Setting Up a Business in Georgia as a Remote Freelancer: A How-To

Why Georgia’s Legal Setup Actually Makes Sense for Freelancers

By 2026, the number of remote workers choosing Georgia as a base has grown sharply enough that Tbilisi‘s House of Justice has dedicated queues for foreign individual entrepreneur registrations. That tells you something. The country has quietly built one of the most accessible legal environments for freelancers in the world — not because of aggressive marketing, but because the mechanics genuinely work. A flat 1% tax on turnover, a business registration that can be completed in under an hour, and a visa-free stay of up to one year for citizens of dozens of countries. The question most people arrive with is not whether to set up here, but how — and where the traps are.

This guide is for people who are seriously considering working from Georgia for one to six months or longer, not people on a two-week holiday. If you are already earning remotely and want a legitimate, low-cost legal structure that keeps you compliant back home and in Georgia, this is where to start.

Choosing Your Legal Structure: IE vs. LLC vs. Virtual Zone

Georgia offers three realistic structures for a foreign freelancer. Each suits a different situation.

Individual Entrepreneur (IE) — also called Sole Trader

This is the most common choice for solo remote workers — designers, developers, writers, consultants, and anyone billing clients directly under their own name. As an IE, you are the business. There is no separation between personal and business liability, but for most freelancers this is not a meaningful risk. Registration is free or nearly free, the annual compliance burden is low, and if your annual turnover stays under 500,000 GEL, you qualify for the small business tax regime at 1% of gross revenue. Above that threshold, the rate rises to 3%.

Limited Liability Company (LLC) — Shpd in Georgian

An LLC creates a separate legal entity. You would choose this if you are building something with co-founders, need to issue invoices from a company name, or plan to bring on employees in Georgia. The compliance requirements are higher: quarterly VAT filings if turnover exceeds 100,000 GEL annually, mandatory accounting, and a more involved registration process. For a solo freelancer billing foreign clients, an LLC is usually unnecessary overhead in 2026.

Virtual Zone Person

This is a specific Georgian designation for IT companies. If 100% of your revenue comes from providing IT services to clients outside Georgia, a Virtual Zone entity pays 0% corporate income tax and 0% dividend tax. It is genuinely attractive — but it applies only to IT services, and the definition is interpreted strictly. Graphic design, copywriting, and consulting do not qualify. Software development, SaaS products, and technical IT services generally do. Setup costs more than an IE, and you need a registered address and proper accounting from day one. Worth it for the right profile; irrelevant for everyone else.

Step-by-Step: Registering as an Individual Entrepreneur in 2026

The registration process has been streamlined since 2024. Here is what actually happens.

1. Gather your documents. You need your passport, a Georgian address (a rental contract or utility bill works), and a Georgian phone number. The phone number is used for the Revenue Service portal.
2. Visit the House of Justice (Saakartveloshi Samartle Sakme). There are branches in Tbilisi, Kutaisi, Batumi, and several other cities. Walk-in appointments are available, but booking online through justice.gov.ge saves time. In Tbilisi in 2026, walk-in waits for the foreign registration queue average around 40–90 minutes on weekday mornings.
3. Submit your registration form. Staff at the House of Justice will help you fill in the forms. You declare your activity type using NACE economic activity codes. Choose broadly but accurately — “information technology services” or “consulting and professional services” are common choices.
4. Pay the registration fee. Standard registration costs 20 GEL and is processed within one business day. Expedited same-day registration costs 50 GEL. Most people pay the 50 GEL and walk out with their IE certificate the same morning.
5. Register with the Revenue Service. After receiving your IE certificate, you register on rs.ge (the Georgian Revenue Service portal). This is where you will file your monthly or quarterly income declarations and pay tax. The portal has an English-language interface as of 2026, though some sections still require navigation experience on first use.
6. Apply for the small business status. This is a separate application within the Revenue Service portal or at the local tax office. You formally elect to be taxed under the small business regime (1% on turnover). Without this election, you are taxed under the standard income tax schedule, which is significantly less favourable.

The whole process — House of Justice visit plus Revenue Service registration — typically takes one full day if you arrive prepared. Some people complete it in a single morning.

The 1% Small Business Tax Regime: How It Works in Practice

The headline figure is 1% of gross turnover. Here is what that means in practice and where people get confused.

It is a turnover tax, not a profit tax. You pay 1% of every lari that comes into your business, regardless of your expenses. If you earn 10,000 GEL in a month and spent 8,000 GEL producing that work, you still pay 100 GEL in tax (1% of 10,000). For most service-based freelancers whose main cost is their own time, this is excellent. For people with high input costs, it requires more thought.

The threshold in 2026 is 500,000 GEL annually. Below this, the rate is 1%. Between 500,000 GEL and 2,000,000 GEL, the rate rises to 3%. Above 2,000,000 GEL, you no longer qualify for the small business regime at all and are subject to standard corporate or income tax rates. For context, 500,000 GEL is approximately 180,000 USD at 2026 exchange rates — well above what most solo freelancers earn.

Filing is monthly or quarterly. If your turnover is consistent, quarterly filing is simpler. You declare your income on rs.ge and pay the 1% within 15 days after the end of each reporting period. There is no annual reconciliation required under the small business regime — what you declare each period is what you pay.

VAT does not apply to small business regime holders unless they voluntarily register for VAT. Almost no solo freelancer needs to do this. If your clients are businesses that need to reclaim Georgian VAT, it becomes relevant — but for most foreign clients billing in USD or EUR, it is irrelevant.

Income you pay yourself is not taxed again. As an IE, there is no separate dividend tax or salary tax when you withdraw money from the business. The 1% turnover tax is your complete Georgian tax obligation on that income.

Opening a Georgian Bank Account as a Foreign National

This step causes the most friction for newcomers in 2026, and it is the one that has changed most since 2024.

Following tightened anti-money-laundering compliance across Georgian banks in 2024 and 2025, the account-opening process for foreign nationals now requires more documentation than it did previously. Expect to provide your passport, your IE registration certificate, evidence of your business activity (client contracts, screenshots of invoices, or a website), and sometimes a utility bill from your home country confirming your address there.

TBC Bank and Bank of Georgia remain the two main options. Both have English-language service in their main Tbilisi branches. TBC’s mobile app is generally rated more user-friendly for foreign account holders. Bank of Georgia has historically been more flexible with documentation requirements, though this varies by branch and by the individual compliance officer you encounter on the day.

The realistic timeline: if your documentation is complete and your business profile is straightforward, accounts are opened within one to three business days. Some applicants with less conventional business profiles wait longer or are asked for additional documentation.

A Georgian bank account is not strictly required to operate as an IE — you can receive payments internationally and declare the income in GEL equivalent — but it makes the Revenue Service filings significantly cleaner and avoids exchange rate ambiguity. Most freelancers find the account worth the effort.

2026 Budget Reality: What It Actually Costs to Set Up and Live Here

Below are honest 2026 figures for the setup costs and ongoing living costs that matter to a working freelancer.

Setup Costs

• IE registration (expedited): 50 GEL
• Revenue Service registration: Free
• Bank account opening fee: 0–30 GEL depending on account type
• Optional: accountant or legal adviser for first month setup: 200–500 GEL for a one-time consultation and setup assistance
• Total minimum setup cost: 50–80 GEL if you do it yourself; 300–600 GEL if you use professional help for the first filing

Monthly Living Costs (Tbilisi)

• Budget: 1,500–2,200 GEL/month (shared apartment in a central area, eating mostly at home and local canteens, public transport)
• Mid-range: 2,800–4,500 GEL/month (private one-bedroom apartment in Vake or Vera, mix of cooking and restaurants, occasional taxi use)
• Comfortable: 5,000–8,000+ GEL/month (modern two-bedroom apartment, eating out regularly, gym membership, private health insurance, occasional travel)

Monthly Living Costs (Kutaisi and Batumi)

Kutaisi runs roughly 20–30% cheaper than Tbilisi across all tiers. Batumi is more seasonal — summer months push rents up sharply, particularly for anything near the seafront. In winter, Batumi is noticeably cheaper than Tbilisi for accommodation. For a long-term stay, Batumi is worth considering between October and April; Kutaisi offers consistently lower costs year-round and has benefited from Kutaisi International Airport’s expanded direct routes in 2025 and 2026.

Health Insurance: Your Legal and Practical Obligations

Georgia does not have a universal public health system that covers foreign nationals in the way that, say, EU countries cover EU residents. As a foreign IE, you are responsible for your own health coverage.

There is no legal requirement under Georgian law for a sole trader to hold health insurance. However, your home country’s rules may require you to maintain coverage while abroad, and practically speaking, going uninsured in a country where private hospital costs are not trivial is an unnecessary risk.

The main options in 2026:

• Georgian private health insurance: Local insurers including Aldagi, Imedi L, and GPI Holding offer plans for foreign residents. A standard plan covering outpatient, inpatient, and emergency care runs approximately 80–200 GEL per month depending on your age, coverage level, and whether dental is included. These plans are valid within Georgia only.
• International health insurance: Providers like Cigna Global, AXA, and Safety Wing (which updated its remote worker plans in 2025) offer policies that cover Georgia and often your home country visits simultaneously. These typically cost 150–350 GEL equivalent per month at the entry level.
• Travel insurance extended stays: Some travel insurers allow policy extensions up to 12 months. Coverage is thinner than dedicated health plans but significantly cheaper. Not recommended for a stay longer than three months or for anyone with pre-existing conditions.

The practical advice: if you are staying more than two months, get a proper health insurance policy. The cost is low relative to the peace of mind, and Georgian private hospitals — particularly in Tbilisi — range from adequate to very good, but they require upfront payment or insurance confirmation before treatment in most cases.

Staying Legal: Visa Rules and the One-Year Visa-Free Stay

Georgia grants visa-free entry for one full year to citizens of approximately 95 countries, including all EU member states, the United Kingdom, the United States, Canada, and Australia. This is not a 90-day Schengen-style limitation — you can stay for 365 consecutive days without a visa. This is one of the most generous arrangements of any country in the region and is a major reason Georgia works as a freelancer base.

After one year, you have several options:

• Leave and re-enter. Many countries’ citizens can simply cross into Armenia or Turkey and return the same day. Georgia’s rules have historically allowed this. However, Georgian border procedures have become more scrutinised since 2024, and officials have discretion to question the purpose of frequent short trips. It is not a guaranteed solution for indefinite stays.
• Apply for a residence permit. If you have registered as an IE and have been operating for at least six months, you can apply for a temporary residence permit based on business activity. This permit is renewable and gives you proper legal residency. The application is made through the Civil Registry Agency and typically costs 210 GEL for a standard processing time of 30 days.
• Remotely from Georgia programme. This programme, launched in 2020 and updated in 2022 and again in 2025, is aimed at remote workers who want an officially recognised status. In 2026, it primarily facilitates a type B work visa for employed remote workers — those on a payroll from a foreign employer. Freelancers who are self-employed generally find the IE route plus a standard visa-free stay or residence permit more straightforward. The programme is worth checking if you are employed by a foreign company rather than truly self-employed.

One important nuance: your visa-free year begins from your first entry, not from registration. If you entered Georgia in January 2026, your year ends in January 2027 regardless of when you registered your IE. Track your entry date carefully.

Tax residency in Georgia — which entitles you to the benefits of Georgia’s double taxation treaties — requires 183 days or more in the country in a calendar year. This is worth understanding if you plan to use Georgia’s tax treaties to reduce withholding taxes on foreign income. A qualified Georgian tax adviser can confirm whether a specific treaty applies to your situation.

Frequently Asked Questions

Can I register as an Individual Entrepreneur in Georgia without speaking Georgian?

Yes. The House of Justice has English-speaking staff at main branches in Tbilisi, Kutaisi, and Batumi. The Revenue Service portal (rs.ge) has an English interface in 2026. Many freelancers complete the entire registration process in English without a translator, though having one for the first Revenue Service filing is useful if you find the portal confusing.

Does registering as an IE in Georgia affect my tax obligations in my home country?

It depends entirely on your home country’s tax rules. Georgia’s 1% tax does not replace your home-country obligations — it is simply what you pay in Georgia. Citizens of countries with worldwide taxation systems, such as the United States, must still report foreign income. EU citizens generally fall under residency-based taxation and may be able to exit their home tax system after 183 days abroad. Always consult a tax adviser in your home country before assuming you are covered only by Georgian tax.

How long does it take to receive payment from foreign clients into a Georgian bank account?

International wire transfers (SWIFT) typically arrive within one to three business days. Wise (formerly TransferWise) transfers to Georgian lari accounts are often faster — sometimes same-day. Stripe and PayPal payouts to Georgian accounts are possible but have had inconsistent track records for foreign-registered entities in Georgia. Most freelancers use SWIFT or Wise for reliable client payments in 2026.

Is the 1% small business tax rate guaranteed to stay, or could it change?

No tax regime is permanently guaranteed in any country. The 1% small business rate has been stable in Georgia since its introduction and remains unchanged as of 2026. The Georgian government has signalled no intention to raise it in the near term, and the regime is seen as a deliberate tool to attract foreign entrepreneurs. That said, anyone making long-term financial plans should monitor changes through the Revenue Service or a local adviser.

Do I need an accountant, or can I manage Georgian tax filings myself?

As an IE on the small business regime, the filings are genuinely simple compared to most countries — you declare your monthly or quarterly turnover and pay 1% of it. Many freelancers manage this themselves using rs.ge after an initial setup. Hiring a Georgian accountant for 50–150 GEL per month is common and eliminates any risk of errors, which is worthwhile if your client income is variable or comes in multiple currencies that need GEL conversion.

📷 Featured image by Μαρίνα Βιλκού on Unsplash.