Georgian Tax Residence Requirements
Georgian tax residency can be achieved through two primary methods. The first method involves spending a total of 183 days within a consecutive 12-month period in Georgia. This approach is suitable for individuals who plan to reside in Georgia for a significant portion of the year.
The second method is for high net worth individuals (HNWIs). This option is ideal for those who may not spend as much time in Georgia but possess substantial financial resources. Our tax services include assistance in acquiring Georgian tax residency for HNWIs.
Benefits of Georgia Tax Residency
Low tax ratesGeorgia has one of the lowest personal and business tax rates in the world. Fees for various activities are as follows:
- Personal income tax (salary): 20%
- VAT: 18% (local transactions)
- Corporate tax: 15%
- Income tax on dividend withdrawal: 5%
- Property tax: 1% (property in Georgia)
- Social security (pension fund): 2%
- Income tax for small business status: 1%
- Income tax for micro business status: 0%
Double Taxation AvoidanceGeorgia has active double taxation avoidance agreements with more than 55 countries. This treaty allows tax residents to avoid being taxed in the country from which they derive their income.
Exemption from foreign income the territorial tax system offers advantages to foreign source income tax. This means that the government will only tax you on Georgian income, not foreign income, when you have an active tax residency.
Why LTA’s Tax Services?
Our law firm in Tbilisi also offers assistance in obtaining a Georgia tax ID number, which is essential for financial and legal transactions within the country.
For more detailed information about Georgian tax residence benefits and tax consultation, our team is readily available to discuss your specific needs and guide you through the process.
FAQs
How to obtain a Georgia tax ID number?
You can submit an application at any service center of the Revenue Service of Georgia. Alternatively, the application can also be submitted online via the website of the Revenue Service.
What documents are required for the application?
For individuals, typically a passport or national ID card is sufficient. For legal entities, company documents and identification proof of the legal representative are required.
Can I be a tax resident in more than one country?
Yes, it is possible based on the tax treaty agreements between Georgia and other countries. It is important to check the specific rules and agreements to avoid double taxation.
