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UK Tax Advisory

Do I pay tax in Georgia on income from a UK client?

If you perform the work while physically present in Georgia, it is considered Georgian source income. You may be eligible for the 1% Small Business tax rate.

How does the UK-Georgia Double Tax Treaty work?

The treaty ensures you don't pay tax twice on the same income. Typically, residence determines the primary taxing right, but withholding taxes can be credited.

Can I be a tax resident of both the UK and Georgia?

It is possible under domestic laws (dual residency), but the "Tie Breaker Rules" in the DTT will determine where you are resident for treaty purposes to resolve conflicts.

What if I am a UK "Non-Dom"?

Moving to Georgia might affect your UK tax status. You need careful planning to ensure you don't accidentally trigger UK tax liability while living abroad.

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The United Kingdom is one of Georgia's significant trade and investment partners. Georgia-UK tax relations are regulated by international treaties, yet the legislation of both countries is characterized by complexity and constant changes. UK Tax Advisory is a specialized legal service designed for individuals and legal entities whose business interests or income cross these two jurisdictions. This service is critical for those wishing to avoid double taxation, ensure compliance, and legally optimize financial flows.

The British tax system (HMRC) and the Georgian tax system differ fundamentally. While Georgia uses a territorial principle for individuals and a profit distribution model for companies, the UK relies on complex concepts of residence and domicile. Legal.ge connects you with experts who understand these differences and can protect your interests.

What Does This Service Cover?

Georgia-UK tax advisory services include:

  • Double Taxation Treaty (DTT) Application: Analyzing and practically applying the provisions of the Georgia-UK treaty to reduce taxes (e.g., claiming credit for withholding tax on dividends).
  • Tax Residency Planning: Determining an individual's residency status based on the UK Statutory Residence Test and the Tax Code of Georgia.
  • Business Structuring: Utilizing UK entities (Ltd, LLP) in international structures and their interaction with Georgian subsidiaries.
  • Employment and Payroll Tax Consulting: Taxation of remote workers employed by UK companies from Georgia (or vice versa).
  • "Non-Dom" Status Consultation: Explaining the "Non-Domiciled" tax regime (remittance basis) and assessing risks for Georgian citizens living in the UK.
  • VAT Issues: Managing VAT obligations arising from the supply of digital services between the two countries.

Common Scenarios

This service is essential for the following types of clients:

  • Freelancers and Contractors: A Georgian IT specialist contracted by a London-based company who wants to know where and how to pay taxes.
  • Business Relocation: A UK company opening an office in Georgia and interested in tax incentives (e.g., International Company status) and conditions for dividend repatriation.
  • Investors: A Georgian citizen receiving dividends from a UK company and wishing to credit the tax paid in the UK against their Georgian liability.
  • Expats: A UK citizen moving to Georgia needing advice on how to avoid UK taxes on worldwide income.

Georgian Legal Framework

The service is based on the Tax Code of Georgia and international legal acts. The fundamental document is the "Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Georgia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital." This document defines rules for the taxation of dividends, interest, royalties, and capital gains.

Lawyers also use the Law on Entrepreneurs of Georgia for structuring and rely on the OECD Model Convention for interpreting tax treaties. Correct interpretation of Article 82 (foreign source income) regarding income received from the UK is crucial.

Service Process

Collaboration with specialists on Legal.ge includes:

  1. Situational Analysis: Determining the client's ties to the UK and Georgia.
  2. Tax Regime Selection: Defining the optimal tax position (e.g., Small Business status in Georgia vs. Dividend recipient).
  3. DTT Application: Applying to tax authorities for benefits if necessary.
  4. Declaration: Assisting in preparing annual declarations to accurately reflect foreign income and taxes paid.

Why Choose Legal.ge?

The UK tax system is one of the most complex in the world. A mistake could cost you dearly in both London and Tbilisi. Legal.ge gives you access to professionals with experience working in both jurisdictions. Specialists registered on our platform will help you minimize risks and increase tax efficiency.

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