Tax system in Georgia
Georgia taxes most personal income at a flat 20% rate, but resident individuals are exempt on foreign-source income. Salary, contractor income, rental income and many other Georgian-source receipts are in scope.
There is no separate net wealth tax or inheritance tax, but individuals can still owe property tax on real estate, cars and other assets once family-income thresholds are crossed.
{ "Companies generally follow the Estonian model": "retained profits are not taxed until distribution, while dividends and other deemed distributions can trigger 15% corporate tax. Banks, credit unions, microfinance organisations and loan providers are taxed under a separate regime." }
VAT is 18% and mandatory registration starts at GEL 100,000 of taxable turnover in any continuous 12-month period. There are no traditional social security contributions, but a mandatory pension scheme applies to most employees.
Tax rates at a glance
- Income tax
- 20%Flat
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 20% / 5%
- Corporate tax
- 15%
- Dividend tax
- 5%
- VAT
- 18%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersInvestorsExpatsProperty ownersIT businesses
Watch out for
- Georgia is not tax-free. Property tax, VAT, pension contributions, withholding tax and filing deadlines still matter.
- Family-income thresholds drive Georgia property tax for individuals, and land tax is separate.
- Recent 2026 changes include a targeted dividend/income-tax exemption for certain dividends from non-financial institutions and new reporting for international controlled transactions.
Frequently asked questions
Is Georgia a low-tax country?
Georgia is relatively low-tax for business owners because it taxes company distributions rather than retained profits. Individuals still face a 20% flat income tax on Georgian-source income, plus VAT, property tax and pension costs.
Does Georgia have wealth tax or inheritance tax?
No separate net wealth tax or inheritance tax exists in Georgia. However, property tax can apply to real estate, cars and other assets once family-income thresholds are met.
Is Georgia good for founders?
It can be, especially for founders who want the Estonian-style corporate tax model and an active treaty network. Banking, VAT, substance and country-specific reporting still need careful planning.