If you're earning remotely and moving between countries, you've probably asked yourself: Where do I owe taxes?And more importantly: How can I stop losing 30% of my income to systems that don’t support the life I’ve built?

Georgia has become a top destination for digital nomads for a reason. The lifestyle is flexible, the cost of living is low, and the tax structure is? Surprisingly generous if you know how to use it.

Why Georgia stands out in a world of tax confusion

Let’s start with the big picture.

Most countries tax you based on your residency or citizenship. That means if you're from a high-tax country like Germany, the U.S., or France, you may still owe taxes there — even if you haven’t lived there in years.

Georgia flips that script.

Its territorial tax system only taxes income earned inside Georgia. Suppose your income comes from international clients and a Georgian company does not employ you. In that case, you can usually operate tax-free or at a dramatically lower rate, depending on your setup.

Here’s how the system works in practice:

You only pay tax on Georgian-sourced income unless you're a tax resident.
If you become a tax resident, worldwide income may be taxed — but that’s not necessarily bad (we’ll explain).
If you register as an Individual Entrepreneur with Small Business Status, you can pay just 1% tax on your turnover.
If you apply for Virtual Zone Status as an IT business, your income may be fully exempt from profit tax.

This isn’t some hidden trick. These are legal structures built into Georgia’s tax code, and if you know how to navigate them, you can keep more of what you earn without hiding or evading anything.

The three tax paths most digital nomads in Georgia choose

If you’re earning remotely and spending time in Georgia, your tax situation will likely fall into one of three buckets.

Let’s break them down clearly:

1. Stay under the radar: live in Georgia but don’t register anything

This is the default option for many short-term digital nomads.

If you:

Stay fewer than 183 days per year,
Don’t register a business,
Don’t become a tax resident,
Don’t earn income from Georgian sources,

...you may legally avoid tax in Georgia entirely.

You’re not a tax resident, and Georgia doesn’t tax foreign-sourced income unless you establish a business or residency. But this strategy has limits.

Watch out for:

Double taxation risks in your home country (e.g., Germany, Canada, UK).
Your bank reports to international tax authorities (CRS, FATCA).
Missing out on the benefits of legal status in Georgia (like 1% tax or tax treaties).

Best for: Short-term nomads with strong tax residency elsewhere.Risk: Unclear residency status might trigger questions from your home tax office.

2. Register for Small Business Status: pay 1% on your income

If you’re freelancing, running an agency, or consulting, and your clients are outside of Georgia, this is often the sweet spot.

Here’s how it works:

You register as an Individual Entrepreneur.
You apply for Small Business Status.
You pay 1% tax on your turnover up to 500,000 GEL (~$180,000).
You don’t pay income tax, corporate tax, or dividend tax on top.

This is one of the lowest legal tax rates in the world for remote workers.

Best for: Digital nomads earning freelance or contract income under ~$180k per year.

Watch out: You’ll need to do monthly filings, and the platform is only in Georgian.

If you’re worried about the process, Gegidze helps expats do this every day. We’ll handle the documents, translation, setup, and tax filings so you don’t risk mistakes.

3. Get Virtual Zone Status: run your remote IT business tax-free

This strategy is perfect if you:

Run a software company
Sell SaaS products
Develop apps or digital tools for international clients

If you qualify, Virtual Zone Status gives you:

0% corporate tax on international income
0% VAT on foreign services
0% dividend tax (if distributed to individuals outside Georgia)

It’s tailor-made for digital entrepreneurs in tech.

Best for: Remote-first IT companies, software developers, SaaS founders.You’ll need to register a legal entity and demonstrate IT-related activity.

This route is more paperwork-heavy, but it can lead to zero tax on high revenues. And no, you don’t need to live in Georgia full-time to use this setup. You just need a Georgian company that operates within the rules.

Should you become a tax resident?

This is where it gets personal, because your tax residency status defines your global tax reality.

You become a tax resident in Georgia if:

You spend 183+ days in the country in any 12 months, OR
You apply under Georgia’s High Net Worth Program (minimum asset/income requirements)

If you’re a tax resident:

Georgia can tax your worldwide income
But you also gain access to Georgia’s tax treaties (over 55 countries)
And you can leave your home country’s tax system — legally

For many nomads, becoming a tax resident in Georgia is actually a way out of higher tax systems back home.

If your country of origin taxes you based on residency (not citizenship), this may be the exit you need.If you're from the U.S., you’ll still owe tax to the IRS unless you renounce citizenship.

This decision should be made strategically. If you’re going to become a tax resident, make sure your income is structured in a way that aligns with Georgia’s low-tax rules.

That’s what we help with at Gegidze: identifying the right tax strategy based on your income type, citizenship, and goals.

What if you're a remote employee, not a freelancer?

Not every digital nomad is a freelancer or founder. Some work full-time for companies abroad. So what happens when you’re a remote employee living in Georgia?

This is where things get a bit nuanced.

If you’re:

Working under a foreign employment contract
Getting paid a salary into your personal account
And not registered as a business in Georgia

Then your income is considered foreign-sourced, unless you’re a Georgian tax resident.

If you’re not a resident (under the 183-day rule), Georgia usually won’t tax you. You can legally live here, work remotely, and owe no tax to the Georgian government.

But once you spend more than 183 days, you become a tax resident, and your global income becomes taxable in Georgia.

Here's the key:

Georgia allows foreign tax credits and has double tax treaties with many countries. If you’re paying taxes in your home country, you may avoid double taxation, but you have to prove it.

What are your options if you're a remote employee in Georgia for the long term?

Stay under 183 days per year. You’ll avoid triggering tax residency.
Use Georgia’s High Net Worth (HNW) residency status. If you have over 500,000 GEL in assets or a high annual income, you can apply to become a tax resident without the 183-day requirement. This lets you formalize your status while controlling your tax exposure.
Switch to contractor status. If your employer agrees, you could move to freelance status, register as an Individual Entrepreneur, and qualify for the 1% tax rate in Georgia. This setup is popular among long-term expats.

Important: This switch changes your legal and tax obligations, so talk to both your employer and a Georgian tax advisor before you go this route.

How to avoid double taxation as a digital nomad in Georgia

One of the most common concerns we hear is:“If I pay 1% in Georgia, will I still owe tax in my home country?”

Here’s the truth: it depends.

Georgia’s tax treaties

Georgia has double taxation agreements (DTAs) with over 55 countries. This includes:

Germany
France
Italy
UK
Canada
Poland
Czech Republic
UAE
Turkey
China

These treaties allow you to avoid being taxed twice on the same income. If you're a tax resident in Georgia, and you can show that you've paid tax here (even just 1%), your home country may exempt you from additional taxes.

But DTAs don’t always cover everything. Some income types, like dividends or royalties, may be taxed differently. And not all countries have a DTA with Georgia.

No treaty? Here’s what you need to watch out for:

Some countries (like Australia) may still consider you taxable based on ties like family, real estate, or residency registration.
If you're American, you're taxed based on citizenship. Even if you're a tax resident in Georgia, you’ll still need to file with the IRS.

The bottom line: Being tax resident in Georgia with a legal structure like Individual Entrepreneur with SBS is powerful, but only if you’ve also handled your exit properly in your home country.

At Gegidze, we help clients evaluate this based on where they’re from, how they earn, and how they plan to live.

Monthly obligations: what you’re responsible for (and what happens if you forget)

Let’s say you’ve registered as an Individual Entrepreneur and have Small Business Status. You’re now enjoying the 1% tax regime in Georgia. Great.

But to keep that benefit, there’s one non-negotiable: You must file monthly tax declarations.

Even if you didn’t earn anything that month, your filing is still required.

Here’s what monthly compliance looks like:

1. Monthly turnover declaration

Filed through the Revenue Service portal (Georgian only)
Must be submitted by the 15th of each month
You pay 1% of your gross income from the previous month

2. Reverse VAT declarations (if applicable)

If you use foreign digital services (e.g., Meta Ads, Notion, Canva), you may need to file reverse VAT
You don’t pay VAT unless you’re VAT-registered, but the declaration is required.

3. Annual declarations

Even if you file monthly, Georgia still requires an annual income report
Submitted in the first quarter of the following year
It confirms your annual revenue and SBS compliance

Penalties for late or missing filings:

100 GEL per missed declaration
Risk of losing Small Business Status for repeat offenses
Random audits (especially if you’re a foreigner with a growing income)

Pro tip: Many digital nomads delegate their monthly filings to a Georgian tax agency (like us). The Revenue Service’s platform is only in Georgian, and a simple typo can create bigger problems later.

What to track and prepare as a digital nomad in Georgia

To stay compliant and protected, you’ll want to keep clear records of your:

Client invoices
Payment receipts
Bank statements (Bank of Georgia, TBC, etc.)
Contracts showing international income
Any digital service subscriptions for reverse VAT

And if you’re planning to apply for tax residency or High Net Worth Status, you’ll also need to track:

Date of arrival and departure
Proof of physical presence
Total income and asset documentation

You don’t need a full accounting team to do this. But you do need a system.

Gegidze clients get monthly reminders, checklists, and ongoing support to make this simple.

How to manage your money in Georgia without stress

You’ve registered, filed your taxes, and now you're earning money. So what’s the best way to handle your income while living in Georgia?

Let’s keep it simple.

Opening a bank account

If you want to get paid in Georgia, you’ll need a local account. Most digital nomads use either Bank of Georgia or TBC Bank.

Here’s what you need:

A valid passport
Proof of business registration (if you're an Individual Entrepreneur)
A Georgian phone number (for SMS authentication)
Sometimes, a Georgian address (hotel or rental agreement usually works)

The process is usually done in one visit. You’ll leave with a card in your hand, online banking access, and a working IBAN.

Why open a Georgian bank account?

You can invoice clients and receive USD, EUR, or GEL payments
You avoid excessive currency conversion fees from foreign banks
You simplify tax payments, which must be paid from a Georgian account

Many digital nomads choose Bank of Georgia business online services because they’re English-friendly and offer mobile apps that work well internationally.

Getting paid in foreign currency

Even if your clients pay in USD or EUR, most Georgian bank accounts will auto-convert to GEL unless you specify a foreign currency sub-account.

We recommend:

Setting up multi-currency accounts
Using Wise or Payoneer only to collect and forward funds, not to hold income
Avoiding PayPal for receiving client payments in Georgia, local banks often reject incoming PayPal payouts due to compliance rules

Managing currency is one of the most overlooked parts of digital nomad taxes in Georgia. Exchange rate losses add up. Plan your conversions wisely and avoid unnecessary fees.

Can you transfer money out of Georgia?

Yes. Georgia has no currency restrictions, and you can send money abroad at any time. Just make sure your outgoing transfers are documented — especially if you’re wiring to a personal account abroad.

Some digital nomads keep savings in a Georgian USD account for convenience, while others regularly transfer income to their home country.

It depends on where you're tax resident and whether you need to show local funds for visa or residency purposes.

Common mistakes digital nomads make (and how to avoid them)

Even if you’re careful, it’s easy to miss a detail that puts your tax status at risk. Here’s what we’ve seen too often.

Mistake #1: Working before registering

If you earn income before registering your Individual Entrepreneur status, you’ll be taxed at 20%, not 1%. There’s no way to fix that retroactively.

Solution: Register your business before you issue your first invoice in Georgia. Gegidze can help you set it up in 48 hours.

Mistake #2: Thinking one client = freelance

If you’re working for just one company, using their tools, on their schedule, with regular hours, the tax office may decide you’re an employee in disguise.

This matters if you’re trying to use the 1% tax regime, which is for entrepreneurs, not employees.

Solution: Clarify your contract. Make sure it defines you as a contractor, not a dependent worker. And diversify your income sources if you can.

Mistake #3: Assuming Georgia won’t ever ask questions

Many digital nomads assume that Georgia’s low-tax setup means they won’t face scrutiny. That’s not true.

The Revenue Service has increased inspections in recent years, especially for foreigners. They may request:

Client lists
Invoices
Contracts
Bank records

Solution: Keep everything clean and documented. A clear business model and organized records are your best protection.

Mistake #4: Not preparing for audits or reviews

If your income spikes or your structure seems unclear, the tax office may review your case. If they revoke your Small Business Status, you’ll owe 20% tax on the entire year’s income.

Solution: Keep monthly filings accurate. Work with a local expert who monitors your revenue and alerts you before problems arise.

Real strategies that work (from people like you)

Let’s look at what successful digital nomads can be doing in Georgia right now.

Emma – UX designer from Berlin

Structure: Individual Entrepreneur with SBS.

Income: €6,000/month. Tax paid: €60/month.

Emma spends 9 months a year in Tbilisi. She’s a tax resident in Georgia and pays 1% on her turnover. She canceled her German residency and now uses Georgia for all her tax filings.

Her tip: Getting SBS changes everything. You stop stressing about taxes and save enough to take 2 months off for a vacation.

Gabriel – Remote marketing employee from Canada

Structure: No registration, stays under 183 days.

Income: $4,500/month. Tax paid in Georgia: $0.

Gabriel works for a Canadian company and uses Georgia as a part-year base. Because he doesn’t stay long enough to trigger tax residency and doesn’t register a business, he’s legally not taxed in Georgia.

His tip: The key is timing. Track your days carefully and make sure you never cross the 183-day mark.

Nina – SaaS founder from London

Structure: Georgian LLC with Virtual Zone Status.

Income: $250,000/year. Tax paid: 0% corporate tax.

Nina runs a small software company with developers in Eastern Europe. She set up a Georgian entity to qualify for Virtual Zone Status and now operates tax-free on her international profits.

Her tip: Georgia’s Virtual Zone is the best-kept secret in tech. But you need to set it up carefully to avoid surprises.

Why Georgia works - if you work it right

Georgia is not a tax loophole. It’s not a short-term hack. It’s a place that has intentionally created a legal, friendly environment for remote workers and digital entrepreneurs.

But like any system, it only works if you understand the rules.

If you register as an Individual Entrepreneur, you need to file monthly.
If you stay longer than 183 days, you need to understand your tax residency.
If you're coming from a high-tax country, you need to know how double taxation applies to you.

The real win isn’t just the 1% tax or the Virtual Zone status. It’s the clarity and peace of mind that come from knowing your setup is legal, optimized, and sustainable.

How Gegidze helps digital nomads like you

You don’t need to figure this all out alone.

At Gegidze, we:

Register your business and help choose the right tax structure
Handle your monthly tax declarations and VAT filings
Open your Bank of Georgia account
Translate and notarize your documents
Guide you through residency, audits, and international tax questions
Keep you compliant so you can focus on earning, not worrying

You can come here for 3 months or 3 years. We’ll help you make it work either way.

Ready to figure out your tax strategy in Georgia?

Book a free consultation with our team.We’ll review your income, goals, and current setup. Then we’ll tell you exactly what your options are and how to make them work.

No upsells. No pressure. Just practical, honest advice from people who know how Georgia works.

Book your free call with Gegidze

Your life is already remote. Your taxes should be just as flexible.

Frequently asked questions (FAQ)

Can digital nomads live in Georgia and pay no tax?

Yes: if you stay under 183 days, earn only foreign income, and don’t register a business, Georgia won’t tax you under its territorial system.

How do I qualify for Georgia’s 1% tax regime as a freelancer?

You must register as an Individual Entrepreneur, apply for Small Business Status, and earn less than 500,000 GEL annually in eligible services.

What is Virtual Zone Status and who should apply?

It’s a tax exemption program for IT companies registered in Georgia. Software businesses with international clients can pay 0% corporate tax if approved.

Will I be taxed twice if I become a tax resident in Georgia?

Not if your country has a double taxation treaty with Georgia and you provide proof of tax residency and paid taxes.

What happens if I miss a monthly declaration in Georgia?

You’ll face a 100 GEL fine per missed filing and risk losing Small Business Status if non-compliance continues.