Introduction:

Nestled at the crossroads of Europe and Asia, Georgia has steadily built a reputation as one of the most attractive low-tax jurisdictions for both entrepreneurs and internationally mobile individuals. In recent years, its government has pursued a deliberate policy of economic liberalization, modernized financial regulation, and investment-friendly reforms that collectively position the country as a genuine tax haven—albeit one with full international legitimacy. With robust GDP growth, an open-market orientation, and strategic integration with global trade flows, Georgia offers a stable and competitive environment for business and personal tax planning.  

For foreign investors and digital entrepreneurs, Georgia’s tax system presents several key advantages. The country levies a flat individual income tax rate of just 20%, one of the lowest in the region, and dividend income received by individuals is rated even more favorably. For companies, Georgia operates a so-called “Estonian model” of corporate taxation: retained and reinvested profits are not taxed at all—corporate tax is paid only when profits are distributed. This dramatically reduces the effective tax burden on growing enterprises, particularly for those accustomed to higher tax pressures in Europe. Additionally, value-added tax (VAT) is moderate, and many international service businesses structured in Georgia avoid exposure to VAT altogether.  

Georgia’s appeal extends far beyond attractive rates. The administrative framework has been simplified, with straightforward company formation procedures, minimal bureaucratic hurdles, and transparent digital systems for tax filing and compliance. Foreigners can easily open and operate local entities, making the jurisdiction especially popular as a base for IT services, consulting, e-commerce, and trading businesses. Residency can be obtained under relatively accessible conditions, providing a legally secure platform for global mobility.  

Of particular relevance to Europeans is Georgia’s growing network of double taxation agreements (DTAs). Notably, Georgia has concluded treaties with Germany, Austria, and Switzerland, among others. These agreements ensure that income such as dividends, interest, and royalties are not subject to double taxation, promoting clarity and reducing overall liabilities for international taxpayers. For German, Austrian, and Swiss residents doing business in Georgia—or for Georgians with interests in these states—this creates a clear framework for efficient cross-border tax planning in compliance with both jurisdictions.  

Altogether, Georgia combines the fiscal advantages traditionally associated with tax havens with the respectability of a transparent, reform-oriented economy. This unique positioning makes it a compelling destination for businesses and individuals seeking to optimize their tax strategy while maintaining strong global connections.  

On the Map & What Others Say

Georgia sits at the crossroads of Eastern Europe and Western Asia, a transcontinental nation nestled in the South Caucasus region. To the north, it shares a lengthy border with Russia, while to the south it neighbors Turkey and Armenia, and to the southeast, Azerbaijan. The western edge of the country opens to the Black Sea coast, giving Georgia a strategic maritime link. Its capital, Tbilisi, lies in the heart of the country, cradled by hills and the Kura River, symbolizing Georgia’s role throughout history as a meeting point of cultures, trade routes, and empires.

As a destination, Georgia has gained growing international recognition for its distinctive combination of natural beauty, historic charm, and warm hospitality. Travel writers often highlight the striking diversity of landscapes—from Black Sea beaches to lush wine valleys and the snow-capped Caucasus Mountains. Lifestyle and leisure publications have praised the capital, Tbilisi, for its bohemian café culture, vibrant arts scene, and gracefully restored Old Town, blending European and Middle Eastern influences. Bloggers frequently note the generous spirit of Georgian hospitality, describing encounters where locals welcomed them with traditional home-cooked feasts and glasses of the country’s signature qvevri (clay-vessel) wine.  

Regional and international media outlets alike often characterize Georgia as both welcoming and surprisingly affordable, particularly for expatriates seeking a high quality of life at lower costs compared to many Western European cities. Coupled with a deeply rooted cultural heritage—the polyphonic music, unique alphabet, and centuries-old Orthodox churches—Georgia is increasingly portrayed not just as an emerging travel destination, but also as a country where the richness of daily life and traditions remain central to its character.

How the Tax System Works in Georgia

Georgia has earned a global reputation for maintaining one of the most straightforward and competitive tax systems, particularly among emerging economies. Its approach emphasizes simplicity, low rates, and growth-oriented policies that are designed to attract both foreign investors and entrepreneurs seeking a business-friendly jurisdiction. At the core of Georgia’s tax framework is a flat tax concept, where most key taxes are levied at uniform rates, and administration is streamlined through digital platforms.

The tax system is overseen by the Revenue Service of Georgia, which operates under the Ministry of Finance. Unlike many jurisdictions, compliance is intentionally designed to be efficient: filing procedures are digital, reporting requirements are relatively light, and the overall tax burden is notably lower than in most European or OECD countries. For example, Georgia ranks consistently high on international indexes that measure ease of paying taxes.

In practical terms, Georgia’s system covers several broad categories:  

• Personal income taxation – Georgia applies a flat tax regime on income, meaning that all individual income sourced in Georgia is taxed at a single rate rather than progressively. The system is designed to be uncomplicated, with tax liabilities clearly defined and relatively easy to calculate. For context, a resident earning the equivalent of about $20,000 per year would see roughly the same flat percentage of their income taxed as someone earning $200,000.

• Corporate taxation – At the corporate level, one of Georgia’s most distinguishing features is its “Estonian-style” corporate tax system. Companies are not taxed on their annual profits unless those profits are distributed as dividends or deemed profit distributions. This deferral system encourages reinvestment within the country and provides significant planning opportunities for businesses. For instance, a company generating $500,000 in profit could reinvest the full amount without immediate corporate tax liability. Tax only becomes payable when, say, $100,000 is distributed to shareholders.  

• Other major taxes– Beyond personal and corporate levies, taxpayers in Georgia may encounter value-added tax (VAT), excise duties, and property taxes. VAT, in particular, applies to most goods and services, though small businesses below a certain threshold (equivalent to approximately $45,000 annual turnover) can benefit from simplified rules or exemptions. Real estate taxation is assessed locally and is relatively modest compared to Western standards, often amounting to only a few hundred US dollars annually for average residential properties.  

• Special regimes and incentives – Georgia also provides tailored tax regimes for small businesses, individuals working in certain sectors (such as IT or international business services), and companies that set up in designated free industrial zones. These programs can reduce effective tax liability to exceptionally low levels, in some cases to rates that compete with classic offshore jurisdictions—without the reputational downsides.  

In the sections that follow, we will look more closely at each of these areas: how personal taxation is structured and applied, how the corporate profit tax system incentivizes reinvestment, and the structure and scope of other taxes such as VAT, property tax, and excise duties. This framework will provide a clear picture of both the advantages and the practical obligations that expatriates, investors, and businesses encounter when engaging with Georgia’s tax system.

Taxation of Individuals

In Georgia, the taxation of individuals follows a relatively straightforward model, characterized by a flat income tax system and a focus on territorial taxation principles. Whether one is considered a resident or a non-resident is a critical factor in determining tax liability.  

Resident vs. Non-Resident Taxation

An individual is generally regarded as a tax resident of Georgia if they spend more than 183 days in the country within any continuous 12-month period. Georgian tax residents are subject to personal income tax on their worldwide income. Non-residents, by contrast, are only taxed on income sourced within Georgia.  

For example, a Georgian resident employed by a company in Germany who continues to perform work remotely while living in Georgia would be liable to Georgian taxation on that foreign salary. A non-resident consultant who travels to Georgia for a short-term assignment, however, would only pay Georgian tax on the income connected to services rendered within the country.  

Flat Income Tax Rate

The core personal income tax rate in Georgia is a flat 20%, applied uniformly to most categories of income including employment wages, business income, and independent professional services. Capital gains and investment income are generally taxed at the same flat rate, unless qualifying for specific exemptions. Certain passive income streams, however, may be taxed differently—for instance, dividends and interest are usually subject to a 5% withholding tax. Rental income may also be taxed at reduced rates under simplified regimes (see below).  

Deductions and Allowances  

Georgia does not provide a wide array of personal deductions or allowances compared to many Western tax systems. Standard deductions such as personal allowances, family-related deductions, or itemized expense relief are minimal. That said, employer-funded pension contributions and certain mandatory social security contributions may reduce taxable income. The simplicity of the system is designed to reduce compliance burdens rather than encourage complex tax planning.  

Special Tax Regimes for Expats and Digital Nomads

Georgia has cultivated a reputation as an attractive jurisdiction for expatriates, freelancers, and location-independent professionals, primarily through its simplified entrepreneurial regimes and territorial tax principles. A notable option is the Individual Entrepreneur with Small Business Status regime. Under this framework, qualifying self-employed individuals with annual turnover up to GEL 500,000 can elect to pay tax at a 1% rate on turnover, significantly below the standard 20% on net income. This regime has made Georgia a popular hub for digital nomads, IT consultants, and online entrepreneurs who invoice foreign clients.  

Further, Georgia offers a “Virtual Zone” status to companies in the IT sector, which exempts certain revenues from Georgian taxation. Although this is corporate in nature, many expatriates operating through their own entities benefit from it in parallel with individual regimes.  

Example Applications

• A foreign software developer who relocates to Tbilisi and registers as an individual entrepreneur could pay just 1% on income from international clients, provided turnover remains under the threshold.  

• A non-resident author receiving royalties from a Georgian publisher would face Georgian withholding tax only on the Georgian-source income (commonly at 20%).  

• A local employee earning a monthly salary in Georgian lari pays a flat 20% income tax, with minimal deductions available.  

Overall, Georgia’s individual tax system is characterized by its flat rates, limited deductions, and favorable special regimes that are especially advantageous for expatriates and global freelancers. This simplified structure not only minimizes administrative burdens but also enhances Georgia’s attractiveness as a destination for digital nomads and professionals seeking international mobility. 

Taxation of Corporations

Georgia has gained a strong reputation in recent years for its business‑friendly tax framework, particularly for corporations. The country operates a system that is somewhat unique in the region, combining moderate rates with a distribution-based model that incentivizes reinvestment rather than immediate profit distribution.  

At the core of Georgia’s corporate taxation system is the Corporate Income Tax (CIT), often referred to as the "Estonian model." Under this regime, companies do not pay tax on retained and reinvested earnings; tax arises only when profits are distributed to shareholders (in the form of dividends, deemed distributions, or non-business expenses). The standard CIT rate is 15%. For example, if a company earns 1,000,000 Georgian Lari (approximately USD 370,000) and reinvests the full amount, no tax is due at that stage. However, if the company distributes 200,000 GEL (about USD 74,000) as dividends, a 15% tax applies to that amount.

Deductible expenses are usually not the central focus since the taxable event is the distribution rather than the earning phase. However, when calculating the distributable base, certain non-business expenditures, excessive fringe benefits, or undocumented payments can trigger taxation as though they were profit distributions. For example, personal use of corporate assets or transactions lacking proper documentation may attract the 15% tax. Traditional expense deductions (such as salaries, rent, or professional services) are generally recognized as legitimate business outlays, provided they are properly substantiated and tied to economic activity.

Georgia further enhances its attractiveness through a number of special regimes and incentives:  

• Free Industrial Zones (FIZs): Companies operating in these zones enjoy significant exemptions, including no corporate income tax on earnings from activities conducted within the FIZ, no VAT on transactions between FIZ companies, and no property tax. Only minimal license and utility fees usually apply. These zones are particularly appealing for manufacturing or logistics businesses targeting export markets.  

• International Company Status: Certain IT and maritime businesses can apply for “international company” benefits, which reduce the effective corporate income tax burden below the standard 15% (often closer to 5%). This regime is aimed at attracting service-oriented businesses with global clients and provides concessions on both profit distributions and employee income tax rates.  

• Small and Micro‑business Incentives (for smaller entities): While not strictly corporate taxation, Georgia maintains simplified regimes with reduced tax exposure for small traders and entrepreneurs below certain turnover thresholds (often under USD 200,000 annually).  

Overall, Georgia’s corporate tax system combines relatively low effective tax rates with administrative simplicity. The deferred taxation model encourages long-term investment and reinvestment in the country. Paired with special economic zones and sector-specific incentives, Georgia has positioned itself as one of the most favorable corporate tax environments in Eastern Europe and the Caucasus region.  

Other Significant Taxes

Beyond income taxation, Georgia operates a variety of other taxes that expatriates and investors should carefully consider. While the country is known for its relatively simple and competitive tax framework, the following levies can significantly affect transactions, investment strategies, and long-term planning.  

Capital Gains Tax

In Georgia, capital gains are generally treated as a form of ordinary income and taxed at the standard personal income tax rate of 20%. This applies to the sale of securities, real estate, and other assets, including cryptocurrencies. However, several exemptions make Georgia particularly attractive: for instance, individuals selling a residential property they have owned for at least two years can avoid tax on the capital gain. Similarly, certain small-scale securities transactions may escape taxation if not part of regular trading activity. On the corporate side, gains are only taxed when distributed (due to the Estonian-style system), incentivizing reinvestment.  

Dividend Taxation

Dividends distributed by Georgian companies to individual shareholders are subject to a 5% withholding tax. This flat rate makes Georgia significantly more favorable compared with many other jurisdictions. For example, a dividend of $10,000 would incur a $500 tax liability for an individual recipient. Foreign dividends received by residents are also taxed at 5%, although applicable tax treaty benefits may further reduce the effective rate.  

Value-Added Tax (VAT)

Georgia levies a Value-Added Tax at a flat rate of 18%. VAT is imposed on the supply of goods, services, and imports, but many exports are zero-rated. For example, if a company sells goods worth $50,000 domestically, the VAT charged would be $9,000. Businesses with annual turnover above approximately $57,000 (150,000 GEL) are obliged to register for VAT. This threshold allows many small businesses and freelancers, particularly those under Georgia’s favorable small business regimes, to avoid the administrative burden of VAT.  

Wealth and Property Taxes

Georgia does not impose a net wealth tax. However, an annual property tax applies to individuals and legal entities owning real estate. For individuals, the tax is progressive, calculated at up to 1% of the property’s market value, depending on income levels. For example, a Georgian resident earning above $14,000 annually and owning an apartment valued at $100,000 could face a yearly property tax of up to $1,000. For businesses, property tax is typically assessed at 1% of the average annual value of fixed assets.  

Inheritance and Gift Tax  

Georgia is unique among many jurisdictions because it does not levy inheritance or gift taxes. This makes intergenerational wealth transfer highly efficient, as beneficiaries and recipients do not face additional taxation upon receiving assets.  

Social Security Contributions  

The social security contribution—or “pension contribution”—system is relatively new, having been introduced in 2019. Both employees and employers make mandatory contributions of 2% each, while the government adds another 2%, capped at a certain income level. For domestic employees earning the equivalent of $1,000 per month, both the employee and employer would typically contribute $20 each, with the state adding another $20, leading to a total pension savings contribution of $60 monthly. Foreign nationals employed in Georgia are generally also subject to this scheme unless exempted by specific rules or international agreements.  

Taken together, these taxes reflect a system designed to encourage investment, streamline compliance, and remain attractive to both entrepreneurs and foreign investors. By understanding the nuances—such as dividend taxation, capital gains treatment, and exemptions—expatriates can optimize their financial position while taking full advantage of Georgia’s relatively light tax burden compared with many global centers.  

Who Benefits Most from Moving to Georgia?

Georgia’s tax system and residency rules create significant opportunities for certain groups of individuals, while others may find the environment less favorable depending on their needs and circumstances.  

Entrepreneurs and Small Business Owners

Georgia has earned a reputation as one of the most business-friendly countries in the region. Its streamlined registration procedures allow entrepreneurs to establish a company in just a few days, with minimal bureaucracy. The tax regime is particularly attractive: under the “small business status” program, qualifying entrepreneurs with annual turnover below a designated threshold can pay as little as 1% tax on revenue. Corporate profits are taxed only when distributed, meaning companies can reinvest untaxed profits to support growth. For business owners who value efficiency, low compliance costs, and a straightforward tax environment, Georgia offers substantial advantages.  

Digital Nomads and Remote Workers

Remote workers are another group that can benefit considerably. Georgia’s “Remotely from Georgia” program, introduced during the pandemic, highlighted the country’s openness to location-independent professionals. Even outside that specific initiative, digital nomads can take advantage of relatively low living costs, broad availability of co-working spaces, and favorable personal income tax arrangements. Those who qualify for individual entrepreneur small business status, for example, often face significantly lighter tax burdens compared to their home jurisdictions. Georgia’s policy of source-based taxation also means that non-residents are generally not taxed on foreign-sourced income, which can further reduce tax exposure depending on residency choices.  

Retirees and Individuals Seeking a Lower Cost of Living

While Georgia does not currently offer specific tax breaks tailored to retirees, many still find it attractive due to its affordable lifestyle, relatively low healthcare costs, and hospitable environment. Retirees with foreign pension income may find that Georgia does not tax such income if they are non-residents, though those establishing tax residence must carefully evaluate whether their pension income becomes taxable locally. For individuals on fixed retirement incomes, the country’s cost-effectiveness and growing expat community may outweigh the absence of targeted retirement tax incentives.  

For Whom Georgia May Be Less Suitable  

Despite these advantages, Georgia is not universally beneficial. High-earning professionals tied to traditional employment contracts may find that Georgia’s progressive income tax system, which generally applies a flat 20% rate on most income, does not provide significant benefits compared to more specialized regimes in jurisdictions such as Portugal or the UAE. Additionally, those who require extensive social services, advanced healthcare infrastructure, or comprehensive retirement benefits may face challenges, as Georgia’s systems in these areas are still developing. Individuals with complex international tax affairs also need to exercise caution: while Georgia’s rules are straightforward, coordination with home-country tax obligations and double taxation agreements is essential to avoid unintended liabilities.  

In short, Georgia is most appealing to entrepreneurs, small business operators, and digitally mobile professionals looking for a tax-efficient base in a business-friendly jurisdiction. Retirees seeking affordability and lifestyle may also find it rewarding, though without explicit tax relief on pensions. Conversely, those dependent on robust social infrastructure, or whose income structures do not align with Georgia’s preferential tax regimes, may find the country less suitable.  

Special Considerations for Relocation

Relocating to Georgia requires careful planning, both for legal compliance and for integrating smoothly into everyday life. While the country offers an attractive tax framework and relatively straightforward entry requirements, it is important for expatriates to understand the procedural steps involved in securing residency, accessing essential services, and moving personal assets.  

Residence Permits and Visas

Georgia is notable for its liberal visa regime. Citizens of more than 90 countries—including the European Union, the United States, Canada, and Australia—can enter visa-free and remain for up to one year. However, those intending to relocate longer term typically apply for a residence permit. The two most common routes are a work residence permit, based on local employment or business registration, and an investment residence permit, tied to minimum thresholds of business or real estate investments. An entrepreneur permit is also widely used by freelancers and small business owners. These permits are issued by the Public Service Hall in Georgia and are generally valid for one year, with the possibility of renewal. Applicants should ensure that passports are valid for at least six months beyond the intended stay and that application documentation—such as proof of income, housing lease, or company registration—is complete and properly translated.  

Healthcare System

While Georgia has made considerable progress in expanding healthcare access, the system still faces quality and capacity gaps, particularly outside Tbilisi and Batumi. Many expatriates rely on private healthcare providers, where services are generally more reliable, and consultations often available in English or Russian. It is strongly recommended that newcomers secure international health insurance covering both routine care and medical evacuation, as the local system may not meet international standards in every specialty area. Expats intending to stay long-term should also explore local insurance plans, which can be more affordable but offer narrower coverage.  

Banking and Financial Access

Opening a bank account in Georgia is relatively straightforward and typically requires only a valid passport, local address, and initial deposit. Some banks may request a residence permit, but many allow foreigners to open accounts with tourist status. Bank services are modern and digitized, with multi-currency accounts and online banking widely available. For those relocating for business purposes, opening a corporate account is a prerequisite for company registration. It is advisable to select a bank with strong foreign customer services and English-language support.  

Importing Personal Items

Moving household items into Georgia requires advance planning. Personal belongings for non-commercial purposes can usually be imported duty-free when tied to relocation, though customs formality still applies. New residents should compile a clear inventory of shipped items to facilitate customs clearance. Items classified as luxury goods, electronics, or motor vehicles may attract duties or special formalities. Importing vehicles, for instance, is subject to excise tax, which varies based on engine volume, age, and fuel type; for older cars, costs can be substantial. It is therefore prudent to assess whether shipping a vehicle is cost effective compared to buying locally.  

In sum, while Georgia offers a welcoming entry point for expatriates, smooth relocation depends on careful preparation. Ensuring proper residence status, arranging for comprehensive healthcare, setting up banking facilities early, and understanding customs rules for personal property are key to minimizing disruption and establishing a solid foundation for life in the country.  

The 'Boris Becker Trap': Avoiding a Sham Relocation

One of the most common pitfalls for individuals seeking tax benefits by moving abroad is the so‑called “Boris Becker trap,” named after the famous tennis player whose supposed relocation to Monaco in the 1990s was later deemed a façade by German authorities. The lesson is straightforward: merely renting an apartment or spending scattered days in Georgia is not enough to sever tax ties with a high-tax jurisdiction such as Germany, Austria, or Switzerland. Tax residency rules across these jurisdictions evaluate one’s center of vital interests—that is, where a person’s family, economic activity, personal connections, and habitual living arrangements are genuinely anchored.  

To avoid being classified as a tax resident in the home country despite having formal residence in Georgia, individuals must carefully build a substantive connection to the country. This often involves more than obtaining a residence permit or registering an address. Regulators examine factors such as whether your family lives in Georgia, whether your business activity or employment is genuinely conducted there, whether you own or rent property for actual use (not just in name), and where you maintain your closest social and economic relationships. A strong factual presence in Georgia—regular physical presence, integration into local life, and visible economic engagement—demonstrates authenticity.  

If tax authorities determine that the relocation is only nominal, they may disregard it and treat the taxpayer as if they had never left. The consequences can be severe: inclusion of worldwide income in the home country’s tax base, back taxes, interest, and potential penalties for tax evasion. For high-profile or high-net-worth individuals, reputational damage can be as costly as the financial liabilities.  

In practice, the safest course is to ensure that Georgia is not merely a “registered” residence but your actual home, meeting the tests of substance and intent. By establishing Georgia as the unquestionable center of vital interests, expatriates can legitimately benefit from Georgia’s favorable tax regime while safeguarding themselves against disputes with their former tax authorities. 

What Makes Georgia an Attractive Place to Live?

Perched at the crossroads of Europe and Asia, Georgia has become increasingly popular with expatriates and remote professionals not only for its favorable tax system, but also for the rich quality of life it offers. Beyond financial considerations, the country presents a compelling blend of cultural vibrancy, natural beauty, and modern conveniences that make it an attractive destination for long-term living.  

One of Georgia’s most notable draws is its culture and hospitality. Known for its centuries-old traditions, the country prides itself on a warm and welcoming social fabric. Locals are renowned for their friendliness towards foreigners, often going out of their way to help visitors and newcomers settle in. Georgian cuisine, with its unique combination of Mediterranean, Middle Eastern, and Central Asian influences, adds to the cultural experience. From the famous supra (traditional feast) to world-class wines—produced in one of the world’s oldest winemaking regions—social life in Georgia often centers around food, family, and community.  

Lifestyle in Georgia strikes a balance between modernity and tradition. In urban hubs such as Tbilisi and Batumi, residents have access to international restaurants, co-working spaces, and a growing arts and nightlife scene. At the same time, those who prefer a quieter pace can enjoy the more laid-back lifestyle of smaller towns or rural villages, where connections to nature and community remain strong.  

Georgia’s climate and nature further enhance its appeal. The country’s diverse geography includes subtropical Black Sea coastlines, fertile valleys, alpine mountains, and dramatic highland regions. This diversity translates into year-round outdoor opportunities, from skiing in Gudauri to hiking through the Caucasus Mountains or relaxing on the beaches of Adjara. The country experiences four distinct seasons, with warm summers and relatively mild winters, offering options that cater to a range of lifestyle preferences.  

Safety is another factor drawing people to Georgia. Crime rates are relatively low compared to many other countries, and the capital, Tbilisi, is often cited as a safe city for both residents and visitors. While normal precautions apply, foreigners generally find living in Georgia to be secure and hospitable.  

The country has also invested significantly in improving infrastructure, making daily life more convenient for residents. Internet connectivity is reliable and fast, an essential feature for the growing number of digital nomads. Public transport within cities is affordable, and international connections through Tbilisi and Kutaisi airports make travel straightforward. Healthcare facilities, especially in larger cities, continue to modernize, and private clinics often provide care at a fraction of the cost seen in Western countries.  

Taken together, Georgia offers a compelling mix of lifestyle benefits: a rich and welcoming culture, access to breathtaking landscapes, comfortable living standards, and a growing modern infrastructure. For individuals considering a new place to call home, these non-financial advantages contribute significantly to making Georgia an attractive long-term residence option.  

Cost of Living

Living expenses in Georgia are generally much lower than in most Western European countries, which is one of the reasons the country has become an attractive destination for digital nomads, entrepreneurs, and expatriates. Day-to-day costs for housing, food, and services are substantially more affordable, allowing individuals to maintain a comfortable lifestyle at a fraction of the price they might expect in cities such as Berlin, Paris, or Madrid.  

Housing:

Rent is one of the most favorable aspects of Georgia’s cost structure. In Tbilisi, the capital and most expensive city, a centrally located one-bedroom apartment typically ranges between $350 and $600 per month, depending on size and building quality. By contrast, in much of Western Europe, a similar apartment in a central location often costs between $1,200 and $2,000 per month. Outside the capital, prices in cities like Batumi or Kutaisi are even lower, sometimes dropping below $250 per month for a one-bedroom apartment in a central district. This wide gap means that long-term expatriates and professionals can allocate significantly less of their income toward housing.  

Food:

Everyday grocery shopping in Georgia is also inexpensive. A basket of fresh produce—tomatoes, cucumbers, potatoes, and local fruit—can be purchased for just a few dollars at neighborhood markets. For example, one kilogram of tomatoes may cost about $1–1.50, while the same quantity can be priced two to three times higher in many Western European countries. Dining out reflects a similar disparity: a meal at a mid-range restaurant in Tbilisi typically costs $8–12 per person, whereas in Western Europe you might expect to spend $20–30 for the equivalent. Even international cuisine and coffee culture, both of which have grown rapidly in Georgia, remain more affordable than their Western European counterparts.  

Services:

Service costs, such as domestic help, transportation, and personal care, are likewise modest. A taxi ride within central Tbilisi rarely exceeds $2–3, compared to $10–20 in Western Europe. Haircuts at local salons are typically around $8–10, while in many Western European cities the same service may cost $25–40. Mobile and internet subscriptions are also inexpensive: high-speed home internet often costs under $15 per month, whereas in much of Western Europe, prices average between $30 and $50.  

Overall, Georgia offers a markedly lower cost of living relative to Western Europe, without sacrificing access to modern conveniences. While imported goods may be comparatively more expensive, the affordability of housing, fresh food, and everyday services allows expatriates and locals alike to enjoy a comfortable standard of living at a reduced financial burden. This factor, when combined with Georgia’s favorable tax policies, makes the country a compelling choice for individuals looking to optimize both lifestyle and financial efficiency.  

Tax Aspects of Leaving Your Home Country (e.g., Germany, Switzerland, Austria)

When leaving a country such as Germany, Switzerland, or Austria in order to establish residence abroad—for instance in Georgia—it is important to anticipate not only the logistics of relocation but also the substantial tax implications that remain relevant even after departure. Each of these jurisdictions has developed exit taxation regimes and rules on limited tax liability that can have lasting effects on individuals with significant business or investment connections.

Exit Taxation for Business Owners and Shareholders

In particular, Germany imposes an “exit tax” on certain individuals who give up their unlimited tax liability status. This primarily affects business owners and significant shareholders in corporations, notably those holding at least 1% of shares in a German corporation at any point within the last five years. The rationale behind this tax is to prevent individuals from avoiding German capital gains taxation by moving their tax residence before selling their business interests. Upon departure, Germany may tax the unrealized capital gains on those shares as if the individual had sold them at the time of exit.  

Although there are exemptions and potential deferrals (for example, where the move is to another EU/EEA country under certain conditions), once residence is established outside that sphere—such as in Georgia—the deferral mechanisms are generally lost, and the tax becomes payable. Similar exit taxation principles exist in Austria, which also subjects shares owned by individuals to deemed taxation upon emigration, again with certain reliefs when moving within the EU/EEA. Switzerland historically has not imposed a broad-based exit tax on individuals, but migration can still trigger potential taxation if assets are connected with business operations or certain pension schemes.

Continued Limited Tax Liability After Departure

Leaving does not necessarily sever all tax obligations. In Germany, for example, once you are no longer considered a resident, you may still be subject to limited tax liability in respect of German-source income. This category includes income such as rental income from German real estate, dividends from German corporations, or certain types of pensions. Similar rules apply in Austria and Switzerland. The principle is that while worldwide income is no longer taxable, income arising from sources within the former home country remains subject to local taxation at the source.  

To manage double taxation risks, most of these countries rely on bilateral tax treaties with Georgia. However, the actual burden depends on the terms of each treaty, particularly regarding withholding taxes on dividends, royalties, and pensions. Effective planning often requires analyzing whether transferring real estate or liquidating investments before emigration may result in overall tax savings, or whether retaining them within the old jurisdiction is defensible in terms of long-term return.

Key Considerations Before Departure  

For individuals contemplating relocation from Germany, Austria, or Switzerland to Georgia, the critical steps include:  

• Assessing potential exit taxation on substantial business or shareholdings.  

• Clarifying whether EU/EEA relief possibilities are available and what is lost when moving outside of that area.  

• Reviewing which categories of income will remain taxable under limited tax liability.  

• Understanding the scope of the applicable double tax treaty between the home country and Georgia.  

By carefully navigating these aspects, prospective expatriates can avoid unexpected tax liabilities and structure their move in a way that supports both compliance and long-term financial efficiency.  

Correct Preparation for the Move

Relocating to Georgia offers significant lifestyle and tax advantages, but thorough preparation is essential in order to avoid administrative hurdles and ensure compliance both in Georgia and your country of departure. Below is a structured checklist to guide you through the key steps of preparing for your move:  

1. Clarify Immigration and Visa Requirements

• Visa-free entry or e-visa options: Citizens of many countries can enter Georgia visa-free for up to one year, one of the most generous entry regimes in the region. Verify whether your nationality benefits from this arrangement or requires an e-visa in advance.  

• Residency permits: If you plan to stay long term—or intend to qualify as a Georgian tax resident—it is advisable to research residence permit categories (work, study, property ownership, or indefinite permits) and prepare the required documentation.  

• Work permissions: Depending on the nature of your professional activities, ensure that you comply with local labor and immigration laws.  

2. Review Tax Residency Rules

• In Georgia, you typically become a tax resident if you spend at least 183 days in the country within a 12-month period.  

• If you plan to make use of special regimes (such as the Individual Entrepreneur status or "Small Business" tax treatment), confirm eligibility criteria before arrival.  

3. Handle De-registration Obligations in Your Home Country

• Formal de-registration: Some countries require you to deregister your place of residence with the municipal or national authorities. This may also help avoid ongoing tax and social security liabilities in your country of origin.  

• Exit tax considerations: High-tax jurisdictions such as certain EU member states may impose an "exit tax" on unrealized capital gains when becoming a tax resident elsewhere. Review whether this applies in your case before departure.  

• Notification to tax authorities: In many cases, notifying your tax office of your residence change ensures that you are not incorrectly taxed on worldwide income after departure.  

4. Organize Financial and Banking Matters

• Foreign bank reporting: Close or notify foreign banks if you no longer qualify as a local resident, since many are bound by “Know Your Customer” (KYC) regulations.  

• Access to funds in Georgia: Consider whether you will open a Georgian bank account upon arrival; ensure necessary identification documents (passport, proof of address, etc.) are ready.  

5. Prepare Documentation for Georgia

• Proof of income or employment contracts: These may be necessary both for residence permit applications and for access to certain tax incentives.  

• Health insurance coverage: While Georgia does not strictly require private health insurance for foreigners, securing coverage before the move can ensure peace of mind.  

• Translations and apostilles: Important certificates (birth, marriage, degrees) may need to be translated into Georgian and apostilled/legalized for official use.  

6. Plan Logistical and Practical Aspects  

• Housing arrangements: Decide whether you will rent or purchase property for residency purposes. Some residence permits are linked to real estate ownership.  

• Registration with local authorities: While not strictly required for short stays, address registration can be necessary for certain residence permits and business registrations.  

• Continuity of social benefits or pensions: If you receive a pension or benefits abroad, verify how these will be paid once you move to Georgia and whether treaties protect your rights.  

By following this checklist, you will not only streamline your transition into Georgia but also significantly reduce the risk of compliance issues—particularly with tax and residency matters. A carefully planned move ensures that once you arrive, you can take full advantage of the country’s attractive tax regime and vibrant expatriate life.  

Automatic Information Exchange (CRS)

Georgia does not currently participate in the OECD’s Common Reporting Standard (CRS) for the Automatic Exchange of Information. This means that Georgian financial institutions are not required to collect and automatically transmit account information of non-resident clients to foreign tax authorities, nor does Georgia receive such information from other jurisdictions.  

For individuals considering holding bank accounts in Georgia, this can have significant implications. On the one hand, the absence of CRS reporting makes Georgia a more discreet banking jurisdiction compared to countries that are fully integrated into the exchange system, since local banks are not obliged to share account details automatically with an account holder’s country of tax residence. This feature has historically attracted expatriates, investors, and businesses seeking a higher level of financial privacy.  

On the other hand, it is important to note that Georgia’s non-participation in CRS does not exempt account holders from their legal obligation to declare and report foreign bank accounts and income in their home jurisdictions. Many countries have strict self-reporting rules, and failure to disclose offshore accounts can lead to significant penalties, irrespective of whether the jurisdiction itself shares information automatically.  

Furthermore, Georgia’s position could evolve. As international pressure for transparency grows, more jurisdictions are joining CRS or implementing similar bilateral exchange agreements. Therefore, individuals relying solely on Georgia’s current non-reporting status should remain mindful of potential regulatory changes and ensure that their cross-border tax compliance remains robust.  

In short, the lack of CRS participation currently provides foreign account holders in Georgia with a degree of privacy, but this should not be viewed as a substitute for fulfilling tax compliance obligations in their country of residence.