Unlock Georgia’s 1% Tax: Why Digital Nomads are Flocking to Tbilisi

Georgia’s 1% flat tax for small businesses has been an open secret in digital nomad circles for years. But in 2026, with remote work now fully normalised and several European countries tightening their own tax regimes, the flow of location-independent workers arriving in Tbilisi has turned into something closer to a flood. The practical question most people are asking — before they buy the plane ticket — is not whether the tax deal is real, but exactly how to access it, what it costs to set up, and what the genuine day-to-day financial picture looks like. This article answers all of that.

What the 1% Tax Regime Actually Is (and Who Qualifies)

Georgia operates a Small Business Status (also called the Individual Entrepreneur regime) that allows qualifying sole traders to pay 1% income tax on gross revenue, up to an annual turnover ceiling of 500,000 GEL (roughly 180,000 USD at 2026 exchange rates). There is no VAT obligation below the 100,000 GEL threshold, and there are no mandatory social contributions for individual entrepreneurs in the Georgian system.

This is not a loophole. It is a codified Georgian tax category — Article 88 of the Tax Code of Georgia — designed to attract foreign investment and entrepreneurial activity. The rate has remained stable since 2017 and survived multiple parliamentary sessions since then.

Who qualifies:

• Any individual (Georgian citizen or foreign national) who registers as an Individual Entrepreneur (IE) in Georgia
• Your business activity must fall within approved categories — most service-based freelance work (software development, design, marketing, writing, consulting) qualifies
• Annual gross revenue must not exceed 500,000 GEL
• You must not have employees on payroll (or manage payroll separately under a different structure)
• Your clients must generally be outside Georgia — if you earn most income from Georgian-resident clients, you may face a different classification

Who does not qualify:

• Traders in goods (the 1% applies to service income; goods traders face a different 3% rate under small business status)
• Anyone whose activity is classified as a “high-profit” profession under Georgian Revenue Service guidance — check this before registering if you are in finance, law, or medicine
• Companies structured as LLCs — the 1% is strictly for individual entrepreneurs

You pay 1% on every invoice you issue, regardless of expenses. There are no deductions for business costs under this regime. That simplicity is the point.

The Step-by-Step Registration Process in 2026

Registration has become significantly smoother since 2023. The Georgian Revenue Service has digitalised most of the process, and many nomads complete registration within two to three working days of arriving in Tbilisi.

1. Get your Georgian ID number. As a foreign national, you receive a Personal Number when you enter Georgia — it is printed on your entry stamp or e-visa documentation. You need this before any government registration.
2. Register as an Individual Entrepreneur at the House of Justice. There are multiple branches across Tbilisi and in all major cities. Bring your passport. The registration fee is 2 GEL. You will receive your IE registration certificate the same day or the next day.
3. Register with the Georgian Revenue Service (GRS). Go to rs.ge and create an account using your IE registration number. Apply for Small Business Status through the portal. This is where you formally elect the 1% tax rate. Processing takes one to three working days in 2026.
4. Set up your Georgian bank account. Most banks now require proof of IE registration before opening a business account for non-residents. TBC Bank and Bank of Georgia both have English-language services for this process.
5. File monthly declarations. Tax under the small business regime is declared and paid monthly via the GRS online portal. You report gross income and pay 1% of that figure. The declaration deadline is the 15th of the following month.

Visa-Free Living: How Long You Can Actually Stay

Citizens of most Western countries, including EU member states, the United States, the United Kingdom, Canada, and Australia, can enter Georgia visa-free and remain for 365 days per calendar year. This is not a 365-day visa — it resets every calendar year, not on a rolling 12-month basis. Leaving and re-entering does not restart your clock; it simply pauses it.

In practice, this means you can live and work in Georgia for up to a full year, leave, return the next calendar year, and repeat the cycle indefinitely. Many long-term nomads in Tbilisi have been doing exactly this since 2021.

One important nuance: being in Georgia does not automatically make Georgia your tax residence. Georgian tax residency is established at 183 days of physical presence within a calendar year. Once you cross that threshold, you are a Georgian tax resident — which is actually what you want if you are registering as an IE to use the 1% regime. Without tax residency, the revenue service may question your ability to claim small business status on foreign-sourced income.

Your home country’s rules on tax residency and foreign income are a separate matter entirely, and you need to verify your obligations there before assuming Georgia’s 1% rate covers your entire global tax picture. This is the part that requires a qualified international tax adviser, not a Telegram group recommendation.

The Remotely from Georgia Programme in 2026

The Remotely from Georgia programme, launched in 2020, was Georgia’s formal invitation to remote workers from countries with reciprocal visa-free access. In 2026, the programme itself has been folded into a broader digital nomad framework administered by Enterprise Georgia, but the core offer remains the same: apply online, get a letter of support, use it to smooth banking and accommodation contracts.

Key points about the current programme:

• Applicants must demonstrate remote employment or freelance income from a non-Georgian source
• Minimum monthly income requirement in 2026: 2,000 USD (demonstrable through bank statements, contracts, or invoices from the prior three months)
• The programme approval letter is not a visa — it works alongside your existing visa-free entry right
• Approved applicants gain access to a fast-track track for opening bank accounts at partner institutions
• The programme has no fee as of 2026

Practically, the Remotely from Georgia letter has become less essential than it was in 2021–2022, when Georgian banks were more cautious about opening accounts for foreign nationals without local employment proof. In 2026, TBC Bank and Bank of Georgia both have dedicated non-resident onboarding processes for registered individual entrepreneurs that do not require the programme letter. It remains useful, but it is no longer the only entry point.

2026 Budget Reality: What It Costs to Live and Work Here

The cost of living in Tbilisi has risen noticeably since 2022, when the first large wave of relocators arrived. That said, Georgia still represents strong value relative to Western European or North American cities.

Monthly Apartment Rental Costs (Tbilisi, 2026)

• Budget: A furnished studio in Gldani or Didi Dighomi — 900–1,200 GEL/month
• Mid-range: A one-bedroom furnished flat in Vake, Saburtalo, or Vera — 1,800–2,800 GEL/month
• Comfortable: A two-bedroom renovated apartment in Mtatsminda or central Tbilisi — 3,500–5,500 GEL/month

Monthly Apartment Rental Costs (Outside Tbilisi, 2026)

• Kutaisi: One-bedroom furnished flat — 700–1,200 GEL/month. Infrastructure is improving; the city now has more reliable fibre internet coverage following a 2025 municipal expansion project.
• Batumi: One-bedroom near the centre — 1,400–2,200 GEL/month in non-summer months. Summer rates spike to 3,000–4,500 GEL/month for short-term lets.

Overall Monthly Budget Estimates

• Budget (Tbilisi): 2,500–3,500 GEL/month including rent, food, transport, utilities, and basic leisure
• Mid-range (Tbilisi): 4,500–6,500 GEL/month — comfortable living with restaurant meals, occasional travel within Georgia, and reasonable entertainment
• Comfortable (Tbilisi): 7,000–10,000+ GEL/month — larger apartment, regular dining out, private gym, international flights home quarterly

Utilities (electricity, water, gas, internet) for a one-bedroom apartment run roughly 200–400 GEL/month in winter and 100–200 GEL/month in summer, depending on heating usage. Fibre internet speeds of 100–200 Mbps are standard in Tbilisi and cost 30–60 GEL/month.

Health Insurance: The Requirement Nobody Talks About

Georgia has no universal public healthcare system for foreign nationals. If you need medical attention, you pay out of pocket — or you have insurance. This is not a bureaucratic technicality. It matters the first time you need to see a specialist or end up in a hospital.

There is no legal requirement for tourists staying under the visa-free arrangement to hold insurance, but if you are registered as a Georgian Individual Entrepreneur and spending 183+ days in country, you are effectively a resident — and the cost of uninsured medical care in a private Georgian clinic is significant.

Typical health insurance costs in Georgia (2026):

• Local Georgian insurer (e.g. Aldagi, Imedi L): 80–180 GEL/month for a basic outpatient and hospitalisation plan for a healthy adult aged 25–45
• Mid-tier local plan with dental: 200–350 GEL/month
• International coverage (e.g. SafetyWing, Cigna Global): 120–300 USD/month depending on age and coverage level — useful if you travel between countries frequently

Local Georgian insurers are generally cheaper and sufficient for day-to-day care within Georgia. If you travel frequently or want coverage that follows you internationally, an international plan makes more sense despite the higher premium.

Banking and Getting Paid as a Foreign Freelancer

This is the practical bottleneck that catches most people off guard. You have registered as an IE, you have small business status, and your first client invoice is due — but you need a Georgian business account to receive payments in a way that the Revenue Service can verify.

Your main options in 2026:

Georgian Bank Accounts

TBC Bank and Bank of Georgia are the two dominant institutions. Both have English-language mobile apps and allow individual entrepreneurs to open business current accounts with a valid passport and IE registration certificate. TBC’s Space app remains popular with the nomad community for its clean interface and instant GEL/USD/EUR conversion. Account opening typically takes three to five working days.

Receiving International Payments

Most Georgian IE accounts accept SWIFT transfers in USD and EUR, which convert automatically to GEL. Wise (formerly TransferWise) is widely used to receive client payments and then send to a Georgian account, reducing conversion fees. Stripe is available in Georgia as of 2025, which resolved a significant pain point for freelancers invoicing international clients who prefer card payments.

Declaring Income Correctly

Under the 1% regime, you declare the GEL equivalent of every payment received, using the National Bank of Georgia’s official daily exchange rate on the date the payment was received. Keep records of every transaction. The GRS does conduct audits, and mismatched income declarations are the most common trigger.

What Has Changed Since 2024

Several practical shifts have occurred that anyone reading older forum posts or 2022-era nomad guides will not be aware of.

• Stripe availability: Stripe officially launched in Georgia in late 2025, allowing Georgian-registered businesses to accept card payments from international clients without routing through third-party processors. This changed the invoicing workflow significantly for freelancers.
• GRS English portal: The Revenue Service completed the English-language rollout of its online declaration system in 2025. Monthly tax filing no longer requires Georgian-language navigation.
• Rental market tightening: Tbilisi rental prices stabilised in 2025 after the sharp rises of 2022–2023, but they have not returned to pre-2022 levels. Budget nomads are increasingly looking at Kutaisi and Batumi as alternatives.
• New direct flight routes: Kutaisi International Airport added direct connections to several new European cities in 2025–2026, including routes operated by Wizz Air to Vienna and Rome, making Georgia more accessible for shorter initial trial stays before committing to a longer relocation.
• Banking for non-residents: Both TBC and Bank of Georgia tightened compliance requirements in 2024 following EU anti-money-laundering pressure, requiring more thorough documentation of income sources. This is manageable but adds a step — prepare three to six months of bank statements from your home country bank before arriving.
• Tax treaty awareness: Georgia has signed double taxation agreements with over 50 countries. The list expanded in 2025. Whether a treaty applies to your situation depends on your nationality and tax residency — check the current GRS treaty list at rs.ge before assuming your home country’s obligations are automatically resolved.

Frequently Asked Questions

Does the 1% Georgian tax replace my home country tax obligations?

Not automatically. Georgia’s 1% small business tax covers your Georgian tax liability. Whether your home country still considers you a tax resident — and therefore taxes your foreign income — depends on that country’s residency rules. Many countries require you to formally deregister as a tax resident before they stop taxing your global income. Get local tax advice before assuming the 1% is your only obligation.

How long does it take to set up as an Individual Entrepreneur in Georgia?

Most people complete the full process — House of Justice registration, Revenue Service small business status application, and bank account opening — within one to two weeks of arriving in Georgia. The House of Justice registration itself is usually same-day or next-day. Bank account opening is typically the slowest step, taking three to five working days.

Can I use the 1% regime if I work remotely for a single employer rather than multiple clients?

Georgian tax authorities may reclassify a single-client service arrangement as employment rather than freelance work, particularly if the relationship resembles a standard employer-employee structure. This is a grey area in 2026. If all your income comes from one foreign company, consult a Georgian tax adviser before registering — a different structure may be more appropriate and more defensible.

Is Georgia’s 1% tax legitimate and sustainable long-term?

The 1% small business regime is codified in Georgian law and has been stable since 2017. Georgia has a strong institutional interest in attracting foreign income earners and entrepreneurs. That said, no tax policy is guaranteed indefinitely. The 500,000 GEL ceiling was last reviewed in 2021 and has not changed since. Monitoring Georgian Revenue Service updates via rs.ge is the only reliable way to stay current.

What happens if I earn more than 500,000 GEL in a year?

If your annual gross revenue exceeds 500,000 GEL, you lose small business status for that tax year. Income above the threshold is taxed at standard individual income tax rates (20% in Georgia as of 2026), and you become subject to VAT registration requirements. Exceeding the threshold is a genuine problem to plan for — if you are approaching it, consult a Georgian accountant in advance rather than after the fact.

📷 Featured image by Barbara Maier on Unsplash.