Expat Tax Residency in Georgia

Georgia (the Caucasus country, not the US state) operates one of the most straightforward personal tax systems in the world: a flat rate, broad territorial exemption for residents, and two documented pathways to becoming a tax resident. Rules below reflect the Tax Code of Georgia and are cross-checked against PwC Worldwide Tax Summaries (January 2026 edition).

Does Georgia tax foreign income?

Under Georgia's territorial taxation principle, a resident individual is exempt from Georgian personal income tax on income that does not have a Georgian source [PwC-GE]. This means earnings from employment abroad, foreign dividends, overseas rental income, and most other non-Georgian receipts are not subject to Georgian income tax in the hands of a Georgian tax resident. The exemption is codified in the Tax Code of Georgia and confirmed by the Revenue Service of Georgia (rs.ge). There is no requirement to report foreign income in an annual return, and no worldwide income inclusion. Georgia has no wealth tax, no inheritance tax, and no capital gains tax on cryptocurrency transactions [TaxAdv-GE].

How do you become a Georgian tax resident?

An individual is recognised as a tax resident of Georgia if they were actually located in Georgia for 183 days or more in any continuous 12-month period ending in the current tax year [PwC-GE-Res]. The 183 days need not be consecutive -- cumulative days within any rolling 12-month window count. There is no separate calendar-year lock; the test slides. Days spent in Georgia for medical treatment or transit may be excluded under specific circumstances. Once the 183-day threshold is crossed, the Revenue Service of Georgia issues a tax residency certificate on application, which can be used to claim treaty benefits and demonstrate non-residency in a prior home country. Residency is re-evaluated annually; prior-year day-counts do not roll over [PwC-GE-Res].

What is the HNWI tax residency programme?

Individuals who cannot or prefer not to satisfy the 183-day physical presence test may apply for Georgian tax residency under the High Net Worth Individual (HNWI) programme, a separate legal track established by ministerial ordinance and administered by the Revenue Service [HNWI-Andersen]. Applicants must simultaneously satisfy three conditions drawn from one of two financial tiers:

Applications go to the Revenue Service and are forwarded to the Minister of Finance within seven working days of approval. HNWI residency is granted for one calendar year and must be renewed annually by resubmitting updated financial documentation [HNWI-Andersen]. There is no minimum physical presence requirement under the HNWI route; the programme is designed for internationally mobile individuals with genuine investment in the country.

How is Georgian-source income taxed?

Personal income from Georgian sources is subject to a flat 20% personal income tax rate [PwC-GE-PIT]. This covers employment income (salary, wages, benefits in kind), income from independent economic activity, and other Georgian-sourced receipts. There are no graduated bands and no standard personal allowance against the 20% rate -- employees cannot claim deductions [PwC-GE-Ded]. Capital gains on the sale of vehicles or real property are taxed at a separate flat rate of 5% [PwC-GE-Inc]. Rental income from Georgian property is taxed at 5% if no expense deductions are claimed. Mandatory pension contributions apply from 2019: employees contribute 2% of salary, employers 2%, and the government subsidises 2% (or 1% for incomes between 24,000 and 60,000 GEL) [PwC-GE-Oth].

What is the 1% small-business regime?

Individual entrepreneurs (sole traders) with annual turnover below 500,000 GEL may elect small-business status and pay 1% tax on gross turnover rather than the 20% personal income tax on net profit [PwC-GE-PIT]. The rate rises to 3% for turnover above 500,000 GEL. A separate micro-business category applies to self-employed individuals with no employees earning under 30,000 GEL annually -- these taxpayers receive complete exemption from business income tax [PwC-GE-PIT]. The small-business and micro-business regimes are available to Georgian tax residents and do not require HNWI status. Electing the small-business regime affects only the Georgian-source business income; the territorial exemption on foreign-source income remains unchanged. For a broader overview of the country, see the Georgia country overview. For professionals registered in Georgia providing cross-border tax services, see the TaxPros directory for Georgia.

The rules summarised here are drawn from publicly available sources current as of June 2026. Thresholds and rates under the Tax Code of Georgia can change by legislative amendment; consult a qualified local tax professional for advice specific to your situation.