Georgia
Investment residency
According to new regulations which came into affect on July 2, 2019, there are 2 different options for obtaining an Investment Residence Permit (Permanent Residence permit) of Georgia:
1. By making a personal investment in real estate; buying non-agricultural real estate (land, apartment, commercial area etc.) in Georgia which costs more than USD 300,000.
An Appraisal report will need to be prepared evidencing that the market price of the property exceeds USD 300,000.
The Investment Residence Permit will initially be issued for 5 years. If after 5 years, the applicant does not sell the real estate property, they will be granted with a Permanent Residence Permit of Georgia.
2. Obtaining Investment residency by making investment through Georgian Company.
Applicants will need to incorporate a company in Georgia and make an investment of USD 300,000 in his/her Company (buy real estate, issue loans, money in the company’s term deposit account, etc.)
An evaluation report should be prepared evidencing that the amount of investment exceeds USD 300,000.
For this kind of Investment Residency there are no requirements for any kind of turnovers or additional conditions.
Following the incorporation and investment, the Investment Residence Permit will be issued for 5 years. After the applicant has been granted with the investment residence permit, it is obligatory that company’s annual turnover must exceed certain minimum limits:
- USD 50,000 for the first year;
- USD 100,000 for the second year;
- USD 120,000 for the third, fourth and fifth years.
If the applicant is able to meet this criteria, they will receive a Permanent Residence Permit after 5 years.
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.
An applicant's spouse, minor children and incapable dependents may apply for permanent residency; children over 18 y.o. and parents may apply for a temporary residency permit.
investment
Investment in Real Estate or a Georgian Company
Investment of at least USD 300,000 in non-agricultural real estate or a newly-incorporated Georgian company.Requirements
- Documents certifying USD 300,000 investment in real estate or investment in a newly-formed Georgian company.
- Criminal Record report from your local police agency.
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
- Proof of ownership or rental housing
- dual citizenship No
- Family members included Yes
- land ownership Yes
- Physical residence required No
- Personal visit required No
- Language skills required No
- Interview required No
- Investment Single $300,000
- Investment Family 4 $300,000
- Minimum annual income -
- Time to citizenship 120
- Time to permanent residency 60
- Visa-free countries 122
- Financing available No
Benefits
citizenship benefits
permanent residency benefits
Country details
Visa Free Travel
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.
The V.A.T. standard rate is 18%. Certain goods and service transactions are tax exempt.
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.
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. We have 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