How income tax works in Georgia
Georgia applies a flat 20% personal income tax to Georgian-source income. Salary, contractor fees, business income, rental income and other taxable receipts are generally in scope.
Resident individuals are exempt on foreign-source income. Georgia tax residence is generally based on being in the country for 183 days or more in any continuous 12-month period.
Income taxed at source is usually final for individuals. Annual returns are due by 1 April for income not taxed at source, including taxable private asset sales.
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Income tax brackets in Georgia
| Bracket | Rate | Notes |
|---|---|---|
| All taxable Georgian-source personal income | 20% | Georgia does not use progressive personal income tax brackets. |
| Foreign-source income of resident individuals | 0% | Resident individuals are exempt on foreign-source income. |
Tax rates at a glance
- Salary tax
- 20%Flat
- Business income tax
- 20%
- Rental income tax
- 20%
- Foreign-source income for residents
- 0%
- Nonresident Georgian-source salary
- 20%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesContractorsExpatsRemote foundersLandlords
Watch out for
- Salary withholding is not the only payroll cost. Mandatory pension contributions apply to most employees even though Georgia has no classic social security system.
- Residence matters. Georgia generally treats individuals as tax resident after 183 days in a continuous 12-month period.
- If your income is not taxed at source, you usually need to file by 1 April of the following year.
Frequently asked questions
Do expats pay income tax in Georgia?
Yes, if they earn Georgian-source income. Resident expats are generally taxed at 20% on Georgian-source income, but resident individuals are exempt on foreign-source income.
Is there withholding tax on salary in Georgia?
Salary is generally taxed at source at 20%. The employer withholds the tax, and pension contributions also apply under the mandatory scheme.
When is the Georgian income tax return due?
For income not taxed at source, including taxable private asset sales, the annual return is due by 1 April of the following year.