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Virtual zone in Georgia

Companies with Georgian virtual zone status are taxed under a preferential system, which allows online businesses to develop faster and more efficiently. Under the law on preferential taxation for an IT company in Georgia, since 2011, it has become possible to develop software, support sites, develop mobile applications, and conduct other activities within this industry.

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Registration of an IT company in Tbilisi or another city in Georgia is a simple and quick process. And the benefits provided by the state make the country attractive for entrepreneurs from all over the world. In fact, after receiving Georgian virtual zone status, your company will be completely exempt from VAT and income tax.

A resident of the virtual zone pays only:

  • 5% tax on withdrawn dividends 
  • income tax in case of payment of salaries

This tax regime is very convenient for those developers of IT products who cooperate with various international clients and customers who are located in different parts of the world. At the same time, the registration of an IT company in Georgia is in demand because there is no need to obtain permits and a license to operate.

In 2021 Tax Administration of Georgia has made adjustments to the interpretation of the Article on activities in the Virtual zone and among the mandatory requirements for compliance with the status of the Virtual Zone ‒ the subsistence (presence) on the territory of the country namely: administrative expenses, for example, renting an office in which employees of the company work, or the presence of specialists from among the citizens of Georgia on the staff.

Procedure for registration and obtaining status

Registration of LLC in the House of Justice
Gaining access to the tax office of a registered company
Submission of an application to the Ministry of Finance of the Republic of Georgia for assignment of the status of a virtual zone resident
Obtaining a virtual zone resident certificate and submitting it to the tax office
In the process of registering the IT status of your business, Jara Accounting specialists also open a multi-currency current account of the company in a bank convenient for you
Procedure for registration and obtaining status
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Learn more about our financial, legal, and business registration services from a Jara Accounting employee. Fill the form to apply.


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