We've collected the answers to the frequently asked questions about finances and taxes in Georgia:
If your company isn't a VAT payer and isn't currently operating, you don't need to file an annual report. You can just toggle the inactive status in your taxpayer account. If the company is paying VAT, then on top of the inactive status, you'll need to provide a zero report on the value-added tax.
Several factors affect the cost of accounting services. The main ones are the number of counterparties, the number of staff employees, the volume of the initial documentation, and the specifics of the business itself.
For all issues related to accounting, the client contacts their personal Jara Accounting manager. Accounting and tax reporting is managed by a team of experienced accountants in a special application.
Jara Accounting is insured for 200,000 GEL. If accounting errors are discovered as a result of a tax audit, the client doesn't have to pay any imposed fines. They are the responsibility of Jara Accounting. The insurance amount completely covers the amount of fine.
Yes, Georgia isn't planning on signing the CRS Tax Information Exchange Agreement.
There are 8 types of mandatory tax payments: value-added tax - 18%, profit tax - 15%; dividend tax - 5%, personal income (salary) tax - 20%, import tax - 0%, 5%, or 12%, tax at source - 10-15%, property tax - up to 1%, excise tax - varies.
Preferences for small businesses, for IT companies with the Virtual Zone status, international companies, and Free Industrial Zones after purchasing a license.
To become a tax resident, you must stay in Georgia for 183 days of one tax year. After that, the residency is applied automatically and revised every year. Exceptions: persons on a diplomatic mission, employed by international organizations, undergoing medical treatment or rest, or moving from one country to another. If you disagree with the assigned status, you must contact the Revenue Service and justify the reasons for your disagreement (for example, provide documents from your place of work in an international company). If at least one day out of 183 days has passed to another year, the residency is valid until the end of the year. If a person hasn't left the territory of Georgia after 183 days before the end of the year, the residency is assigned for the entire next year. The best way to minimize your taxes is to take advantage of Georgia's tax preferences as soon as possible and register as an individual entrepreneur, instead of waiting for the standard 20% personal tax to be imposed. The best time to do this is before arriving to Georgia or immediately afterward.
We've collected the answers to the frequently asked questions about the legal support of business in Georgia:
Yes. The law "On Entrepreneurs" states that non-residents of Georgia have equal rights to residents when opening and running a business.
Limited liability company, individual entrepreneur, joint-stock company, limited partnership, cooperative, affiliate branch, joint liability company.
No, all procedures can be completed remotely by proxy, as long as you send the entire package of notarized documents by a courier service in advance.
From 3 working days since the documents are submitted.
Georgia has free trade agreements with the following countries: all EU and CIS countries, Turkey, China, Hong Kong, USA, Canada, Japan.
Yes, it's mandatory.
Georgia doesn't have any requirements for authorized capital.
LLC registration might be refused if: an incomplete set of documents was submitted for registration; the documents contain errors, inaccuracies, or contradictions or go against the norms; violations were committed when paying the state duty; the details were incorrect or the receipt was paid by an unidentified person; there were problems when checking the legal address; other reasons for refusal provided by the legislation of Georgia.
From 2 working days since the documents are submitted. For remote registration, the time depends on the speed of processing and sending the required documentation.
Any legally competent citizen of any country who has reached the age of majority can be registered as an individual entrepreneur, except for state and municipal employees, employees of security agencies and prosecutor's office, lawyers and judges, or military personnel.
Yes, but it's better to open a bank account in a Georgian bank.
Support of real estate transactions
Yes, foreign citizens can buy real estate in Georgia. The restriction applies only to agricultural land.
You can check the ownership rights in Georgia on the real estate registry portal. To do that, you'll need the property's cadastral data. You'll also require a document describing the legal status of the property to determine the presence of restrictions on the day of application.
The purchase of real estate is recorded in the state registry based on the sale and purchase agreement. In specific cases, a notary may be required. Before signing the main sale and purchase agreement, the parties can sign a preliminary sale and purchase agreement that indicates the commitment to sign the main agreement in the future.
Yes, it's possible if your business has an annual turnover of 50,000 GEL.
If you're a citizen of one of the 95 countries that can travel to Georgia without a visa, you can spend up to 1 full year in Georgia, including work in Georgia, without any additional permits. However, many people still want to get a residence permit to protect themselves from possible future changes in legislation and get additional protection while traveling (technically, it's the border guard's decision to allow you into the country if you don't have a residency) or confirm resident status for tax reasons. If you spend at least 183 days in Georgia during 1 tax year, you'll automatically become a tax resident. As a rule, it's better to sort out your tax obligations and options even before you arrive in order to minimize taxes.
Most people usually apply for a work permit. To do this, you'll need a workplace. Please note that it's not as simple as registering a company, hiring yourself, and going straight to the House of Justice to get your permit. You'll have to prove the legitimacy of your workplace, meaning that you'll need to work there for at least 6 months and, if it's your own business, have an annual turnover of at least 50,000 GEL. However, to speed up the process, you can always go back to the option of receiving an investment permit, which requires buying Georgian real estate worth at least 300,000 GEL (about $87,000). This amount will buy you a decent apartment in a nice place, which you can then rent out. By buying a property, you and the members of your family will automatically receive the right to a residence permit. Other options, such as studying and reuniting a family, are also available.
Book a free consultation
Learn more about our financial, legal, and business registration services from a Jara Accounting employee. Fill the form to apply.
Go to blog
Financial and tax reportingAccounting Programs in Georgia
Financial and tax reportingAdvantages of accounting outsourcing over an in-house accountant: an overview of the advantages of remote accounting
Legal supportBanking services for legal entities in Georgia
Legal supportBanks in Georgia
TaxCountries with the lowest corporate taxes in 2021
Legal supportCryptocurrency Regulation in Georgia in 2023
TaxDouble Taxation Agreements with Georgia
Financial and tax reportingFilling out the Sakstat questionnaire for non-resident entrepreneurs in Georgia
Financial and tax reportingFinancial and tax reporting in Georgia
TaxFines in the Tax Sphere in Georgia
Business registrationFree industrial zones in Georgia
Business registrationGeorgia for business in 2021