Taxes for freelancers in Georgia: four regimes

Georgia is popular with freelancers and remote workers precisely because of its tax regimes. But "low taxes" is not one regime, it is several different ones, and the choice between them is driven by turnover and by the nature of the work.

The four options

Micro business

A zero rate with turnover up to 30,000 GEL a year. It suits a start or a side income, but the ceiling is low: a couple of larger projects clear it easily.

Small business

The main working regime for a freelancer: 1% of turnover with annual turnover up to 500,000 GEL. This is what most relocated specialists choose.

Virtual Zone Person

This is no longer an IE but an LLC with a special status for exporting IT services. Profit is untaxed, but distributing dividends creates a tax. The regime makes sense at meaningful turnover with clients outside Georgia.

How to start

• obtain a personal identification number;
• register as an individual entrepreneur;
• apply for the status you need — it is not granted automatically;
• open an account and activate the RS.ge portal.

The critical point: small business status has to be requested separately. Registering as an IE by itself puts you on the standard regime, not on the 1%.

Monthly duties

Even at 1% the reporting and the source documents remain. The return is filed monthly, including in months with no income. Keep contracts and invoices from the start: they are what evidences the nature of the activity in a review.

About VAT

A low turnover rate does not remove VAT. Above 100,000 GEL of turnover over 12 months registration is mandatory regardless of whether you pay the 1%. This is the most common surprise for a growing freelancer.

Common mistakes

• starting work before the status is registered;
• not tracking turnover, so thresholds pass unnoticed;
• personal and business receipts flowing through one account;
• no client contracts evidencing the nature of the services.

If you are relocating, or already working but unsure about the regime, start with a consultation. We will run the options on your turnover and register the status you choose.