Double Tax Treaties and Crypto: What Applies in Georgia?
- Tinatin Tolordava
- Oct 3
- 3 min read
Table of contents
Why Double Tax Treaties Matter for Crypto Businesses
Running a crypto business across borders means one thing: tax complexity. Nobody wants to pay tax twice on the same income - once in the country where you earn it and again where your company is based. That’s where double tax treaties (DTTs) come in.
Georgia, now on the radar as one of the most crypto-friendly countries, has signed more than 50 double tax treaties worldwide.
For companies and individuals in the crypto sector, this network matters because it determines where income is taxed and how much you actually keep.
How Double Tax Treaties Work in Practice
A double tax treaty defines which country has the right to tax certain types of income: salaries, dividends, business profits, or capital gains. For crypto businesses, the two most important categories are:
Business income (profits from crypto trading, Web3 services, mining, iGaming).
Dividends or distributions paid from your Georgian company to foreign shareholders.
Georgia’s treaties typically allocate taxation rights so that:
Profits are only taxed in Georgia if the business has a permanent establishment there.
Dividends may be taxed at reduced rates, often lower than the standard 5% dividend tax Georgia applies locally.
This creates a highly favorable situation for foreign crypto founders who use Georgia as their base but serve global clients.
Crypto in Georgia: Where Do Double Tax Treaties Apply?
Let’s break it down:
Trading crypto on foreign exchanges
If you’re a Georgian tax resident trading on Binance or Coinbase, those gains are typically foreign-sourcedand not taxed in Georgia.
If your home country has a treaty with Georgia, it reduces the chance of your gains being taxed again there.
Operating a Georgian crypto company
Registering as an LLC or International Company in Georgia means profits are only taxed when distributed.
With DTTs, foreign shareholders can often claim reduced withholding tax or exemptions on dividends.
Mining or staking income
If structured as exports of services (for foreign clients), this income is usually tax-free in Georgia. Double tax treaties ensure you’re not taxed again abroad.
Why This Is a Big Advantage for Crypto Businesses
Without treaties, crypto companies risk double taxation. Imagine a DAO developer based in France getting paid through a Georgian company. Without a treaty, France might claim income tax while Georgia applies corporate or payroll tax.
With a treaty in place, tax is paid once, at the lower treaty rate. And because Georgia already offers:
0% corporate tax under Virtual Zone status,
5% corporate tax under International Company status,
1% turnover tax for registered contractors,
…the effective rate for crypto businesses is already among the lowest globally.
How Gegidze Helps Navigate Double Tax Treaties
Understanding treaties can be complex. That’s why Gegidze crypto services steps in:
Ensuring your crypto payroll and company structure make the most of Georgia’s treaty network.
Filing paperwork so foreign shareholders claim reduced withholding taxes on dividends.
Setting up EOR payroll or Individual Entrepreneur status so employees and contractors get the lowest possible rates without triggering double taxation.
With Gegidze, crypto businesses don’t just benefit from Georgia’s low taxes. They also avoid the traps of paying tax twice.
Conclusion: Georgia Offers Clarity and Savings
So, what applies in Georgia? If your country has a double tax treaty with Georgia, you can confidently run a crypto business here, knowing your income won’t be taxed twice. Pair that with Georgia’s 0–5% corporate taxes, 1% contractor tax, and no VAT on crypto conversions, and the savings add up fast.
Ready to optimize your crypto business in Georgia and leverage double tax treaties for maximum benefit?
Book a free consultation with Gegidze today and ensure your global crypto operations stay compliant, legal, and tax-efficient.
Frequently asked questions (FAQ)
Does Georgia have double tax treaties that apply to crypto businesses?
Yes. Georgia has signed more than 50 double tax treaties. These treaties help ensure that income from crypto activities such as trading, mining, or blockchain services is not taxed twice in Georgia and the partner country.
How do double tax treaties affect dividends from a Georgian crypto company?
Foreign shareholders of a Georgian LLC or International Company can benefit from reduced withholding tax on dividends under a double tax treaty. This means less tax when profits are distributed abroad, making Georgia attractive for crypto founders and investors.
Do double tax treaties apply to individuals trading crypto in Georgia?
Yes. If you are a Georgian tax resident trading crypto on foreign exchanges, your gains are usually tax-free locally. With a treaty in place, your home country is less likely to tax those same gains again, protecting you from double taxation.
