As you remember from the previous article, a Georgian resident for the entire current tax year shall be a physical person:
- · Who has actually stayed in the territory of Georgia for 183 or more days in any continuous 12-calendar-month period ending in that tax year;
- · A physical person who is High-net-worth individual and meets the requirements stipulated by the relevant Order;
- · A physical person who was in a foreign country in the public service of Georgia during that tax year.
And now, a change has been introduced in the legislation regarding obtaining Tax Residency, which will only affect High-net-worth individuals.
In this article, we will discuss the changes in the legislation that will come into force on April 15, 2023.
We already defined in the previous article, but here we will repeat the definition of a High-net worth individual.
High-net-worth individual is an individual whose proven assets exceed GEL3 million (approx. USD1 million) or whose annual income over the last 3 years exceeds GEL200,000 (approx. USD70 thousand).
With the implemented changes, the grounds for obtaining Georgian Residency have changed, in particular one of the requirements has become that a person must own property in Georgia, the value of which will be at least 500,000 USD equivalent in GEL.
A high-net-worth individual is one whose proven assets exceed GEL3 million (approximately USD1 million) or whose annual income over the last three years exceeds GEL200,000 (approximately
It is not specified what kind of property this should be, therefore, it is likely to mean any property that a person may have in Georgia.
So, Grounds for obtaining Georgian tax residency are:
a) A physical person is a High-net-worth individual, also, owns property worth at least 500,000 USD equivalent in GEL and has a residence permit/residence certificate/Georgian ID; or
b) A physical person is a High-net-worth individual, also, owns property worth at least 500,000 USD equivalent in GEL in Georgia and confirms that she/he received at least 25,000 GEL income from a source in Georgia in the last tax year prior to submitting the application.
If you are a person with significant property and want to obtain Georgian tax residency - contact our law firm in Tbilisi and we will promptly advise you on choosing the most convenient way to achieve this goal.
