Georgia's 1% small business status: what you need to know
Georgia draws attention for one number: 1 % of turnover under small business status. The rate is real, but it comes with precise conditions — and on its own it says nothing about your personal tax.
Published on 3 November 2026 · Jason Pivron, director
What the status says
According to our Georgia profile, small business status allows taxation at 1 % of turnover, up to GEL 500,000. A company falls under a different regime: 15 %, or 0 % as long as profits are reinvested. Two separate regimes, then, to be chosen with care.
These rates were recorded on 21 September 2026 and their source checked on 30 September 2026; they remain to be checked with the Georgian tax authority for your case. Nothing here is tax advice.
The conditions people forget
The status requires registration on site. And the 1 % rate only really concerns you if you are tax resident in Georgia: our profile points to the 183-day rule. Someone who keeps their home, family and economic interests in their home country generally remains taxed there.
A declared legal address is mandatory, with a notarised lease or landlord verification at the House of Justice: this is included in our service, and it also underpins the residence permit application.
Residence, the real issue
A company abroad does not move your home, your 183 days or your centre of vital interests. Tax residence is what changes your position, and in Georgia it goes through the sole trader route or through real estate investment.
Our published price for residence in Georgia is €2,790; the residence and tax residence service starts at €2,490 depending on the country. The Georgia 1 % + residence package brings the steps together in one file.
What setting up in Georgia costs
Published prices, government fees included, excluding capital and travel. No minimum capital is required and the recorded incorporation time is 1 to 2 weeks. Details are on the Georgia profile.
- Company formation: €2,890 one-off
- Registered office: €999, then €999 per year
- Bank account opening: €3,990 one-off
- Accounting, filings and audit: €2,330, then €2,330 per year
- Compliance, KYC and beneficial owners: €999, then €999 per year
Banking: check it against your sector
Our assessment of banking access in Georgia: adequate, with fast local opening. SEPA transfers, however, have to be checked against your sector: a point to settle before choosing Georgia if your customers pay in euros.
It is one of the cheapest set-ups in the catalogue, both to enter and to maintain. It is also a structure that only holds if the residence is real.
Where to start
The right order: check whether you can genuinely become Georgian tax resident, choose between small business status and a company, and only then incorporate. A free 20-minute call is enough to frame these three points, with a firm quote before signature: book a call.
To compare with other countries, see our jurisdictions and the corporate tax simulator.
Frequently asked questions
How do you pay 1% tax in Georgia?
Under small business status, the tax is 1 % of turnover, up to GEL 500,000, with registration on site. It only reduces your tax if you are genuinely tax resident in Georgia.
Does a Georgian company also pay 1%?
No: according to our profile, a company falls under a regime of 15 %, or 0 % as long as profits are reinvested.
Do you have to live in Georgia to use the status?
Tax residence generally requires 183 days and a real centre of interests; a company alone does not move your residence.
How much does it cost to set up a company in Georgia?
Our published price is €2,890, government fees included; no minimum capital is required.