Georgia became famous among freelancers for its 1% tax on turnover for small individual entrepreneurs. That regime still exists, but since March 2026 individual entrepreneurs also need a work permit. This page explains the position as of October 2026. It is a general guide, not tax advice.
Georgian Tax Residency#
You are a Georgian tax resident if you spend 183 days or more in Georgia in any 12-month period ending in a tax year. Residents are taxed on Georgian-source income; Georgia does not tax foreign-source income of individuals, so remote workers paid from abroad generally owe no Georgian income tax on that income, unless they bring the activity into Georgia through a Georgian business.
The 1% Small Business Regime#
Foreigners can register as an individual entrepreneur (IE) and apply for small business status, which taxes turnover at 1% up to GEL 500,000 a year (3% above that). It has been popular with freelancers who invoice foreign clients. Since March 2026, registering and operating as an IE also requires a work permit, so check the current rules before setting one up.
The standard flat rate of personal income tax is 20%.
What It Costs by Base#
These are ballpark monthly costs for one person in a furnished apartment, eating out often, with a coworking desk and a social life.
| Base | Lean | Comfortable | Premium |
|---|---|---|---|
| Tbilisi | $1,000 | $1,600 | $2,500 |
| Batumi | $900 | $1,300 | $2,000 |
| Kutaisi, mountain villages | $700 | $900 to $1,300 | $1,800+ |
Rough prices: khachapuri GEL 12 to 25, a plate of khinkali GEL 10 to 20, a glass of Georgian wine GEL 8 to 15, a coffee GEL 6 to 10, a coworking day pass GEL 20 to 40, and a Bolt ride across Tbilisi GEL 6 to 15.
Paying for Things#
Cards and contactless payments are accepted almost everywhere in cities, including for small amounts. Marshrutkas, markets and village guesthouses may want cash in lari.
Opening a Georgian Bank Account#
Georgian banks, especially Bank of Georgia and TBC Bank, are famous for opening accounts for foreigners quickly, often the same day with just a passport. Multi-currency accounts in lari, dollars and euros are common. Banks have tightened checks in recent years for some nationalities and may ask about the source of funds.
Taxes and Money FAQs#
Do digital nomads pay tax in Georgia?
Georgia doesn’t tax foreign-source income of individuals, so remote workers paid from abroad generally owe no Georgian income tax on it.
Does the Georgian 1% tax still exist?
Yes, for individual entrepreneurs with small business status, up to GEL 500,000 a year in turnover. Since March 2026, IEs also need a work permit.
Can foreigners open a bank account in Georgia?
Yes. Bank of Georgia and TBC often open accounts for foreigners with just a passport.
Is Georgia cheap for digital nomads?
Yes. A comfortable month costs about $1,300 to $1,600 in the main bases.