Georgia's 1% Tax Regime: The Individual Entrepreneur Guide for Nomads

Georgia doesn't have a "digital nomad visa" in the traditional sense — it doesn't need one. Most passports get 365 days visa-free, and the real draw is what happens once you're there: Individual Entrepreneur (IE) status, which taxes freelance and consulting income at a flat 1% of turnover. This is genuinely one of the lowest tax-residency barriers anywhere, which is why Tbilisi has quietly become a long-stay nomad hub.

How It Actually Works

You don't need Georgian citizenship or permanent residency to register as an Individual Entrepreneur — anyone can set up the status. The catch is the 1% rate specifically: to actually be taxed at 1% (rather than standard rates), you need to be a Georgian tax resident, which generally means spending 183+ days a year in the country.

• 1% tax applies to turnover — total revenue received, not profit. There are no expense deductions under this regime.
• The 1% rate applies up to 500,000 GEL (~$180,000) in annual turnover; anything above that is taxed at 3% on the excess.
• Certain professions (some regulated fields) are excluded from Small Business Status — check eligibility for your specific profession before assuming you qualify.

How to Register

1. Decide whether to register in person or remotely.
2. For remote registration: prepare a notarized and apostilled power of attorney authorizing a Georgian representative to submit your documents.
3. Your representative submits your application to the Revenue Service of Georgia.
4. Registration is typically approved within 1–3 business days.
5. Once registered, you'll need a Georgian bank account to receive income and pay tax.

Staying Compliant

• File and pay the 1% tax on a regular schedule (monthly or quarterly, depending on current Revenue Service rules)
• Track your annual turnover carefully — crossing 500,000 GEL mid-year shifts the excess to the 3% bracket
• Keep records of the 183-day residency count if you're relying on it for the 1% rate specifically

What This Doesn't Solve

Georgia's 1% regime handles your Georgian tax obligation — it says nothing about your home country's tax rules. Many countries tax citizens or residents on worldwide income regardless of where it's earned or taxed. US citizens, in particular, remain subject to US taxation on IE income even after paying Georgia's 1%, though foreign tax credits and exclusions can reduce the US bill. This is a genuine cross-border tax question worth a real consultation once your income is meaningful.