Digital Nomads in Georgia: Stay, Work and Tax

A remote professional may be able to enter or remain in Georgia under the rule applicable to their nationality, but that lawful stay does not determine the right to work, Georgian tax residence, the source of income or eligibility for the IT Residence Permit. These questions must be answered separately.

• Lawful stay: how long you may remain and whether a residence permit is needed.
• Work rights: whether the activity needs a decision, registration or falls within a current exemption.
• Tax: whether Georgia may tax the income and which registration or regime applies.
• Business structure: foreign employment, independent contracting, Georgian IE or Georgian company.
• Family: each accompanying person’s stay, residence and work position.

A remote employee paid by a foreign employer, an independent contractor serving foreign customers and a founder running a Georgian company do not have the same legal position. The contract, employer or client, economic beneficiary, work location and Georgian registrations all matter.

• Foreign employee: review payroll, tax residence, income source and whether the employer creates a Georgian obligation.
• Independent contractor: classify the service and decide whether a Georgian IE or company is appropriate.
• Founder: separate shareholder ownership from day-to-day work for the company.
• Local client or employer: assess the Georgian employee or self-employed right-to-work route.
• Keep contracts, invoices, work records and bank receipts consistent with the chosen model.

The Labour Migration Law includes an exemption for certain work or services performed for a non-resident where the work is connected with that non-resident’s activity outside Georgia. Other exemptions can apply to fully remote work for a Georgian employer that does not require entry into Georgia and to specified short-term or management activity.

• Identify the legal recipient and the economic beneficiary of the service.
• Check whether the work is connected with the non-resident’s activity outside Georgia.
• Record whether the person is an employee, independent contractor or Georgian entrepreneur.
• Check any exception relevant to an entrepreneurial natural person who needs residence for lawful stay.
• Keep written support for an exemption; residence and tax still need their own analysis.

A foreign remote professional does not receive a 1% tax rate automatically. A qualifying natural person must register as a Georgian Individual Entrepreneur, apply for Small Business Status, carry out a permitted activity and apply the regime only to income that belongs within it from the effective date.

• Typical technical delivery may include software development, coding, testing, systems administration, hosting, data processing and similar work.
• Consulting and other activities listed as prohibited for Small Business Status require particular care.
• Salary, dividends, interest, rent, royalties and other excluded income do not become 1% business turnover.
• VAT registration and cross-border place-of-supply rules remain separate.
• Georgian tax residence and any treaty position should be assessed from the person’s actual days and circumstances.

A remote IT professional may qualify for the dedicated IT Residence Permit only through one of its defined profiles and evidence tests. For the Georgian IE profile, that includes the accepted IT activity, Small Business Status, professional history, income evidence and the current work-right position.

• Check passport validity and lawful-stay dates before choosing a filing timetable.
• Prepare two years of relevant IT evidence and the preceding-year income/payment chronology if relying on the employee or IE profile.
• Plan spouse and child residence documents separately; family residence does not automatically authorise work.
• Prepare bank KYC with the real contracts, customers, source of funds and expected flows.
• Calendar monthly tax, VAT, residence, work-right and renewal deadlines after setup.