Should You Hire a Tax Advisor in Georgia? Pros, Cons, and When You Need One
- Tinatin Tolordava
- May 16
- 8 min read
Table of contents
Introduction
Georgia is known for having one of the world's simplest and most attractive tax systems. Whether you're a digital nomad, a remote freelancer, or a startup founder, paying 1 percent tax under Small Business Status is tempting. Company registration takes a day. The Georgia tax rate is flat. Filing your Georgia tax return is digital and seemingly straightforward.
But here’s what many entrepreneurs discover a few months in: the simplicity of Georgia’s system is real, but so is the risk of getting it wrong. From missing key deadlines to registering under the wrong activity or misunderstanding your Georgia tax residency obligations, these small missteps can result in big consequences. That’s where the idea of hiring a tax advisor in Georgia comes in.
This blog breaks down what tax advisors do here, when it’s worth paying for help, when you can probably skip it, and what questions to ask before trusting someone with your business and income.
What Does a Tax Advisor in Georgia Actually Do?
A good tax advisor in Georgia does more than just file paperwork. They help foreign entrepreneurs navigate Georgia’s tax landscape safely, strategically, and legally. Here's how:
Business structuring
Choosing between an Individual Entrepreneur (I.E.) and a Limited Liability Company (LLC) matters more than you think. A tax advisor evaluates your income and growth plans to guide your choice from day one.
SBS application
Small Business Status (SBS) allows I.Es to pay just 1 percent turnover tax. An advisor ensures your business activity qualifies and your application is submitted on time, so your early income isn’t taxed at 20 percent.
Monthly compliance
Even if your income is zero, Georgia requires a monthly turnover declaration. Missing one leads to fines. Advisors track and file this on time to keep you compliant and penalty-free.
Annual tax return (Form 500)
Form 500 is due by March 31 each year. Errors in this return can affect your status, visa renewals, or future tax residency applications.
Tax residency guidance
Spending 183+ days in Georgia or paying 25,000+ GEL in tax qualifies you for Georgia tax residency. An advisor ensures your application validates and aligns with your global tax strategy.
Double taxation support
Georgia has treaties with 50+ countries. A good advisor knows how to apply these treaties to help you avoid being taxed both at home and in Georgia.
Dividends and corporate profit planning
If you're running an LLC, your profits are taxed 15 percent when distributed, plus a 5 percent dividend tax in Georgia. Advisors help you delay, structure, or reduce distributions legally to optimize your tax outcome.
Pros of Hiring a Tax Advisor in Georgia
There are clear advantages to hiring a tax advisor in Georgia, especially if you’re managing multiple revenue sources, expanding fast, or navigating global compliance requirements.
Avoid penalties and compliance errors.
If you miss one filing, you could lose your 1 percent tax status. An advisor ensures that every deadline is tracked and handled correctly.
Save time and mental energy.
The Revenue Service portal is user-friendly, but having someone manage your filings can free up valuable hours if you're juggling multiple clients or currencies.
Get SBS right from the start.
Wrong timing or an ineligible activity code can cost you thousands in avoidable tax. Advisors, make sure your SBS is accepted before you invoice.
Prevent double taxation
If you earn money abroad but live in Georgia, your income could be taxed in both countries. Advisors ensure proper treaty application and residency documentation.
Understand what’s taxed and what’s exempt.
Some types of income look foreign but are considered Georgian-sourced if earned while you’re physically in the country. Your advisor can help you determine this.
Peace of mind during audits
If the Revenue Service asks questions or reviews your history, it’s good to have someone who can interpret and respond to those queries on your behalf.
Long-term tax planning
As your income grows, the 500,000 GEL SBS cap becomes relevant. Advisors help you plan, decide when to switch to an LLC, and optimize for profit reinvestment or payouts.
Cons of Hiring a Tax Advisor in Georgia
A tax advisor isn't always necessary, and there are cases where you might be better off doing things yourself.
Cost
For freelancers just starting out, even a small monthly fee might eat into their budget. If they earn under 3,000 GEL/month and their setup is basic, consider learning the system first.
Not all advisors are equal
Some advisors focus only on local businesses and don’t fully understand the needs of remote workers or foreigners. Others give generic advice that doesn’t apply to international situations.
Risk of over-dependence
If you rely on your advisor for every form and don’t understand the basics, you’re vulnerable if that person becomes unavailable or makes an error you don’t catch.
You may not need one yet
If your only income is freelance work from abroad, you’re under the SBS cap, and you’re familiar with the portal, you might manage just fine without outside help.
When You Need a Tax Advisor in Georgia
There are specific milestones in your business journey where a tax advisor isn’t optional, it’s necessary.
You're opening your business and not sure if you need an I.E. or LLC
Choosing the wrong structure could put you into the corporate tax in Georgia bracket (15 percent) when a 1 percent turnover would have been available.
You want to apply for SBS and keep the 1 percent rate
SBS must be approved before you start invoicing, or you’ll owe 20 percent tax on early revenue. Advisors help time this perfectly.
You're planning to stay and apply for Georgia tax residency
Advisors prepare your Tax Residency Certificate application, ensure you comply with Georgia tax return obligations, and help avoid red flags.
You’ve hit or are nearing 500,000 GEL in turnover
Once you exceed the SBS cap, excess income is taxed at 3 percent. You lose SBS permanently if you go over two years in a row. An advisor helps you transition to a smarter setup.
You have income from multiple countries
This increases the risk of double taxation, especially if you’re still a resident elsewhere. Advisors help apply tax treaties and clarify which income is safe in Georgia’s system.
You’re paying yourself dividends
If you own an LLC, profit distribution triggers Georgia's 15 percent corporate tax and 5 percent dividend tax. Advisors help you time payments or switch to salary-based income where needed.
You’re scaling your team or adding contractors abroad
Sending payments out of Georgia can trigger withholding taxes if not classified properly. An advisor keeps your reporting clean and compliant.
When You Might Be Fine Without a Tax Advisor in Georgia
Not everyone needs professional help. If your business is small, predictable, and remote, handling tax yourself might be fine.
You can probably skip a tax advisor (for now) if:
Your income is simple and below 500,000 GEL
You're working alone, offering one service, and you’re under the Small Business Status threshold. You file your turnover monthly and pay 1 percent on time. No dividends. No employees. No big surprises.
You’re not a tax resident of Georgia
If you’re visiting Georgia short-term and your main tax home is elsewhere, you don’t need local residency or residency advice. Just be sure your income isn’t taxed locally.
You’re familiar with the Revenue Service portal
If you’re confident in filing monthly declarations and your annual Georgia tax return (Form 500), a DIY approach can save you money.
You’re not scaling or hiring yet
If your business is solo and you’re not planning to expand, no complex tax planning is required right now.
You understand your income classification
If you’ve confirmed that your revenue is foreign-sourced and you don’t have Georgian clients or employees, then your exposure to local tax rules is minimal.
If this is you, make sure you still stay alert for changes in income, thresholds, or future relocation plans. Even if you’re managing alone now, it helps to revisit the question of hiring a tax advisor every 6 to 12 months.
Questions to Ask Before Hiring a Tax Advisor in Georgia
Before choosing a tax advisor in Georgia, ensure they fit. Not all advisors understand expat businesses, foreign income, or remote work tax issues.
Ask these questions before you commit:
Do you work with expats and digital entrepreneurs?
A local advisor focused only on restaurants and retail won’t understand the needs of remote freelancers or startup founders billing abroad.
Do you help with SBS, LLC setup, and tax residency?
Make sure they can assist with registration, Small Business Status, and the application for Georgia tax residency if needed.
Do you handle both monthly and annual compliance?
Turnover filings and Form 500 are both required. A good advisor will cover both.
Can you advise on dividend tax and profit payouts in Georgia?
If you plan to scale or retain profit, you’ll want advice on the timing and structure of distributions.
Will you help with audits or tax residency certificates?
If something goes wrong or you get flagged for review, you’ll want someone who can handle the back-and-forth with the Revenue Service.
Can you explain the difference between Georgian-sourced and foreign-sourced income?
This one is crucial. You need someone who understands the nuances of the territorial tax system.
If the advisor can’t answer these clearly, keep looking. Your tax setup is too important to guess through.
Conclusion: When the Cost of Not Hiring Is Higher Than the Fee
Hiring a tax advisor in Georgia isn’t necessary for every business, but when it matters, it matters.
If you’re registering your first business, applying for SBS, preparing for tax residency, or approaching the 500,000 GEL cap, the wrong move can cost more than a year of advisory fees.
The best tax advisors help you protect your status, simplify your life, and legally reduce your Georgia taxes percentage. They spot issues you didn’t know were issues and make sure you’re never surprised at tax time.
At Gegidze, we work with freelancers, founders, and remote business owners who want to get things right from the beginning. Whether you need one-time help with company formation in Georgia, ongoing tax return filing, or full tax residency planning, we’ve got your back.
Let’s discuss your situation and determine whether you need a tax advisor or just a smart setup that keeps things simple.
Frequently asked questions (FAQ)
Do I need a tax advisor in Georgia if I’m a freelancer?
If your income is simple, under 500,000 GEL, and you understand the monthly turnover filing process, you might not need a tax advisor right away. But if you're registering a business, applying for Small Business Status, or nearing the income cap, professional help is smart.
