Georgia is a non-EU country in the South Caucasus at the eastern end of the Black Sea, with a population of roughly 3.7 to 4.0 million. The official currency is the Georgian Lari (GEL). As a rule, foreigners may own 100% of a Georgian company, and the country is often used as a practical base by internationally active entrepreneurs.
Georgia offers one of the more business-friendly tax systems in the region. It combines a distribution-based corporation tax model with comparatively straightforward company administration and flexible residence options, which makes it attractive for founders, investors and internationally active entrepreneurs.
A Georgian limited liability company (LLC) is a flexible legal form under Georgian company law. It is suitable for trading, holding, consulting, IT and service businesses operating within or outside Georgia.
The standard corporation tax rate is 15% and is generally triggered upon profit distribution. Reinvested profits remain tax-free until distribution, subject to certain deemed distribution rules. Under specific special regimes, such as International Company Status or in Free Industrial Zones, the effective tax burden can be reduced to 5% or, in individual cases, to 0%. Dividend withholding tax is 5% as standard, although exemptions may be available under certain reliefs.
For individuals who move their tax residence to Georgia, foreign income may be tax-advantaged depending on tax residency status and the type of income. Careful structuring is still required, particularly where income is managed or controlled from Georgia. Georgia has a broad network of double tax treaties, including with Germany, Austria and Switzerland, which can facilitate cross-border tax planning.
The legal system is based on civil law. Company registration is typically efficient and, once the paperwork is prepared, can be completed within one to two working days. A local managing director is generally not required for an LLC. Banking services are provided by established Georgian banks that enable both domestic and international transactions. Remote account opening may be possible depending on the bank and the compliance profile, and digital banking solutions are widely available.
Georgia’s appeal lies in its comparatively low administrative burden, moderate operating costs, distribution-based taxation and its strategic position between Europe and Asia. The country is particularly interesting for consultants, IT entrepreneurs, traders and internationally mobile business people looking for a structured, legally robust environment.
Contact us to discuss your company formation in Georgia, tax structuring options and a potential change of residence.
