The Rule for Determining Residency
Under Article 34 of the Tax Code, a resident of Georgia for the entire current tax year is an individual who is physically present in Georgia for 183 days or more in any continuous period of 12 calendar months ending in that tax year. A person who during the tax year was abroad in Georgian state service is also a resident. Time spent abroad specifically for medical treatment, rest, business travel or study counts as time present in Georgia. Not counted is time present in Georgia as a person of diplomatic or consular status, as an employee of an international organization, or in transit from one foreign country to another. Planning the termination of residency starts precisely with counting these days.
Special Cases and the Periodicity of Status
Residency may be granted to a person secured by significant property under the procedure and conditions set by the Minister of Finance, and in a determined case — to a citizen of a foreign country. Where an individual’s residency is not established with respect to any country, on application to the tax authority the person is deemed a resident of Georgia if a Georgian citizen. The status of resident or non-resident is determined for each tax period, and days counted for a previous period are not counted again in the next. Article 35 defines the place of residence — the place a person habitually chooses to live; where several homes exist, the place is determined by the tax authority in agreement with the person.
After Losing Residency: What Remains Taxable
Under Article 79, income tax payers are a resident individual and a non-resident individual receiving income from a source in Georgia. After termination of residency the person is no longer taxed on worldwide income, but Georgian-source income remains taxable: under Article 80, a non-resident’s income from the sale of property is taxed on the difference between the aggregate Georgian-source income of the year and related deductions. Article 104 lists Georgian sources: employment, supply of goods, services rendered in Georgia, activity of a permanent establishment, dividends and income from the sale of shares received from a resident, interest paid by a resident, pension and stipend, royalty, income from immovable property, and shares of an enterprise whose assets derive more than 50 percent of their value from Georgian immovable property. The place of receipt of the funds is disregarded in determining the source.
Place of Service and Other Sources
Article 104 defines in detail when a service is treated as rendered in Georgia: where it is physically rendered on the territory of Georgia; where it is connected to immovable or movable property located in Georgia; where it is connected to securities issued by a resident; where it concerns culture, art, education, tourism or sport and is physically rendered in Georgia; and where it concerns cargo carriage or passenger transport beginning or ending in Georgia. Also treated as a Georgian source is income from the cancellation of obligations through the write-off of hopeless debts connected with economic activity carried out in Georgia. Under Article 80, the taxable income of a non-resident acting through a permanent establishment is the difference between the gross income connected with the establishment from Georgian sources and the deductions, while income not connected with it is taxed at source without deductions. In planning a change of status, these rules precisely determine which flows remain on the Georgian base.
The Stages of Planning a Change of Status
Planning the termination of residency consists of three stages. The first is the counting of days: a detailed calendar of actual presence, state service, departures for treatment or study, and non-counted periods — it is precisely this record that determines which status attaches to which tax year. The second is the map of income: checking the list of Georgian sources against the person's own flows — royalty, dividends, immovable property, services — shows exactly what remains on the Georgian base. The third is the corroborating documentation: evidence of citizenship, place of residence and ties to other countries, since the rules of other states are determined by separate legislation and Georgian planning begins with taking them into account. The three stages together give the foundation of a decision that will defend the person's position both before the tax authority and in court. Because the status is determined separately for each period, the plan is not a single calculation but a rolling calendar: each year is verified against the record afresh, and the days of a previous period are never recounted — a discipline that turns an abstract 183-day rule into a manageable, documented practice.
Frequently Asked Questions
Below we answer the questions most frequently raised about terminating tax residency.
How many days make a person a resident?
183 days or more of actual presence in any continuous period of 12 calendar months ending in the current tax year.
Does going abroad for treatment count as presence?
Yes — time spent abroad specifically for treatment, rest, secondment or study counts as time present in Georgia.
How is status determined year to year?
Separately for each tax period; days counted in a previous period are not recounted in the next.
What is taxed after becoming a non-resident?
Only income from sources in Georgia, according to the list in Article 104.
How We Help on Legal.ge
On Legal.ge we help individuals plan their residency status: counting days of presence, analyzing Georgian-source income and establishing the consequences of a change of status. Contact our team.