Georgia is internationally known as one of the most liberal and attractive tax jurisdictions, making it a popular destination for expats, digital nomads, and international investors. However, tax planning for expats involves more than just enjoying low taxes; it is a complex process requiring the harmonization of the Georgian tax system with the regulations of the individual's home country and international treaties. An incorrectly planned tax structure can lead to double taxation, fines, or loss of residency status. Therefore, qualified tax planning is critical for financial efficiency and legal security.
This service offers full tax consultation and planning for foreign citizens. The service includes: selecting the optimal tax regime (e.g., "Small Business" status with 1% tax, Virtual Zone Person status for the IT sector, or International Company status); determining personal income tax obligations (especially on foreign-sourced income); utilizing Double Taxation Treaties (DTT); and declaring property tax. Experts also assist in opening bank accounts and legally managing financial flows in compliance with CRS (Common Reporting Standard) regulations.
In real life, tax planning is essential for expats of various profiles. For example, an American freelancer working from Georgia must consider both the Tax Code of Georgia and US tax obligations (citizenship-based taxation). Another example is a Russian or European investor buying real estate in Tbilisi and renting it out—they need an effective scheme to minimize income tax (e.g., 5% tax on residential rental income). Also, for cryptocurrency traders, it is important to know that income from the sale of crypto assets is exempt from income tax in Georgia.
The legal framework relies on the "Tax Code of Georgia." According to the Code, a Georgian resident (a person present in the country for more than 183 days in a 12-month period) is taxed on worldwide income, though there is a significant exception: income received from a foreign source is exempt from tax. The definition of "foreign source" is precisely the technical nuance where a lawyer's help is crucial, as remote work from Georgia is often considered a Georgian source. Also important is the "Small Business" status, which allows individual entrepreneurs to be taxed at 1% for turnover up to 500,000 GEL.
The process begins with an analysis of the client's financial portrait: income sources, citizenship, and residency in other countries. The tax expert develops a strategy—whether it is better to register as an Individual Entrepreneur, open an LLC, or remain a natural person. Then registration with the Revenue Service (RS.ge) takes place, necessary statuses are granted, and a schedule for filing declarations is established. The lawyer also ensures communication with tax authorities in case of any misunderstandings.
Legal.ge is a platform where you will find the best tax lawyers and consultants specializing in expat services. Georgia's tax system offers unique opportunities, but only with proper navigation. Do not overpay and do not create risks due to ignorance. Plan your taxes with professionals on Legal.ge.
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