Georgia’s 1% Tax and 365-Day Stay: The Ultimate Strategy

For remote professionals and digital entrepreneurs, the pursuit of fiscal efficiency often leads to complex corporate structures in the Caribbean or the UAE. However, Georgia (the country) offers what we at ExpatBlueprint Co. categorize as the ‘ultimate expense-collapse destination.’ By combining a statutory 365-day visa-free entry with a 1% flat tax on turnover, Georgia has positioned itself as the premier jurisdiction for lean, high-growth remote operations.

Step 1: Get A Passport – The Foundational Requirement

Before analyzing tax codes or scouting real estate in Tbilisi, the absolute physical requirement is a valid international passport. This document is the cornerstone of your mobility. Under Georgian Law, citizens of approximately 95 countries (including the US, EU, UK, and Canada) can enter and remain in the country for one full year without a pre-arranged visa. Your passport must be valid for at least six months beyond your entry date. Without this physical asset, the legal path to the 1% Small Business Status is closed.

The 365-Day Visa-Free Entry (Decree No. 255)

According to Ordinance No. 255 of the Government of Georgia, eligible foreign nationals are granted a 365-day stay upon arrival. Unlike the 90/180-day rules prevalent in the Schengen Area, Georgia allows for a continuous year of residency. At the end of the year, a simple ‘border run’—crossing into Turkey, Armenia, or Azerbaijan and returning—resets the 365-day clock, effectively providing a legal perpetual residency mechanism.

Small Business Status: The 1% Tax Mechanism

The primary draw for remote workers is the Small Business Status (SBS). Under the Tax Code of Georgia, Article 88 to 91, individuals registered as Individual Entrepreneurs (IE) can apply for this preferential regime if their annual turnover does not exceed 500,000 GEL (approximately $185,000 USD).

• Tax Rate: 1% of gross turnover up to 500,000 GEL.
• Threshold Breach: If turnover exceeds 500,000 GEL, the rate increases to 3% only for that specific year.
• Reporting: Monthly digital filing is required, significantly reducing administrative overhead.
• Exclusions: Consulting services are technically excluded under certain interpretations; however, most digital services, marketing, and software development qualify under standard NACE codes.

Analytical Comparison: Global Remote Work Hubs

Verified Living Costs & Operational Timelines

Operationalizing your move to Georgia follows a predictable timeline. Once you have completed Step 1 (Passport Acquisition), the timeline for fiscal optimization is as follows:

• Day 1: Arrival and SIM card acquisition.
• Day 2-3: Registration as an Individual Entrepreneur (IE) at the Public Service Hall (Cost: ~20-50 GEL).
• Day 4-7: Application for Small Business Status (Active from the 1st of the following month).
• Day 8: Opening a local multi-currency business account (TBC or Bank of Georgia).

Living Expenses (Monthly Average): In Tbilisi or Batumi, a high-end 1-bedroom apartment ranges from $600 to $900 USD. Utility costs (Gas, Electric, Fiber Internet) typically average $80-$120 USD monthly, facilitating a dramatic ‘expense collapse’ compared to London, New York, or San Francisco.

Regulatory Compliance and Next Steps

While the 1% tax rate is legally codified, proper setup is essential to avoid being classified as a standard taxpayer (20% flat tax). Documentation must align with your actual economic activity. To ensure your transition is friction-free and compliant with both Georgian law and your home country’s exit tax requirements, you must audit your current situation.

Ready to collapse your expenses?

Start with our 27-Point Readiness Audit to identify gaps in your mobility strategy. Once audited, use the Pathway Engine to generate your customized deployment roadmap to Georgia.