100.000 USD in Georgia -> 1 year residency
300.000 USD in Georgia -> 3 to 5 year residency
Work permit 1 year:
with own company -> minimum turnover per foreigner of 50.000 GEL/year
Tax Residency without HNWI Status:
Tax Residency with HNWI Status:
Deposit/Investment: minimum 3 Million GEL or
Proof of income: 200.000 GEL/year the last 3 years
In this article, we will cover the interesting taxation system in the Republic of Georgia and how to get around the minimum stay of 183-days to become a tax resident through the HNWI-Status.
With the right personal and corporate international structure, it's possible to live completely tax-free in Georgia or extremely tax reduced.
Taxation in georgia
Georgia has a very simple taxation system compared to other countries and is an onshore jurisdiction.
There are 6 flat tax rates in Georgia - Corporate Profit Tax, Value Added Tax, Excise Tax, Personal Income Tax, Import Tax, and Property Tax.
Personal Income tax in Georgia is collected at a flat rate of 20% on local-source income. Foreign-source personal income is tax-exempt.
This taxation system is also referred to as a "territorial taxation system". I wrote an article about all 5 basic taxation systems around the world. You can read it here.
With the right personal and corporate international structure, it's possible to live completely tax-free in a territorial taxation system or extremely tax reduced. If you are interested in how we can help you with your specific situation, please schedule a call with our team.
Corporate Taxation is deferred flat at 15%. Deferred taxation or deferred corporate tax means that your company only will pay the 15% tax on profits that were distributed to you (e.g. with a dividend).
Georgia has the same corporate tax system as in Estonia.
How to become a tax resident in georgia?
There are two main ways to become a tax resident in Georgia.
Please note: Before becoming a tax resident, you should become a legal resident of Georgia because authorities often don't recognize long-term tourists as tax residents. For HNWI Status, you can only apply if you are a resident.
First, and the main way for most residents: Staying at least 183-days inside Georgia per calendar year.
The second way is interesting for all high net worth individuals. Once you meet the conditions to be recognized as an HNWI, you don't have to stay at all in Georgia to become a tax resident.
The Ministry of Finance will issue you directly the "Certificate of residence" after approval. This is how it looks like:
In the picture above, you can see a censored certificate of residence which was issued to one of our clients. He got the HNWI Status in Georgia with our help in about 3 months after applying.
How is an high net worth individual defined in georgia?
In Georgia everybody can apply for the HNWI-Status if he can meet one of the following conditions:
Annual income of 200.000 GEL the last three years (foreign or local income, proofed with tax returns, etc.)
Minimum deposit/investment of 3.000.000 GEL inside Georgia (e.g. property worth that amount or some financial products)
WHICH RESIDENCY OPTIONS ARE AVAILABLE?
Before you can apply for HNWI Status, you have to become a legal resident. With a touristic visa, it's not possible to apply!
There are several options available to become a resident. We help our clients mainly with these 3 ways to get residency in Georgia:
We will set up your company in Georgia and apply for a work permit. The work permit is usually issued for one year after approval. Every year we have to renew. To get this permit, your company has to make a minimum turnover per year per foreigner of 50.000 GEL.
Minimum investment of 100.000 USD inside Georgia (e.g. Property, real estate, etc.). You will receive a one year residency permit after approval.
Minimum investment of 300.000 USD inside Georgia (e.g. Property, real estate, etc.). You will receive a 3 to 5 year residency permit after approval.
Picture: Our residency card of Georgia.
Detailed information in my video
Please feel free to watch my detailed video about the HNWI Status in Georgia, it's requirements, and benefits.
Benefits of HNWI status in georgia
The main benefit of the HNWI Status is that you will become a tax resident of the Republic of Georgia without minimum stay.
Usually, you have to stay for that at least 183-days in the Caucasus country per year.
As a tax resident, you can make use of the territorial taxation system of Georgia. With the right structure, you can live legally tax-free on personal income levels.
With the certificate of residence, you can prove your home country where you live and pay taxes now so that you can completely opt-out of their tax system (if needed).
Please consider that you should build with us enough substance and stay a few weeks per year inside Georgia to make this option safer.
This is very important in the case of dual tax residency and usage of tie-breaker rules.
Please contact us if you want to get the HNWI Status in Georgia.
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The only thing you have to do now: Schedule an appointment for your free strategy call.
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