Retirement Tax Planning in Tbilisi, Georgia

Retirement Tax Planning

How much contribution is exempt in a voluntary private pension scheme?

A contribution of up to a total of 6 000 GEL per year is not subject to income tax.

Are the assets of the funded pension scheme taxed?

As a rule no — the contribution, the accrued benefit and the paid pension are exempt; the exceptions are amounts returned on an erroneous or excessive contribution, on leaving the scheme, or on permanently leaving the country.

Who is the tax agent for pension payments?

The payer of the pension, the asset management company, the insurer, the pension company or the Pension Fund of Georgia — according to the character of the specific payment.

How is income from fund units taxed?

The unit holder reports independently; a dividend and the surplus from a sale are taxed at 15 percent, and at 5 percent for a fund invested only in deposits and financial instruments.

4 min·8 Feb 2026

The Legal Regime for the Taxation of Pension Savings

The Tax Code of Georgia governs the taxation of pension savings through two distinct regimes: one applies to participants of the funded pension scheme, the other to voluntary private pension schemes. The law determines which contributions and benefits are exempt from income tax, which cases remain taxable, who acts as tax agent and how units of investment funds are taxed. This page explains these rules as written in the Code, so that retirement decisions rest on an exact legal foundation.

Exemptions and Exceptions in the Funded Pension Scheme

Exempt from income tax are the pension contributions made to the individual pension account of a participant of the funded scheme, the benefit accrued on them, and the pension or pension assets paid out under the relevant legislation. The exemption has exceptions: taxable is the amount of an erroneously or excessively paid contribution to be returned to the participant, with the accrued benefit; the amount corresponding to a contribution returned to an employee who has left the scheme, with the accrued benefit; and the amount corresponding to pension assets returned upon permanently leaving Georgia. In these cases taxation follows the rate determined by another provision of the Code — a circumstance that matters for those who terminate participation or leave the country.

The Rules of the Voluntary Private Pension Scheme

In a voluntary private pension scheme, exempt is the pension contribution made by or on behalf of a participant up to a total of 6 000 GEL per year. The benefit received as a result of participation is also exempt — except where pension assets are withdrawn before certain events defined by law. Untaxed likewise is the receipt, upon reaching pension age, early retirement or disability, of the assets recorded on the personal pension account through programmatic withdrawal or as an annuity. In the case of a lump-sum payment — apart from a withdrawal of the pension by the beneficiary — the contributions made within the exemption are taxed at the relevant rate of the Code.