses. Let’s break it down:
1. 0% Tax on Crypto Trading Gains
In Georgia, crypto trading tax is almost nonexistent for individuals. If you’re trading crypto on international exchanges and your profits come from foreign-sourced income, you pay 0% tax.
This means that whether you’re a casual crypto trader or a business operating on the blockchain, Georgia provides a tax-free environment for foreign crypto trading profits.
2. No VAT on Crypto-to-Fiat Conversions
Converting crypto to Georgian Lari (GEL) or any other fiat currency is VAT-free in Georgia. This exemption significantly lowers transaction costs for businesses, especially those in Web3, iGaming, or crypto exchanges.
For foreign companies handling payroll or processing payments in crypto, this makes a huge difference. You won’t face the typical VAT burden that exists in other countries, like the EU or the US.
Gegidze crypto services help by ensuring that all conversions are handled correctly and in compliance with Georgian tax laws.
3. Corporate Tax Rules for Crypto Businesses
Georgia’s corporate tax system is unique and extremely advantageous for businesses that want to reinvest their profits. Here’s how it works:
Corporate tax is only paid when profits are distributed.
If profits are retained and reinvested in the business, no corporate tax is due.
This is particularly beneficial for crypto companies, especially those building out their infrastructure or developing Web3 projects. You can reinvest your earnings without worrying about hefty corporate taxes.
4. No Capital Gains Tax on Crypto
When individuals sell crypto or realize capital gains on their crypto holdings, Georgia imposes no capital gains tax as long as the income is from foreign sources.
For foreign crypto traders, this means you can buy and sell crypto without triggering capital gains taxes, making Georgia one of the best places for long-term crypto investors and businesses alike.
Key Tax Benefits for Crypto Companies in Georgia
Georgia offers several tax regimes that can dramatically reduce your tax burden and make it easier to pay employees in crypto legally. Let's look at the primary tax benefits available:
1. Virtual Zone Crypto Georgia
If your business qualifies for Virtual Zone status, you get 0% corporate tax on income earned from foreign clients.
Benefits for crypto businesses:
0% corporate tax on foreign-sourced IT and blockchain revenue.
No VAT on exported services.
Ideal for Web3 startups, blockchain development companies, and crypto service providers.
Gegidze helps companies apply for Virtual Zone status, ensuring that you can benefit from tax-free earnings while paying your team legally and efficiently.
2. International Company Georgia
The International Company status is available for larger companies or those needing a physical presence in Georgia. With International Company Georgia, your company benefits from:
5% corporate tax on distributed profits.
0% dividend tax for shareholders.
5% payroll tax on employee salaries.
This is perfect for crypto exchanges, iGaming platforms, and companies that need both local registration and global legitimacy. If you want to run a crypto business that needs more formal registration and local presence, International Company status helps lower the tax load while maintaining full compliance.
3. Free Industrial Zone Mining Georgia
For crypto mining in Georgia, setting up in Free Industrial Zones (FIZs) gives you a powerful set of benefits:
0% corporate tax on all mining profits.
No VAT on any goods or services outside Georgia.
No import duties on mining rigs and equipment.
Special electricity pricing that supports energy-intensive operations.
This is ideal for large-scale mining operations looking to reduce their tax burden and import equipment at a lower cost. For mining companies, FIZs are a game-changer.
How Gegidze Optimizes Crypto Payroll for You
Paying your global team in crypto doesn’t need to be complicated. In fact, Gegidze crypto services make it seamless and compliant. Here’s how:
1. Employer of Record (EOR) for Employees
Through EOR Georgia, Gegidze becomes the legal employer for your team. This means:
Employees pay just 5% income tax on their salaries.
Gegidze files all necessary payroll taxes with the Georgian Revenue Service.
Full compliant contracts and employment records are handled by Gegidze, ensuring workers have legal documentation for Georgia visas, mortgages, and more.
This model works well for Web3 teams, iGaming staff, or any business that needs a formal, stable payroll system.
2. Contractor Registration with Individual Entrepreneurs (IE)
For contractors, Gegidze registers them as Individual Entrepreneurs (IEs). This enables:
1% turnover tax up to GEL 500,000.
Contractors handle their own tax filings, simplifying payroll for DAOs and freelancers.
Contractors can easily receive payments in crypto and convert them to GEL.
This setup is perfect for DAOs, Web3 developers, or iGaming freelancers. It ensures contractors get paid legally while keeping more of what they earn.
3. Crypto-to-Fiat Conversion at 1.2–1.5%
Gegidze offers low conversion fees (1.2–1.5%) when converting crypto to GEL. This means businesses save on conversion costs compared to other services.
This rate is far lower than what traditional crypto exchanges charge, and it ensures that employees and contractors receive more of their salary while staying compliant.
4. Compliance with Georgian Law
Gegidze crypto services ensure all AML and KYC checks are done properly before any crypto-to-fiat transactions. This guarantees smooth operations without delays, banking issues, or compliance risks.
With Gegidze, crypto payroll in Georgia becomes a smooth, legally-compliant process.
Global Payroll Comparison: Why Georgia Is the Best Choice for Crypto Companies
When choosing a jurisdiction for crypto payroll, businesses often compare Georgia with other popular tax-friendly jurisdictions like Estonia, Portugal, and the UAE. Here’s how Georgia stands out:
Georgia vs. Estonia
Estonia has a similar tax model but higher corporate tax (20%) on distributed profits.
In Estonia, crypto payroll is taxed at the standard income tax rates (up to 20%).
In Georgia, Gegidze's services help companies reduce payroll tax burdens by applying the 5% tax rate under certain conditions for local employees who qualify for special statuses (such as Virtual Zone or International Company), with proper structuring.
So, the 5% tax is available under specific conditions such as:
International Company status: For companies registered in Georgia, employees may enjoy tax reductions (including on salaries).
Virtual Zone status: A special tax regime where companies focusing on IT and blockchain services may have different payroll tax benefits.
To be clear, the default payroll tax for employees in Georgia is 20%, but through specific tax statuses or using services like Gegidze, you can reduce tax burdens effectively.
Georgian companies can also benefit from Virtual Zone status (0% corporate tax on foreign IT services), a major advantage over Estonia’s taxation system.
Georgia vs. Portugal
Portugal offers a tax exemption on crypto capital gains, but it lacks the clear corporate tax incentives for crypto businesses that Georgia offers through International Company and Free Industrial Zone status.
Crypto payroll in Georgia is simpler with clear tax rates and benefits like 1% contractor tax under IE status, compared to Portugal, where tax benefits depend on individual circumstances.
Georgia vs. UAE
The UAE offers zero corporate tax, but establishing operations is costly and can take time.
Georgia offers faster company registration, low-cost LLC setup, and clear payroll regulations. Plus, Gegidze crypto services handle all compliance and tax filings for global businesses.
Conclusion
Compared to these jurisdictions, Georgia offers a more predictable, simpler process with faster company registration and fewer bureaucratic hurdles. It’s a fantastic location for foreign crypto businesses looking to scale.
Industry-Specific Advantages of Georgia's Crypto Tax System
Georgia isn’t just beneficial for crypto payroll: it’s an ideal jurisdiction for various crypto-related industries. Let’s dive into how specific sectors benefit from the country’s tax-friendly environment.
Web3 Startups and Blockchain Development
For Web3 companies, Georgia offers 0% corporate tax on foreign-sourced revenue through Virtual Zone status.
Tax benefit: 0% corporate tax for international blockchain projects.
Payroll: Employees taxed at just 5% and contractors at 1%.
Additional benefits: No VAT on exports, meaning blockchain-based services sold abroad are not taxed.
Web3 startups can move quickly, reinvest earnings, and pay teams in crypto legally without worrying about complex tax filings. Gegidze handles the entire payroll process.
DAOs and Decentralized Projects
For Decentralized Autonomous Organizations (DAOs), Georgia offers an easy solution for paying contributors while maintaining legal compliance.
Contractor model: Contributors can be registered as Individual Entrepreneurs (IEs) and pay just 1% turnover tax up to GEL 500,000.
Payroll: Payouts to DAO members are tax-efficient and completely legal.
With Gegidze, DAOs can send crypto for work completed, converting it to GEL at a low rate, and ensuring that contributors get official tax records for their work.
iGaming Companies
iGaming platforms operating in Georgia can take advantage of the export of services rule — meaning 0% VAT on revenue earned from foreign players.
Payroll: 5% tax for employees, 1% turnover tax for contractors.
Gaming revenue: No VAT on foreign crypto transactions.
This makes Georgia a perfect location for iGaming companies that rely on crypto payments. They can pay employees, manage contractors, and streamline revenue without paying VAT or corporate tax on foreign operations.
Crypto Mining Operations
For crypto mining businesses, Free Industrial Zones (FIZs) in Georgia offer a completely different advantage:
0% corporate tax on mining profits.
No VAT on goods and services provided outside Georgia.
No import duties on mining rigs, servers, and equipment.
Gegidze makes it easy for mining companies to operate tax-efficiently by managing payroll through Georgia’s Free Industrial Zones. This allows mining companies to reinvest profits, import equipment tax-free, and pay employees and contractors at the most favorable tax rates.
Why Gegidze Is the Key to Optimizing Crypto Payroll and Tax
Navigating Georgia’s crypto tax system can be tricky for foreign companies. Fortunately, Gegidze crypto services make everything easier by handling payroll, tax filings, and compliance.
Here’s how Gegidze optimizes crypto tax and payroll for you:
Crypto-to-fiat conversion: Gegidze manages 1.2–1.5% conversion rates, much lower than traditional exchanges, ensuring more salary for your team.
EOR services: Gegidze acts as your Employer of Record, ensuring full compliance for employees taxed at 5%and contractors taxed at 1%.
Tax filing and reporting: Gegidze handles Georgian tax filings for all payroll taxes, keeping your company compliant with AML/KYC requirements.
Special tax regimes: Gegidze helps your company apply for Virtual Zone, International Company, or Free Industrial Zone status for further tax optimization.
With Gegidze, your crypto payroll process is simple, legal, and tax-efficient.
Georgia offers crypto payroll solutions that are fast, efficient, and legal. With low tax rates, easy LLC setup in Georgia, and flexible global payroll solutions, it’s the perfect place to pay your team in crypto without complications.
Gegidze crypto services are here to help you set up compliant crypto payroll, optimize taxes, and scale globally without the headache.
Book a consultation with Gegidze today and discover how to manage your global crypto payroll legally, tax-efficiently, and effortlessly.
Frequently asked questions (FAQ)
Is crypto payroll legal in Georgia?
Yes, crypto payroll in Georgia is fully legal. While crypto in Georgia is not legal tender, salaries must be paid in Georgian Lari (GEL). Using a compliant intermediary like Gegidze crypto services, you can pay employees in crypto, ensuring the payroll is tax-compliant and processed correctly.
What are the tax rates for crypto payroll in Georgia?
For employees, payroll is taxed at just 5% income tax. For contractors registered as Individual Entrepreneurs (IEs), the tax rate is just 1% on turnover up to GEL 500,000. This makes crypto payroll in Georgia one of the most tax-efficient payroll systems globally.
How does Gegidze optimize crypto payroll and tax compliance in Georgia?
Gegidze optimizes crypto payroll by converting crypto to GEL at competitive 1.2–1.5% exchange rates and managing tax filings. With EOR services, employees pay only 5% tax, and contractors pay 1% turnover tax. Gegidze handles all compliance with Georgian tax laws, ensuring legal and tax-efficient payouts.
What are the tax benefits of operating in Georgia for crypto businesses?
Georgia offers significant tax benefits for crypto companies:
0% corporate tax on foreign-sourced income through Virtual Zone status.
5% corporate tax and 0% dividend tax with International Company status.
0% corporate tax and no import duties in Free Industrial Zones (FIZs) for mining operations.
Can I pay contractors in crypto through Gegidze in Georgia?
Yes, Gegidze allows businesses to pay contractors in crypto, converting it to GEL. Contractors registered as Individual Entrepreneurs (IEs) benefit from 1% turnover tax, keeping costs low while remaining compliant with Georgian tax law.
