—Principle
Only domestically sourced income
is taxable.
Territorial Taxation is a simple rule that determines taxation by the source of income, not by personal residence. Foreign-source dividends, ETF capital gains, and crypto profits are generally not subject to tax. This contrasts with Japan-style worldwide taxation.
Source · Domestic
Salary, local business revenue, domestic rental income, and Georgian company stock dividends/gains are
taxable.
Source · Foreign
Foreign stock and ETF dividends/gains, and revenue from foreign servers are
generally exempt.
01Personal Income Tax
Personal Income Tax (PIT)
A flat 20%, softened by regimes.
Standard Rate
20%
FLAT / ON TAXABLE INCOME
With Small Business
1%
ON TURNOVER / UP TO 500K GEL
Salary
Flat 20% as standard. Withheld at source — employees do not file separately.
Dividend
In most cases 5% withholding completes the obligation.
Interest
In most cases 5% withholding completes the obligation.
Residential Rent
Optional 5% on gross income (no expense deductions).
Micro Business
Annual revenue up to 30,000 GEL (~$11,000) registers at 0%. Conditions: no employees, work completed solo.
Small Business
Annual revenue up to 500,000 GEL (~$185,000) at 1%. Excess at 3%. Professional services like legal, accounting, finance excluded.
Freelancer Default
Without registration, 20% applies automatically. Registration takes 1 day to several days.
2025 Update
Agritourism and wine tourism Small Business Status raised to
700,000 GEL turnover cap. Construction services (codes 41.2 / 42 / 43) excluded from Small Business eligibility (from February 2025).
02Value-Added Tax
Value-Added Tax (VAT)
18% standard — included in most shelf prices.
Registration Trigger
100K.
GEL / 12-MONTH ROLLING
Export Services
0%
ZERO-RATED
Scope
Domestic taxable supplies and imports. Exports, healthcare, education, and similar are zero-rated or exempt.
Registration Threshold
Mandatory once 12-month rolling taxable supplies exceed 100,000 GEL. Voluntary registration is also possible.
Invoicing
E-invoicing is the standard, issued and stored via the tax portal. Advance payments must be linked to the corresponding invoice.
Input VAT Credit
VAT-registered businesses can deduct input VAT. Registration may benefit input-heavy operations.
03Property Tax
Property Tax
Scaled by household income — and often zero.
Property tax rates depend on the prior year\'s household income. Unlike Japan\'s fixed asset tax, no tax applies below a certain income level.
| Prior Year Household Income | Rate (on Market Value) | Treatment |
|---|
| Under 40,000 GEL | Exempt | Property tax does not apply (land tax separate) |
| 40,000 – 100,000 GEL | 0.05% – 0.2% | Set by municipality within the range |
| Above 100,000 GEL | 0.8% – 1.0% | Higher-income brackets taxed on market value |
Taxable Assets
Residential and other buildings, plus certain movable property (depending on municipal rules).
Market Value Assessment
Determined by municipal valuation or appraisal. Authorities may reassess if filings appear understated.
Filing & Payment
Annual filing per municipality\'s schedule.
Small Business Treatment
Only 25% of Small Business Status income is counted toward household income, often keeping owners in the exempt bracket.
Practical View
For most individuals, property tax is "either non-existent or minimal." Small households typically owe a few tens to a few hundred GEL per year.
04Land Tax
Land Tax
Municipal coefficients, per-square-meter logic.
Non-Agricultural Base
0.24 GEL/m² × municipal coefficient (max 1.5). Central districts have higher coefficients.
Agricultural
Per-hectare base × regional coefficient.
Acquisition / Use Change
Always check the municipal coefficient at the location. It varies by district even within the same city.
Calculation Example
For a 100m² non-agricultural plot in a central district (coefficient 1.3):
0.24 × 100 × 1.3 = 31.2 GEL / year
05Import Duty & Import VAT
Import Duty & Import VAT
CIF-based, with a generous personal parcel allowance.
Import Duty
0/5/12%
BY HS CODE
Import VAT
18%
ON CIF + DUTY
Parcel Duty-Free
300.
GEL / 30KG / NON-COMMERCIAL
Tax Base
CIF = goods + freight + insurance.
Duty Rate
By HS code: 0%, 5%, or 12%.
Import VAT
Standard 18%, base = (CIF + duty).
Personal Parcel Exemption
Parcels up to 300 GEL and 30kg are duty-exempt (non-commercial purpose; some excluded items like food; frequency limits apply).
Traveler Allowance
Separate exemption applies; excess is taxable.
Example A · 0% Duty Item
Camera (CIF 2,800 GEL)
Duty0 GEL
Import VAT (2,800 × 18%)504 GEL
Total Tax504 GEL
Example B · 12% Duty Item
Clothing (CIF 450 GEL)
Duty (450 × 12%)54 GEL
Import VAT ((450+54) × 18%)90.72 GEL
Total Tax (+ clearance fee)144.72 GEL
06Excise
Excise
Embedded in shelf prices — invisible to most consumers.
Examples
Tobacco products, alcohol, fuel, certain vehicles.
Price Reflection
Usually built into retail prices — consumers bear it without much awareness.
Filing
Individuals rarely need to file directly; handled by businesses.
·Note
Pension Contributions — a "non-tax" contribution
The 2+2+2 funded pension scheme. Since this is a contribution, not a tax, it is managed separately from PIT and shown as "contribution" on payslips.