Tax residency planning and acquisition in Georgia is becoming increasingly sought after by international investors, digital nomads, and High Net Worth Individuals (HNWI). Georgian tax residency offers significant advantages, particularly due to the territorial taxation principle, under which individuals are exempt from income tax on foreign-sourced income. However, obtaining and maintaining residency status requires precise knowledge of legislation and proper adherence to procedures. There are two main ways to obtain residency: by physical presence (183-day rule) and through the High Net Worth Individual (HNWI) program. Each has its own specifics, deadlines, and documentation requirements. Incorrect planning can lead to problems with tax authorities in both Georgia and other countries, making qualified legal support essential.
This service encompasses full assistance in the tax residency acquisition process. Specialists on our platform offer:
- Residency by 183-Day Rule: Analyzing border crossing data and preparing applications to the Revenue Service to confirm residency based on physical presence.
- High Net Worth Individual (HNWI) Program: utilizing the special program that does not require spending 183 days in Georgia. It involves preparing documents proving wealth (assets equivalent to 500,000 USD) and income (200,000 GEL annual income).
- Obtaining Tax Residency Certificate: Securing the official document in English for presentation in other jurisdictions.
- Tax Liability Analysis: Consulting on which income will be taxed in Georgia and which will be considered foreign-sourced.
- CRS/AEOI Consultation: Determining the status of bank accounts within the framework of the Common Reporting Standard for automatic exchange of information.
- Residency Cancellation: Procedures for terminating tax residency upon leaving the country.
Residency planning is particularly relevant in several scenarios. For instance, an investor with businesses in Europe buys real estate in Georgia and wants to obtain residency via the HNWI program to benefit from Georgia's liberal tax regime. Another example is a "digital nomad" who spends most of the year in Georgia; they need a residency certificate to prove to their home country that they are tax residents elsewhere. Also, a businessperson planning asset diversification uses Georgian residency as a tool for global tax burden optimization. In all these cases, proper collection of evidence is crucial.
Legal regulation is based on Article 34 of the Tax Code of Georgia, which defines general residency rules. The HNWI program is regulated by the Order of the Minister of Finance of Georgia "On the Rule for Granting Georgian Tax Residency to High Net Worth Individuals." Also important is the Law of Georgia on the Legal Status of Aliens and Stateless Persons, as residency often requires a residence permit (although requirements differ for the HNWI program). Thorough knowledge of these acts ensures a smooth process.
The process begins with an analysis of the client's financial situation and goals. In the case of the 183-day rule, the specialist requests passport data and verifies the border crossing history. For the HNWI program, the process is more complex: it requires asset valuation, apostille and translation of income-proving documents (bank statements, contracts), and recommendation letters. The application is then sent to the Revenue Service. Upon approval, a Tax Residency Certificate is issued. It is important to remember that residency is granted for a specific tax year and requires annual renewal.
Legal.ge is your guide to the Georgian tax system. Here you can find experts who have successfully completed dozens of residency cases, including complex HNWI cases. Lawyers registered on the platform will help you not only obtain the status but also with subsequent tax planning. Choose qualified support on Legal.ge and make Georgian tax residency part of your financial success.
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