Quick answer — Georgian individual entrepreneur at a glance. In Georgia, you can register as an individual entrepreneur (IE) at a Public Service Hall, often in a single day, and then apply for Small Business Status, which taxes eligible turnover at 1% up to GEL 500,000 a year. Some activities are excluded, including many consulting services. A Georgian LLC is the alternative: it pays 15% only on distributed profits, with 5% tax on dividends.
Georgia's 1% regime is one of the most talked-about tax options among location-independent freelancers. Combined with easy entry for many nationalities, low living costs, simple registration and fast bank onboarding, it has made Tbilisi and Batumi popular bases for developers, designers and online entrepreneurs.
The 1% rate is real, but it is not universal. It applies only to individual entrepreneurs with Small Business Status, only up to an annual turnover cap, and only for eligible activities. Consulting is a common excluded activity, and how your work is described matters. To benefit personally, you also need to become Georgian tax resident and break residency in your previous country.
It does not suit founders whose main activity is consulting or another excluded activity, businesses above the turnover cap, or founders who stay tax resident in a high-tax country. It is not designed for locally employed expats.
Comparing options outside the EU? See our guide to low-tax countries in Europe outside the EU.
If your turnover passes the cap during the year, a higher rate applies to the excess and you may lose the status. Check the current excluded activities list before registering.
If you are comparing destinations, see Serbian company registration for foreigners and Montenegro business setup.
You become Georgian tax resident if you spend more than 183 days in Georgia in any continuous 12-month period ending in the tax year. High-net-worth individuals can also obtain residency status through a separate procedure. Georgia generally taxes residents only on Georgian-source income, which is why the IE's business income is the key.
The tax authority looks at what you actually do. Software development, design and many digital services are commonly eligible, while advisory or consulting work is excluded. Describe your activity accurately at registration and in your contracts and invoices.
To benefit, you must stop being tax resident in your previous country. Check exit taxes, extended liability rules and treaty tie-breakers, and be ready to prove your Georgian residency with a tax residency certificate.
Georgia is one of the cheapest places in the world to set up and run a business.
Amounts are indicative.
For eligible activities under the cap, the IE is hard to beat. For excluded activities, the LLC's tax on distributed profits only is the next-best option.
Georgian banks are known for onboarding foreigners quickly, often in a single visit, with multi-currency accounts. Policies for some nationalities have tightened, so bring proof of address, a description of your activity and, if possible, client contracts.
The Georgia Business Bank Comparison Guide compares the main banks for IEs and LLCs owned by foreigners — get it when you start your Georgian setup with Heavnn.
It is the Small Business Status available to individual entrepreneurs, which taxes turnover at 1% up to GEL 500,000 a year, provided the activity is eligible.
Activities requiring a licence or permit, consulting, and several other professional services are excluded. Turnover above GEL 500,000 also ends eligibility.
You can register without being resident, but to benefit personally and avoid tax at home, you generally need to become Georgian tax resident by spending more than 183 days there in a 12-month period, and to stop being resident in your previous country.
An IE with Small Business Status is cheaper for eligible activities under the cap. An LLC suits excluded activities, higher turnover, or founders who want limited liability and to retain profits untaxed.
An individual entrepreneur can often be registered at a Public Service Hall on the same day, and Small Business Status can be requested right after.
Georgia's 1% depends on your activity and your residency. Heavnn checks both before you register.
Start your Georgian setup with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
