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Georgia

Residency through business

Georgia grants temporary residency to applicants who either register a company in Georgia, or hold a minimum six-month employment contract for a Georgian company.

According to new regulations that came into force on July 5th, 2019, it is now obligatory that companies registered by foreigners need to have a minimum annual turnover of GEL 50,000 (around USD 20,000) if they are to be eligible for temporary residency.

Applicants employed in Georgian companies are also eligible to apply for temporary residence, provided that certain requirements are met.

The Temporary residence permit of Georgia is issued for periods of 6 months up to 6 years. Usually, the first issue is for a period of 6 months or 1 year.

After the applicant receives their Georgian Residence Card, his/her spouse and children are also eligible for a TRP.

Applicants that are interested in establishing a company in Georgia do not necessarily need to visit the country to do so; using power of attorney, our service partners in Georgia will be able to handle all the paperwork and bureaucratic processes, and also make the necessary submission for applying for temporary residency.

After 10 years of continuous, legal residency in Georgia, foreigners may be eligible to apply for Georgian citizenship, if they meet certain conditions, such as knowing the local language, history and customs, and/or have married a Georgian citizen, or are engaged in economic activities considered important to the Georgian state and economy.

investment


Startup or Employment

Registration of a company in Georgia with a demonstrated annual turnover of at least GEL 50,000 (USD 20,000), or employment in a Georgian company.

Requirements


- For most types of business, no start-up capital is required for incorporating a Limited Liability Company in Georgia.
- Registration is only carried out once, and there is no need for registration renewal annually.
- The amount of shareholders can be from 1 to 50 persons and there are no requirements regarding having local partners. An LLC can be totally owned and managed by foreign citizens.
- Foreign employees should be registered in a company with a minimum annual turnover of GEL 50,000 per each foreigner employed. They should also have a contract valid for at least 6 months and receive a minimum GEL 1,000 per month salary.
- Clean Criminal Record


Required steps after company registration:

- The applicant should have minimum turnover in his/her Georgian company of minimum 50,000 GEL (20,000 USD);
- The applicant must open his/her personal bank account in Georgia and put minimum 5000 USD on his/her personal bank account and obtain an account statement. This money can be withdrawn after the residency application has been submitted.
- We will prepare all necessary documents and submit the residency application together with the applicant;
- After the applicant fulfills the obligation of demonstrating a minimum GEL 50,000 turnover in his/her company, we can submit the residency application and the whole process (submitting application, getting approval on residency and collection of TR Card) takes roughly 45 calendar days. During this period, the applicant can leave Georgia after submitting the application and return after receiving approval on residency.

Restricted Nationalities


No nationality is officially restricted

dual citizenship


Dual citizenship is not recognized in Georgia. To become a citizen of Georgia, you must renounce your previous nationality.

Dual Citizenship not permitted except by special Presidential Decree


Documents Required


  • Certificate of legal stay in the country
  • Documents certifying Business Investment
  • Receipt of payment of fees
  • Certified copy of passport
  • Employment contract
  • Documents certifying position and salary
  • dual citizenship No
  • Family members included Yes
  • land ownership No
  • Physical residence required No
  • Personal visit required No
  • Language skills required No
  • Interview required No
  • Investment Single
  • Investment Family 4
  • Minimum annual income $4,200
  • Time to citizenship 120
  • Time to permanent residency 66
  • Visa-free countries 113
  • Financing available No

Country details

Georgia
GEL
995
Tbilisi
Asia
Georgian
4630000
Georgia is a former Soviet Republic, located on the border between Europe and Asia, on the east cost of the Black Sea. It shares borders with Russia to the north, with Turkey and Armenia to the south, and Azerbaijan to the southeast. It has a population of just over 3.7 million inhabitants, half of which live in Tbilisi, its capital. Its official language is Georgian and its legal tender currency is the Georgian Lari (GEL).

Visa Free Travel

With your new passport from Georgia you'll be able to access 113 countries visa free
>

Taxes

Tax residents in Georgia are those who reside for at least 183 days in Georgian territory.

Tax residents are only taxed on their Georgian-source income. This means that income earned abroad is not subject to Georgian taxation.

The flat tax rate is 20%, although dividends and interest income is taxed at a 5% final withholding tax on source and not included in the personal tax base.

Rental income from residential properties are also subject to a reduced 5% tax rate, provided that no deductions are taken from this income.

Capital Gains are usually subject to the income standard tax rate, but an exemption may apply from gains on the sale of real property, if it has been held at least two years. Gains on the sale of a residential property with an attached land plot are subject to a reduced tax rate of 5%.

Individuals owning real estate are subject to a real property tax ranging from 0.8% to 1% on the property market value. However, households with annual income below GEL 40,000 are exempted and those with annual income between GEL 40,000 and GEL 100,000 are subject to a reduced tax rate ranging from 0.05% and 0.2% on the property market value.

In Georgia, there are no net wealth, inheritance or transfer taxes. Gifts of a certain value may be subject to taxation.

In the event that your business activities are 100% IT services, we can help you to obtain the status of a Virtual Zone Company which will provide the following tax benefits: 0% - profit tax from services delivered outside Georgia and 0% VAT.

The V.A.T. standard rate is 18%. Certain goods and service transactions are tax exempt.

Regarding corporate taxation, resident entities are subject to a 15% tax on their profits, whether derived from local or foreign sources. Undistributed profits are not subject to taxation. If you want to learn more about Georgia’s corporate taxation, legal framework and tax treaties, you can check out incorporations.io/georgia.

This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.

  • Property tax Yes
  • Transfer tax No
  • Inheritance tax No
  • Net worth tax No
  • CFC law No
  • Tax residency days 183
  • Personal income tax rate 20%
  • Capital Gains tax rate 20%
  • Investment income tax rate 5%
  • Territorial taxation Yes

Procedures

Flag Theory | Passports.IO and our qualified service provider in Georgia will handle all paperwork, and guide you through each step of the process to ensure that it is as fast, efficient and pain-free as possible.

First, our lawyers will conduct a due diligence check on you to ensure that you are eligible and meet the criteria to apply for the program, and that your application will be approved.

If required, we may introduce you to our network of investment advisors in Georgia to find the most suitable investment option for your incorporation. If you are applying for the residency through business temporary residence permit on the basis of employment in a Georgian company, we will check the company's credentials and your contract to ensure your eligibility.

The processes are as follows:

1) Steps for registering Limited Liability Company in Georgia by personal visit:

- The applicant sends us a filled informational Company Incorporation Form (provided by us) and scanned copy of passport of shareholder(s) and director(s) by e-mail;
- Our service provider in Georgia will draft all the necessary documents before the applicant's arrival to Georgia;
- The applicant will inform us about the date of his/her arrival to Georgia and a date and time will be set for a meeting at our service partner's office;
- Following the meeting, our service provider will submit the documents in a commercial register together with the applicant on the same day. The company will be registered the next business day after submission;
- As soon as the company is registered, bank accounts will be opened for the company (including internet Banking).

Time needed:
The overall process takes just 2 business days.

2) Steps for registering a Limited Liability Company in Georgia remotely – on the basis of Power of Attorney:

- The applicant sends us a filled informational Company Incorporation Form (provided by us) and a scanned copy of the passport(s) of shareholder(s) and director(s) by e-mail;
- We will prepare and send a draft of the Power of Attorney to the applicant;
- The applicant sends us a Notarized and Apostiled (or Legalized) Power of Attorney and Notarized and Apostiled (or Legalized) copy of his/her passport. (POA should be Notarized and Apostiled in case it is signed in the country which is a member of the Hague Convention; In case the POA is signed in any other country, it should be Notarized and Legalized).
- We will draft any necessary documents and our Georgian service provider will submit the application for company formation. The company will be registered the next business day after submission;
- As soon as the company is registered we will send the applicant another draft of Power of Attorney which is required for opening bank accounts of the Company;
- The applicant sends us a Notarized and Apostiled (or Legalized) Power of Attorney for opening the bank accounts of the Company.
- Within 3-4 business days after receiving the original Power of Attorney, we will open the corporate bank accounts of the Company (including internet Banking);
- Corporate documents of the company, bank account details and DGpass (token) for internet banking will be sent to the applicant by DHL.

Time needed for POA process:
The overall process takes around 20-25 business days (depending on how soon the applicant provides notarized and Apostiled POAs).

3. Steps for Foreign Employees in a Georgian Company receiving Temporary Residency:

- Applicants will need to present the original copy of their labor contract with more than 6 months' remaining duration, and stating that they receive a net salary of minimum GEL 1000 (USD 350).
- It is obligatory that the company in which client is working has annual turnover of minimum GEL 50,000 for each foreign worker employed;
- We’ll complete all the necessary paperwork and submit the residency application together with the applicant;
- The whole process (submitting the application, getting approval on residency and collection of the TR Card) takes 45 calendar days. The applicant can leave Georgia after submitting the application and return after getting approval on residency.

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