The country has quietly built one of the most straightforward and crypto-friendly environments in the world. Companies can legally structure crypto payments, set up compliant payroll systems, and enjoy a tax regime that outshines most of Europe.

Add fast company registration, affordable real estate in Tbilisi and Batumi, and a growing crypto community, and you see why Georgia is moving up the list of preferred destinations for global Web3 businesses.

The Legal Status of Crypto in Georgia

The first question any founder asks: is crypto even legal in Georgia?

The answer is yes, and not just legal but encouraged.

Georgia recognises crypto as a digital asset. Ownership, trading, mining, and staking are all legal.

Companies can also use crypto commercially, provided conversions to fiat happen through licensed channels.

There are a few key points to understand:

Crypto is not legal tender. Salaries must be paid in GEL, Georgia’s national currency. But that does not stop companies from paying in crypto if payroll is managed through structured conversions.
Businesses can accept crypto as payment for services or products, then convert into GEL, USD, or EUR through compliant banks or exchanges.
The National Bank of Georgia oversees licensing for exchanges and custodial wallets under the VASP framework.

For Web3 startups, DAOs, and iGaming platforms, this clarity is gold. Georgia is not fighting crypto. It is regulating it with rules that make sense.

Tax Rules for Crypto Businesses in Georgia

Taxes are where Georgia really shines. The system is territorial, transparent, and far more forgiving than in most other countries.

For individuals:

0% tax on capital gains when trading crypto.
0% VAT on converting crypto to fiat.
No wealth tax, no inheritance tax, and no net worth tax.

For companies:

Virtual Zone crypto Georgia: 0% corporate income tax on foreign-sourced IT and crypto services.
Dividend tax: only 5% when profits are distributed.
Individual Entrepreneur (IE): freelancers or DAO contributors pay just 1% turnover tax up to 500,000 GEL (around €170,000).
Free Industrial Zone mining Georgia: 0% corporate tax, 0% VAT, and duty-free imports for hardware.
International Company Georgia: larger crypto firms with a physical presence enjoy reduced corporate and employee-related taxes.

This means a DAO paying contributors, or an iGaming company processing international transactions, can legally operate with almost no corporate tax burden. Compare that to 25–30% in the EU, or more than 21% in the US, and the difference is massive.

Compliance and VASP Registration in Georgia

One reason crypto founders avoid certain countries is over-regulation. Licensing fees are high, AML rules are strict, and compliance teams become bigger than dev teams.

Georgia takes a lighter but still credible approach.

VASP registration Georgia is required if you run a crypto exchange, custodial wallet, or platform handling customer assets.
If your company only uses crypto internally, for payroll or DAO payouts, VASP registration is not needed.
AML and KYC checks apply to iGaming companies and Web3 platforms dealing with customer payments.
Compliance filings with the Revenue Service Georgia are straightforward and inexpensive.

Mistakes do happen. Many newcomers try to pay salaries directly in crypto without converting to GEL. That creates compliance risks. Others assume that simply registering a company automatically grants tax benefits. In reality, you need the right status such as IE, Virtual Zone, or International Company to actually enjoy those breaks.

The takeaway: Georgia is business-friendly, but only if you set things up correctly.

How Web3 Startups Use Georgia

Web3 founders love flexibility. They often run lean teams spread across time zones, paying contributors in stablecoins or tokens. Georgia supports this model perfectly.

A Web3 company can register as a Virtual Zone Person and benefit from 0% corporate income tax on revenue from foreign clients. That covers SaaS tools, DeFi services, or blockchain infrastructure projects. Dividends, when paid, face just a 5% tax.

When it comes to payroll, developers can be registered as Individual Entrepreneurs with 1% turnover tax. That means a contributor in Tbilisi earning €80,000 annually pays only €800 in tax. Compare that to €30,000 in Germany or France.

For token launches, Georgia’s rules are clear. As long as proceeds are structured as foreign-sourced revenue, they fall under the same 0% corporate tax framework. This is why so many token-based startups are quietly moving their legal structures to Tbilisi.

DAOs in Georgia: Clarity in a Complicated World

DAOs, or Decentralized Autonomous Organizations, are collectives that manage funds, projects, and decisions through blockchain-based governance. Contributors are spread across the globe, decisions are voted on by token holders, and payouts are usually made in crypto.

The challenge with DAOs in most countries is the legal grey area.

Where is the DAO incorporated?
How do contributors declare their income?
Can they receive official tax records?
What about banking and compliance when funds need to move into fiat?

In Georgia, the picture is clearer. While a DAO itself is not a recognised legal entity, it can operate through existing company structures. The most common solution is to establish a Georgian LLC or Virtual Zone company, which acts as the legal wrapper for the DAO’s activities. This allows the DAO to sign contracts, open bank accounts with Bank of Georgia or TBC Bank, and convert crypto into fiat legally.

For individual contributors, Georgia makes compliance simple. Each member can register as an Individual Entrepreneur (IE) under the small business regime and pay just 1% turnover tax on their income from DAO payouts. This is a huge benefit compared to countries where such income might be taxed at 30–40% without any clarity.

The result is a hybrid model:

The DAO treasury operates on-chain, managing funds transparently.
A Georgian LLC provides the legal and tax framework for fiat interactions.
Contributors declare income officially through IE registration and keep nearly all of what they earn.

This structure turns what is usually a legal headache into a simple, compliant system. Georgia provides a pathway for DAOs to bridge blockchain operations with traditional finance and tax compliance.

Georgia’s Crypto Advantage Nobody Talks About

Web3 companies, DAOs, and iGaming platforms face the same global problem: regulation is catching up faster than innovation.

In the US, the SEC is tightening its grip on token projects. In the EU, MiCA regulation adds new licensing hurdles. In Asia, rules vary wildly between countries. Even so-called “crypto-friendly” hubs like Malta and Cyprus come with high costs, endless paperwork, and reputational risks.

This is why more founders are turning their eyes to Georgia.

The country has quietly built one of the most straightforward and crypto-friendly environments in the world. Companies can legally structure crypto payments, set up compliant payroll systems, and enjoy a tax regime that outshines most of Europe. Add fast company registration, affordable real estate in Tbilisi and Batumi, and a growing crypto community, and you see why Georgia is moving up the list of preferred destinations for global Web3 businesses.

The Legal Status of Crypto in Georgia

The first question any founder asks: is crypto even legal in Georgia?

The answer is yes, and not just legal but encouraged. Georgia recognises crypto as a digital asset. Ownership, trading, mining, and staking are all legal. Companies can also use crypto commercially, provided conversions to fiat happen through licensed channels.

There are a few key points to understand:

Crypto is not legal tender. Salaries must be paid in GEL, Georgia’s national currency. But that does not stop companies from paying in crypto if payroll is managed through structured conversions.
Businesses can accept crypto as payment for services or products, then convert into GEL, USD, or EUR through compliant banks or exchanges.
The National Bank of Georgia oversees licensing for exchanges and custodial wallets under the VASP framework.

For Web3 startups, DAOs, and iGaming platforms, this clarity is gold. Georgia is not fighting crypto. It is regulating it with rules that make sense.

Tax Rules for Crypto Businesses in Georgia

Taxes are where Georgia really shines. The system is territorial, transparent, and far more forgiving than in most other countries.

For individuals:

0% tax on capital gains when trading crypto.
0% VAT on converting crypto to fiat.
No wealth tax, no inheritance tax, and no net worth tax.

For companies:

Virtual Zone crypto Georgia: 0% corporate income tax on foreign-sourced IT and crypto services.
Dividend tax: only 5% when profits are distributed.
Individual Entrepreneur (IE): freelancers or DAO contributors pay just 1% turnover tax up to 500,000 GEL (around €170,000).
Free Industrial Zone mining Georgia: 0% corporate tax, 0% VAT, and duty-free imports for hardware.
International Company Georgia: larger crypto firms with a physical presence enjoy reduced corporate and employee-related taxes.

Compliance and VASP Registration in Georgia

One reason crypto founders avoid certain countries is over-regulation. Licensing fees are high, AML rules are strict, and compliance teams become bigger than dev teams.

Georgia takes a lighter but still credible approach.

VASP registration Georgia is required if you run a crypto exchange, custodial wallet, or platform handling customer assets.
If your company only uses crypto internally, for payroll or DAO payouts, VASP registration is not needed.
AML and KYC checks apply to iGaming companies and Web3 platforms dealing with customer payments.
Compliance filings with the Revenue Service Georgia are straightforward and inexpensive.

The takeaway: Georgia is business-friendly, but only if you set things up correctly.

How Web3 Startups Use Georgia

Web3 founders love flexibility. They often run lean teams spread across time zones, paying contributors in stablecoins or tokens. Georgia supports this model perfectly.

DAOs in Georgia: Clarity in a Complicated World

The challenge with DAOs in most countries is the legal grey area.

Where is the DAO incorporated?
How do contributors declare their income?
Can they receive official tax records?
What about banking and compliance when funds need to move into fiat?

In Georgia, the picture is clearer.

While a DAO itself is not a recognised legal entity, it can operate through existing company structures. The most common solution is to establish a Georgian LLC or Virtual Zone company, which acts as the legal wrapper for the DAO’s activities.

This allows the DAO to sign contracts, open bank accounts with Bank of Georgia or TBC Bank, and convert crypto into fiat legally.

For individual contributors, Georgia makes compliance simple.

Each member can register as an Individual Entrepreneur (IE) under the small business regime and pay just 1% turnover tax on their income from DAO payouts.

This is a huge benefit compared to countries where such income might be taxed at 30–40% without any clarity.

The result is a hybrid model:

The DAO treasury operates on-chain, managing funds transparently.
A Georgian LLC provides the legal and tax framework for fiat interactions.
Contributors declare income officially through IE registration and keep nearly all of what they earn.

This structure turns what is usually a legal headache into a simple, compliant system. Georgia provides a pathway for DAOs to bridge blockchain operations with traditional finance and tax compliance.

Mining and Staking: Why Georgia Is Still Attractive

Crypto mining might not dominate headlines the way it once did, but it is still alive in Georgia. The country has long been known for cheap electricity and a supportive environment for large-scale operations.

The biggest advantage for miners comes from Free Industrial Zones (FIZ). These are special areas where companies enjoy:

0% corporate income tax.
0% VAT.
0% import duties on mining equipment.

That means mining rigs can be imported without extra cost, energy-intensive operations can run without VAT, and profits are untaxed unless distributed. Staking, too, falls into the same category of digital services, making it possible to structure staking pools inside a Georgian entity.

For companies running international mining pools or staking platforms, Georgia offers cost savings combined with clear compliance. It is cheaper than the EU, less restrictive than the US, and more credible than running operations in offshore islands.

Practical DAO Structures in Georgia

To make it clearer how DAOs can function in Georgia, let’s break down a simple structure.

DAO Component	Georgian Legal Equivalent	Tax Treatment
DAO Treasury on-chain	Georgian LLC (Virtual Zone or standard)	0% corporate tax on foreign revenue, 5% dividend tax when distributed
Contributors	Individual Entrepreneurs (IE)	1% turnover tax up to 500,000 GEL
Payouts	Managed as contractor income	Official, tax-compliant income records
Banking	Bank of Georgia, TBC Bank, Liberty Bank	Crypto-to-fiat conversions through licensed channels

This structure does two things:

It gives the DAO a legal wrapper that can sign contracts and open accounts.
It gives contributors a simple, legal way to declare income without being taxed at punishing rates.

This model makes DAOs in Georgia far more sustainable and attractive to institutional partners.

Why Georgia Beats Other Jurisdictions

Crypto companies often compare Georgia with the “usual suspects” in Europe and beyond. The results are surprising.

Estonia: Once known as the crypto hub, but now heavily regulated. VASP licenses are expensive, compliance is strict, and many companies have had licenses revoked.

Lithuania: A growing hub, but higher costs and slower licensing make it less agile.

Malta: Reputation as a “Blockchain Island” has been hurt by scandals and complex regulations. Legal fees are high, and compliance is demanding.

Cyprus: Tax-friendly, but corporate structures are complex and costly.

Georgia:

Company registration takes 1–2 days.
Virtual Zone status is free.
VASP registration is clear but not required for every business.
Taxes are some of the lowest worldwide.
Crypto is not over-regulated, but still supported by AML/KYC rules.

For Web3 startups, DAOs, and iGaming platforms, Georgia provides the right balance: low taxes, simple compliance, and international credibility.

Lifestyle Benefits: More Than a Tax Haven

Georgia’s appeal isn’t just about the numbers. Entrepreneurs also care about where they live and work.

Housing

Apartments in Tbilisi Georgia are modern and surprisingly affordable. A city-center apartment costs €600–800 per month to rent. Buying an apartment for sale in Tbilisi Georgia might cost €120,000–150,000 for a high-end property. In Batumi, prices are often lower, making apartments in Batumi Georgia popular with investors. Foreigners can also look at land for sale in Georgia, which remains accessible and inexpensive compared to Europe.

Residency by Investment

Buying property worth around $100,000 allows foreigners to apply for temporary residency in Georgia. This is one of the simplest residency programs in Europe, with minimal paperwork. It makes relocation easy for founders, contractors, and entire teams.

Cost of Living

The average cost of rent in Georgia is far below European or US levels. Utilities, internet, taxis, and groceries are cheap. A coffee in Tbilisi might cost €1. A taxi across town, less than €3. For entrepreneurs earning globally, this means money stretches further.

Community and Connectivity

Tbilisi has become a magnet for digital nomads, influencers, and tech founders. Coworking spaces are filled with Web3 developers, startup founders, and global creatives. Cafes in Vake and Vera buzz with people editing YouTube videos, building DAOs, or coding smart contracts. The internet is fast and reliable, making Georgia a true hub for online businesses.

Banking and Payments

Crypto may be at the heart of Web3, but fiat still matters for payroll, taxes, and compliance.

Georgia has a robust banking system with modern services. Bank of Georgia, TBC Bank, and Liberty Bank all provide:

Multi-currency accounts (GEL, USD, EUR, GBP).
IBAN and swift transfers for international payments.
Debit and credit cards for business expenses.
Online banking in English.

To open accounts, companies need certified English to Georgian translations of documents. Contracts, passports, and company charters must be translated properly. Gegidze provides these services so founders avoid rejection at the bank counter.

For payroll, crypto can be converted into GEL through compliant structures. Companies pay salaries legally, employees declare them officially, and everything remains transparent. This is far more credible than paying in stablecoins directly without conversion.

Common Mistakes Crypto Companies Make

Even with such advantages, many businesses still get tripped up.

Paying salaries directly in crypto without GEL conversion. Georgian law requires salaries in the national currency. Crypto payroll Georgia solves this by converting payments into GEL through banks or payment partners.
Assuming registration means automatic tax perks. To benefit from 0% corporate tax, you need Virtual Zone status. To qualify for 1% turnover tax, you need IE registration.
Confusing employees and contractors. Employees must be on payroll with withholding tax and pensions. Contractors can use IE registration. Mixing these up creates penalties.
Ignoring translations. The Revenue Service Georgia and Georgian banks only accept certified translations. Using Google Translate English to Georgian is not enough.

Avoiding these pitfalls is simple with the right guidance.

How Gegidze Supports Web3, DAOs, and iGaming

Georgia provides the tools, but setting up correctly requires local expertise. Gegidze is the partner that makes it simple.

We help companies and entrepreneurs with:

Company registration in Georgia, including LLCs and Virtual Zone applications.
Guidance on VASP registration Georgia for exchanges and custodial platforms.
Certified English to Georgian translations for contracts, banking, and legal filings.
Payroll structuring, including crypto-to-fiat conversions that comply with Georgian law.
Tax residency planning for founders, ensuring dividends are taxed at only 5%.
Ongoing compliance with the Revenue Service Georgia, so you never miss a filing.

Whether you are a Web3 startup launching a token, a DAO needing compliant payouts, or an iGaming company processing international payments, Gegidze makes sure your structure in Georgia is both legal and efficient.

Conclusion: Why Georgia Is Becoming the Go-To Hub

Georgia is not just another low-tax jurisdiction. It is a real country with clear laws, strong banks, and a government that welcomes IT and crypto businesses.

For Web3 startups, DAOs, and iGaming platforms, the combination is unbeatable:

0% corporate tax on foreign crypto revenue with Virtual Zone status.
1% tax for DAO contributors through IE registration.
0% VAT on crypto exchanges and conversions.
5% dividend tax with Georgian residency.
Modern banking and affordable living in Tbilisi and Batumi.

Other countries may promise more, but few deliver with the same clarity and speed. In Georgia, you can register a company in two days, apply for tax benefits within a week, and start paying contributors legally almost immediately.

If your competitors are already moving here, there is a reason. Georgia offers one of the cleanest paths in the world for crypto payroll, DAO payouts, and iGaming payments.

Ready to explore Georgia as your company’s crypto hub?

Book a free consultation with Gegidze.

From business registration and Virtual Zone status to VASP licensing, payroll, and translations, we make it simple to structure your Web3, DAO, or iGaming operations legally and efficiently.

Frequently asked questions (FAQ)

Is crypto legal in Georgia for businesses and individuals?

Yes, crypto is fully legal in Georgia. Individuals can own, trade, mine, and stake crypto without restrictions. Companies can use crypto commercially if they convert payments into GEL through licensed banks or exchanges.

What are the tax benefits for crypto companies in Georgia?

Crypto businesses enjoy some of the lowest taxes worldwide. Virtual Zone companies pay 0% corporate income tax on foreign revenue and only 5% on dividends. Individuals trading crypto face 0% capital gains tax. Freelancers and DAO contributors can register as Individual Entrepreneurs and pay just 1% turnover tax.

Do Web3 and iGaming companies need VASP registration in Georgia?

VASP registration in Georgia is required for crypto exchanges, custodial wallets, and platforms that manage client assets. If your business only uses crypto internally for payroll or DAO payouts, registration is usually not required.

Can DAOs pay contributors legally in Georgia?

Yes, DAOs can structure payouts through Georgian companies. DAO contributors can register as Individual Entrepreneurs and pay 1% turnover tax. This creates official tax records and avoids compliance risks while keeping costs low.

Why are Web3, DAOs, and iGaming companies choosing Georgia over Malta or Estonia?

Georgia offers faster company registration, lower taxes, and simpler compliance than Malta or Estonia. With no wealth tax, no inheritance tax, and no capital gains tax for individuals, Georgia combines credibility with affordability, making it one of the most attractive crypto hubs in Europ