Relocation to Georgia: Legal Requirements and Practical Steps

Table of contents

TL;DR

Why Georgia: the tax environment that makes relocation worth it

Entry pathways: visa-free, e-Visa, and what each covers

Residence permits: types and criteria for foreign workers

The 2026 work permit reform: what changed and what it means

Employer obligations when relocating foreign staff

Step-by-step: from entry to full legal employment

Pitfalls and how to avoid them

How an EOR simplifies relocation compliance

How Gegidze Helps

Final Thoughts

Frequently Asked Questions (FAQs)

TL;DR

• Georgia is one of the most open markets in the region for international hiring and relocation: 90+ nationalities enter visa-free for up to 365 days, the tax system runs at a flat 20% income tax, and the overall corporate environment favors lean, compliant operations.

• From March 1, 2026, the rules changed materially. Any foreign national taking up employment in Georgia now requires a Special Labour Activity Permit before starting work , a formal Right to Work application submitted by the employer, not the employee.

• The Work Residence Permit (Labour Residence Permit) is the long-term residency mechanism tied to employment. It requires: the work permit, proof that the sponsoring entity has at least 50,000 GEL annual turnover per foreign employee, and a salary exceeding 5x the Georgian subsistence minimum (roughly 1,416 GEL net monthly).

• Georgia's tax advantages , 1% for Individual Entrepreneurs, 0% for Virtual Zone IT companies, 5% for International Company status employees , are real and available. But they require correct structuring from day one.

• The most common employer mistakes: assuming visa-free entry equals work authorisation, missing the 2026 work permit requirement, failing the residency financial criteria, and misclassifying employees as contractors.

• An EOR handles the full relocation stack: contracts, work permit applications, residence permit coordination, payroll, and ongoing compliance , without the client needing a Georgian entity.

• Penalties for non-compliance are actively enforced in 2026: 2,000 GEL per party per offence, doubling and tripling for repeat violations, with potential deportation and employer hiring bans.

Georgia attracts international companies and founders for concrete reasons: a flat 20% income tax, 0% corporate tax on retained profit for qualifying IT companies, 90+ nationalities entering without a visa for up to a year, and a growing professional talent base. Moving to Georgia or relocating team members here is operationally realistic in a way few markets offer.

The 2026 work permit reform changed the compliance picture. The informal era , where foreigners could work in Georgia on a visa-free tourist status indefinitely , is over. A proper permit system is now in place, with real enforcement, real fines, and a structured process that employers must navigate correctly. This guide covers every step: entry pathways, the new permit requirements, employer obligations, the relocation process from day one to full legal employment, the pitfalls to avoid, and how an EOR simplifies the entire stack.

Why Georgia: the tax environment that makes relocation worth it

Georgia's tax system is one of the clearest competitive advantages the country offers. Unlike most Western European jurisdictions, Georgia provides three distinct paths with dramatically different tax implications for IT companies and small businesses. Understanding which applies to a given employer or founder is essential before structuring any employment relationship. See Gegidze's full breakdown of Georgia's business tax system for the technical detail.

• Small Business Status (1% path): available to Individual Entrepreneurs with turnover up to 500,000 GEL (~$180,000). Certain professional services including consulting, legal work, and staffing are excluded. Revenue above 500,000 GEL is taxed at 3%.

• Virtual Zone Person (0% path): the structure for IT companies exporting software. 0% corporate income tax on profits from exported digital services, provided the product is created within Georgia and delivered to non-resident clients. Dividends taxed at 5% (reduced to 0% via applicable double tax treaties). This is one of the most competitive tech company tax regimes in the world, and Virtual Zone status requirements are straightforward to meet for qualifying IT firms.

• International Company Status (5% path): designed for larger IT firms with at least two years of operating experience. 5% corporate income tax and , critically for employer sponsorship , a 5% personal income tax rate for employees. Companies with International Company status are also exempt from the Labour Market Test in the 2026 work permit regime.

These structures are why Georgia has become a genuine operational base rather than just a destination, and why getting the employment structure right from the start matters for the overall tax picture.

Entry pathways: visa-free, e-Visa, and what each covers

Georgia's visa regime is among the most liberal in the world. Citizens of the United States, the United Kingdom, the European Union, Canada, Australia, Israel, Turkey, and more than 90 other countries can enter without a visa and stay for up to 365 calendar days. For many potential hires, this means the employee can simply arrive with a valid passport and begin the compliance process from inside Georgia.

For nationals not covered by the visa-free regime, Georgia offers an Electronic Visa (e-Visa) obtainable online before travel. e-Visas typically allow 30–90 day stays depending on nationality and are suitable for initial visits. They are not designed for long-term employment: if the plan is formal local employment, the next step after entry will be the work permit and residence permit process regardless of how the employee entered.

The critical point: entry and employment authorisation are separate. Entering Georgia is usually the easy part. The compliance work starts after entry if the foreign team member is going to be formally employed in Georgia long term.

Residence permits: types and criteria for foreign workers

Staying in Georgia beyond the initial allowed period , or taking up formal employment , requires a residence permit. The most relevant type for relocating employees is the Work Residence Permit (Labour Residence Permit).

Work Residence Permit criteria

• The sponsoring company's annual turnover must exceed 50,000 GEL per foreign employee hired. Two foreign employees require 100,000 GEL, and so on.

• The foreign employee's monthly salary must meet 5x the Georgian subsistence minimum for a working-age male , approximately 1,416 GEL per month net. Most skilled professional hires will easily exceed this threshold.

• A valid Special Labour Activity Permit (the new work permit) is required as a prerequisite from March 2026.

Standard duration: typically 1 year, renewable. IT professionals qualify for a 3-year permit under Georgia's dedicated IT pathway introduced in 2026, requiring two years of IT experience and approximately $25,000 annual income. After 6 years of continuous residency, permanent residency becomes available.

Other residence permit types

Investment residence permits are available for significant property purchases (above 100,000 USD, rising to 150,000 USD from March 2026) or direct investment. Short-term residence permits cover study and other specific situations. Georgian tax residency, which triggers after 183 days in a calendar year and determines worldwide income tax obligations , is a separate concept from residency for immigration purposes, though the two often overlap in practice for full relocations.

The residency permit and tax residency are not the same document. A person can be a Georgian tax resident after 183 days in a calendar year (affecting how their worldwide income is taxed) without holding a Georgian residence permit , and vice versa. Both have implications for employers, and both should be addressed in the relocation planning.

The 2026 work permit reform: what changed and what it means

Prior to March 1, 2026, Georgia had no formal work authorisation system for most foreign nationals. If someone had legal residency or was present on a visa-free stay, they could generally work without a specific work permit. This created the conditions that Georgian authorities estimated resulted in up to 250,000 unregistered foreign workers.

Government Resolution No. 70, signed February 20, 2026, established the "rulebook" for labour migration. The key change: employer sponsorship is now an active, administrative permit process rather than a passive consequence of hiring. The Right to Work permit must be obtained before any foreign national begins employment.

Feature	Before March 2026	From March 2026
Work authorisation	No formal system , visa-free status allowed de facto work	Special Labour Activity Permit mandatory before starting work
Labour Market Test	Not required	10-day Worknet vacancy posting required (exemptions apply)
Employer turnover requirement	Applies to residence permit only	Applies to both work permit and residence permit
IT professionals	Standard 1-year residence permit	Dedicated 3-year IT permit available
Penalties	Limited enforcement	2,000 GEL per party per offence, escalating for repeat violations
Reporting requirement	None	Contract changes and terminations must be reported within 5 days

There is a transition period until January 1, 2027 for foreign nationals already working in Georgia before March 2026. If you have existing foreign hires without permits, the window to regularise their status is open but not unlimited. Start the process now rather than at the deadline.

Employer obligations when relocating foreign staff

A Georgian entity or an EOR is mandatory

Foreign staff must be employed by a legal entity registered in Georgia. That means either your company must have its own Georgian entity , an LLC registered with the National Agency of the Public Registry , or you engage an EOR that employs the person through its own entity. There is no compliant route to put a foreign employee on a UK or US payroll while they work in Georgia under a Georgian employment contract. If you do not have an entity, open a company in Georgia or use an EOR.

Georgian employment contract

The employee must sign a locally compliant employment contract in Georgian (bilingual format is acceptable, but the Georgian text governs). This contract must comply with the Georgian Labour Code, include all mandatory clauses on working hours, leave, compensation, probation, and termination, and be enforceable under Georgian law. Using an English template from another jurisdiction is not a substitute and will not protect either party in a Georgian labour dispute.

Payroll and tax registration

Income tax in Georgia is flat at 20%, withheld by the employer from each salary payment. Pension contributions follow the 2+2+2 structure, 2% employer, 2% employee, 2% state match for Georgian citizens. Every employee must be registered with a Georgian Tax Identification Number (TIN). Salary must be paid through a compliant local payroll system in GEL with payslips issued monthly. All of this must be remitted to the Revenue Service on Georgian government timelines, not on the headquarters' payroll cycle.

Labour law compliance for foreign employees

Georgian labour law applies equally to all employees regardless of nationality. Full-time employees are entitled to 24 working days of paid annual leave per year, approximately 15 public holidays, paid sick leave, and full termination protections including notice periods and severance requirements. Overtime, night work, and remote work arrangements each have specific provisions. None of these are optional and none of them are waived for foreign nationals.

Ongoing immigration compliance

From 2026, employers must notify the Labour Agency of any termination, extension, or material change to a foreign employee's contract within 5 calendar days. Failing to do this results in a 1,000 GEL administrative fine. Track work permit expiry dates, residence permit renewal deadlines, and contract changes as active compliance obligations , not one-time setup steps.

Step-by-step: from entry to full legal employment

Step 1: Pre-arrival planning

Confirm the employee's nationality against Georgia's visa requirements. If visa-free, they can enter immediately. If an e-Visa is required, initiate that application. If a D1 work visa is required (for nationals not eligible for visa-free entry), the work permit must be obtained first , typically 30 days processing , and then used as the basis for the D1 visa application at a Georgian consulate. For post-March 2026 relocations, assume the work permit process adds at minimum 10 days (expedited) to the pre-arrival timeline.

Step 2: Entry and initial setup

The employee arrives with a valid passport. For visa-free nationalities, entry is straightforward , a border stamp noting the permitted stay period. The family of a relocating employee can typically receive residency once the main applicant has their residence permit. Secure a local address as early as possible , it is a required document for the residence permit application.

Step 3: Sign the employment contract

The employer entity (or EOR) and employee sign the Georgian-language employment contract. This is the document on which all subsequent permit applications and payroll registrations depend. Contract signing can happen on or before day one of work.

Step 4: Submit the work permit (Special Labour Activity Permit)

The employer submits the work permit application to SESA via the electronic portal. Where the Labour Market Test applies, the Worknet vacancy must have been posted for 10 business days first. Documentation typically required: employment contract, employee passport, proof of qualifications (for technical roles), and company turnover certification. Processing: standard 30 days, expedited 10 days. The employee can work legally on their visa-free status during processing.

Step 5: Apply for the residence permit

Once the work permit is issued, the employee in Georgia has 10 calendar days to apply for their Labour Residence Permit at the Public Service Hall. Required documentation: work permit approval, employment contract, employer confirmation letter, proof of salary meeting the 5x minimum threshold, passport and photos, and the application fee. Processing: standard 30 days; expedited options available. During processing, the employee remains legally present on their visa-free status.

Step 6: Post-approval registrations

Once the residence card is issued, complete the formal payroll registrations: TIN assignment if not already obtained, pension fund enrollment (2% employer contribution), and payroll setup in GEL. Note: after 183 days in Georgia, the employee becomes a Georgian tax resident, which determines how their worldwide income is taxed in Georgia. This is a separate consideration from the employment permit, particularly for employees with income from multiple sources.

Step 7: Onboarding and ongoing compliance

The employee is now fully legally employed in Georgia. Ongoing obligations: monthly payroll remittances to the Revenue Service, tracking permit renewal dates (set reminders at least 60 days before expiry), reporting any contract changes within 5 days, and maintaining employment records available for Labour Inspectorate inspection.

Pitfalls and how to avoid them

Assuming visa-free entry means no work compliance

The most common mistake. Visa-free entry allows staying in Georgia for up to a year. It does not authorise employment under a Georgian contract. From March 2026, every formal employment relationship requires a work permit regardless of how the employee entered. Treat visa-free entrants the same as any foreign hire: initiate the permit process immediately.

Missing the 2026 work permit requirement

If you hired foreign staff in 2025 or early 2026 without a work permit, the transition window to January 1, 2027 is open but finite. Start regularisation now. Working without a permit from March 2026 is a 2,000 GEL fine per party per offence, doubling and tripling for repeat violations.

Not meeting the residence permit financial criteria

Small companies sometimes apply for a Work Residence Permit and discover they do not meet the 50,000 GEL turnover requirement per foreign employee. Verify your company's revenue figures against the criteria before starting the application process. If the turnover threshold is not met, an EOR solves the problem immediately , the EOR's existing turnover covers the requirement.

Misclassifying employees as independent contractors

Georgia's tax and labour authorities apply substance-over-form analysis. If a "contractor" works exclusively for one client, under that client's supervision, using their equipment, and performing a core business function, they are an employee under Georgian law regardless of what the contract says. Misclassification triggers back taxes, pension contribution shortfalls, late-payment interest, and potential labour law claims.

Ignoring termination reporting requirements

From 2026, employers must notify the Labour Agency within 5 calendar days of any contract termination or material change. This is a new obligation that did not exist before and is easy to overlook if not built into the offboarding process. The fine for missing it is 1,000 GEL per incident.

How an EOR simplifies relocation compliance

An employer of record in Georgia removes the structural complexity of relocation compliance for companies that do not have their own Georgian entity. The EOR is the legal employer. It holds all registrations, meets the turnover threshold, and manages every compliance layer from work permits to payroll.

• Work permit management: the EOR submits the Special Labour Activity Permit application, manages the Worknet posting where required, and coordinates the justified refusal documentation if a local candidate is presented by SESA. Team Up's EOR model covers this end-to-end as standard.

• Residence permit coordination: the EOR tracks the 10-day window post-permit issuance and books the Public Service Hall appointment for the Labour Residence Permit application before the deadline passes.

• Compliant employment contracts: bilingual Georgian/English contracts structured to the Labour Code, with correct IP assignment clauses, leave entitlements, and probation terms , issued within days of the hire decision.

• Payroll in GEL: the 20% income tax, 2+2+2 pension contributions, payslip generation, and monthly Revenue Service filings are all handled by the EOR. The client receives one consolidated invoice.

• Ongoing compliance monitoring: permit renewals, contract change reporting within the 5-day window, and Labour Inspectorate documentation are managed as standard ongoing obligations, not one-time setup events.

• Speed: while an entity-first approach adds weeks before a hire can legally start, an EOR has onboarding beginning within days. The permit process runs concurrently rather than blocking the start date.

How Gegidze Helps

Gegidze supports founders and companies at every stage of building a Georgia presence , from understanding the tax options before arrival through to ongoing entity compliance once a team is established.

• Tax structuring , advising on whether Small Business Status, Virtual Zone, or International Company status is the right structure for a company relocating to Georgia, and how each affects the employer sponsorship picture. See Georgia's business tax system for the full breakdown.

• Company registration , for companies ready to move beyond EOR and hire directly, Gegidze handles the full Georgian LLC registration process, including remote registration for non-resident founders.

• Individual Entrepreneur registration , for founders or contractors relocating personally who want IE status with the 1% Small Business Status tax rate rather than formal employment.

• Georgia tax residency planning , advising on the 183-day rule and the High Net Worth Individual route for founders considering full Georgian tax residency as part of the relocation.

• Corporate banking , helping relocating companies open a corporate bank account in Georgia, including remote KYC for directors not yet physically present.

• Ongoing tax compliance , managing Georgia's monthly and annual filing deadlines for companies operating their own Georgian entity after relocating.

Final Thoughts

Georgia rewards organised operators. The tax environment is genuinely competitive. The talent base is real and growing. The entry framework is open. And the compliance system, while more structured than it was before March 2026, is not complicated for companies that approach it correctly.

The work permit reform is not a barrier , it is a process. Factor the 30-day processing window into your hiring timeline. Meet the financial thresholds. File the termination reports when required. Brief employees on their residency obligations. None of these steps are conceptually difficult. The companies that get fined are the ones that assumed the old informal rules still applied.

For founders who want to understand how the Georgia tax structures , Virtual Zone, Individual Entrepreneur, International Company , interact with their specific employment and relocation situation, book a free consultation with Gegidze.

Frequently Asked Questions (FAQs)

What is the Special Labour Activity Permit introduced in 2026?

From March 1, 2026, any local employer must obtain a Special Labour Activity Permit from the State Employment Promotion Agency (SESA) before a foreign national can legally begin work in Georgia. This permit is tied to the specific employer and role , changing jobs requires a new permit. It is the prerequisite for a D1 work visa (if the employee is abroad) or a Labour Residence Permit (if already in Georgia). Standard processing: 30 days. Expedited: 10 days at higher government fees.

Can a foreigner on a visa-free stay work in Georgia?

Visa-free status allows a foreign national to be physically present in Georgia for up to 365 days. It does not authorise formal employment under a Georgian contract from March 2026. If the individual is working remotely for a non-Georgian company with no Georgian footprint, the digital nomad framework may apply. If they are employed by a Georgian entity or through an EOR, they require the Special Labour Activity Permit regardless of their visa status.

What are the financial requirements for a Work Residence Permit?

Two financial criteria must be met: (1) the sponsoring Georgian entity must demonstrate annual turnover of at least 50,000 GEL per foreign employee sponsored , this is aggregate, so three foreign employees require 150,000 GEL; and (2) the employee's monthly net salary must equal at least five times the Georgian subsistence minimum for a working-age male (approximately 1,416 GEL net per month as of 2026). An EOR already meets the turnover criterion at scale , the client's own revenue is irrelevant.

Does the 1% Small Business Status apply to employed staff?

No. Small Business Status at the 1% rate is exclusively available to Individual Entrepreneurs (freelancers and self-employed professionals). If you hire someone as a formal employee, the employer must withhold the standard 20% personal income tax and contribute to the pension fund. The 1% rate applies to the IE themselves , not to a salary they receive as an employee.

What are the 2026 penalties for hiring a foreign national without a permit?

The initial fine is 2,000 GEL for the employer and 2,000 GEL for the employee per offence. A repeated violation within one year doubles this to 4,000 GEL each. A subsequent violation triples it, potentially reaching 12,000 GEL per party. Persistent non-compliance can result in deportation of the employee and a ban on the employer hiring foreign nationals. Georgia's Labour Inspectorate has significantly expanded its enforcement capacity under the 2026 reform.

How does Georgia tax residency work for relocated employees?

After 183 days in a calendar year in Georgia, a foreign national becomes a Georgian tax resident. This means their worldwide income is in principle subject to Georgian tax , though Georgia's territorial tax approach exempts most foreign-source passive income in practice. For employees whose sole income is their Georgian salary, this has no practical impact beyond the standard 20% withheld at source. For founders or employees with income from multiple jurisdictions, the 183-day rule should inform personal tax planning as part of the relocation decision.