The Tax Framework for Cryptocurrency
In Georgia cryptocurrency is taxed under the general norms of personal income tax: the Tax Code provides no special rate for cryptocurrency, so the taxpayer, the object of taxation and the rate are determined by the general rules. The taxpayer is a resident natural person and a non-resident natural person who receives income from a source existing in Georgia (Article 79); the object of taxation is taxable income — the difference between the aggregate income received during a calendar year and deductions (Article 80); and the general rate is 20 percent (Article 81).
Tax obligations presume market entry: if your crypto business provides services over customers’ virtual assets, National Bank registration comes first — our VASP licence in Georgia guide covers that cycle.
The surplus from operations with crypto assets fits the general model of income from the realization of property: the Code lists surpluses from the supply of assets defined by the Code among property-realization incomes, so a sale or exchange generates a surplus taxed precisely under these general norms. For a resident this means annual aggregation with other income and the subtraction of deductions; for a non-resident, verifying the Georgian-source connection.
Who Is the Taxpayer and What Is Taxed
Under Article 79, the taxpayer of income tax is a resident natural person and a non-resident natural person receiving income from a source in Georgia. For a resident, the object of taxation is taxable income — the difference between the aggregate income received during the calendar year and the deductions provided by the Code for that period. For a non-resident carrying out activity through a permanent establishment in Georgia, the object is determined analogously from the income connected with the permanent establishment.
For the realization of property the Code sets a separate rule: a non-resident natural person who receives income from the realization of property is a taxpayer of income tax on the aggregate income received from a source in Georgia during the calendar year, reduced by deductions connected with receiving such income. Property-realization incomes include, among others, the surplus from the supply of assets defined by the Code and the surplus from the realization of other property — precisely the categories into which trading in crypto assets falls.
The Rate — 20 Percent
A natural person's taxable income is taxed at 20 percent, unless otherwise provided by the Code (Article 81). This general rate extends to the surplus from cryptocurrency as well, since the Code has no crypto-specific benefit. The preferential rates that exist in the Code are tied to other, specifically defined objects and do not concern cryptocurrency; therefore, when planning a crypto surplus, the liability should be modeled precisely on the general 20 percent framework.
Practical Planning and Declaration
The practical questions of cryptocurrency taxation — establishing the acquisition cost, fixing the moment of exchange and documenting operations — are resolved within this general framework: since the object is the surplus, proving the initial cost of each disposal is in the taxpayer's interest, and since income is aggregated by calendar year, the year-end calculation requires data on every operation. Other rules — declaration forms and deadlines — are established by separate provisions and lie beyond this page.
The deduction regime is likewise defined by the general rules: the Code regulates which amounts are subtracted from aggregate income before establishing the taxable base, and for cryptocurrency two practical anchors matter there. The first is the documentary trail: the date, rate and purpose of every exchange must be fixed so that the year-end calculation is reconstructable. The second is the initial cost: since the object is the surplus, establishing and substantiating the acquisition raises the taxpayer's position; its absence is recorded as a risk of inflating the base. Without these two disciplines even the application of the 20 percent rate becomes a field of disputes, where the burden of documentation determines the outcome.
For non-residents the qualification of the source connection requires separate analysis: income received from a source in Georgia and the deductions connected with it are aggregated over the year, and the existence or absence of a permanent establishment changes the manner of computing the base. For a trader operating from abroad this is therefore the first question: which operations fall into the Georgian base, and only afterwards is the 20 percent liability computed.
Frequently Asked Questions
Is there a special rate for cryptocurrency?
No. The Tax Code provides no crypto-specific rate; a natural person's taxable income is taxed under the general rule — 20 percent.
What is the object of taxation?
Taxable income — the difference between the calendar year's aggregate income and the deductions provided by the Code; crypto exchanges are reflected as surplus.
Who is the taxpayer?
A resident natural person; also a non-resident natural person receiving income from a source existing in Georgia.
How is a non-resident's property sale taxed?
The aggregate income from a Georgian source, reduced by corresponding deductions, is taxed at the general rate.
How We Help on Legal.ge
Cryptocurrency taxation depends on documentary discipline and the correct application of the general norms. On the Legal.ge platform you can find an experienced tax law lawyer who will help you calculate the surplus, substantiate the deductions and prepare the declaration. Choose a specialist and manage your crypto income transparently.