Georgia's flat 20% income tax ($20,000 at $100,000 USD) is $5,000 lower than Vietnam's progressive rates ($25,000). Both are top global digital nomad destinations โ€” Ho Chi Minh City/Hanoi versus Tbilisi. Georgia wins clearly on taxes and cost of living (Tbilisi is cheaper than major Vietnamese cities for expats). Vietnam wins on cultural richness, food, Southeast Asian connectivity, and proximity to other Asian digital nomad hubs (Thailand, Bali, Philippines). The visa situation is also key: Georgia offers 365-day visa-free for many nationalities, while Vietnam offers a 90-day e-visa (extendable). For US nomads, both require annual US tax filing regardless of country of residence.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

๐Ÿ‡ป๐Ÿ‡ณ Vietnam

5โ€“35%

Progressive Personal Income Tax

Progressive 5-35% for residents; tax-free threshold on income under VND 11M/month

๐Ÿ‡ฌ๐Ÿ‡ช Georgia

20%

Flat Personal Income Tax

Flat 20% personal income tax โ€” simple, transparent, low

Typical Annual Savings

At $100,000 income:

$5,000

Georgia's flat 20% income tax ($20,000 at $100K USD) is $5,000 lower than Vietnam's progressive rates ($25,000). Both are top digital nomad destinations โ€” Ho Chi Minh City/Hanoi vs Tbilisi. Georgia wins on taxes and cost of living; Vietnam wins on culture, food, and Southeast Asia connectivity.

Tax Savings by Income Level

IncomeVN TaxGE TaxSavings10-Year
$50,000 $8,000$10,000-$2,000-$20,000
$75,000 $15,000$15,000$0$0
$100,000 $25,000$20,000$5,000$50,000
$150,000 $42,000$30,000$12,000$120,000
$250,000 $80,000$50,000$30,000$300,000
๐Ÿ’ก

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Vietnam Pros and Cons

โœ… Pros

  • Lower income tax at $50K ($8K vs $10K) โ€” Vietnam is cheaper at lower incomes before Georgia's flat rate advantage kicks in
  • World-class street food, vibrant culture, and rich Southeast Asian lifestyle โ€” consistently top-rated by expat quality-of-life surveys
  • Strategic Southeast Asia location โ€” easy connections to Thailand, Singapore, Bali, Japan, and the rest of Asia
  • Excellent weather in the south (Ho Chi Minh City) year-round; cooler, more temperate climate in Hanoi and Hoi An

โŒ Cons

  • Progressive income tax reaches 35% โ€” significantly higher than Georgia's flat 20% at higher incomes
  • Vietnamese dong has depreciated against USD over time โ€” though most expats earn and spend in USD
  • 90-day e-visa requires exits or extensions โ€” no equivalent of Georgia's simple 365-day stay
  • Business regulations are complex and changing rapidly โ€” less straightforward than Georgia's simple business environment

Georgia Pros and Cons

โœ… Pros

  • Flat 20% income tax โ€” $5,000 cheaper than Vietnam at $100K, growing to $30,000 cheaper at $250K
  • Visa-free for 365 days per year for US, UK, EU, and many other nationals โ€” simplest long-stay option globally
  • Cost of living extremely low โ€” a digital nomad lives comfortably in Tbilisi for $1,000โ€“$1,500/month
  • Simple, efficient regulatory environment โ€” company registration in 1 day, bank accounts easily opened

โŒ Cons

  • Landlocked with less Southeast Asian and Pacific connectivity than Vietnam
  • Georgian cuisine and culture are excellent but less diverse and internationally renowned than Vietnam's
  • Cold winters โ€” Tbilisi can drop to -5ยฐC in January; less appealing than Vietnam's tropical climate
  • Not EU member โ€” no Schengen access, limited long-term immigration pathway for most nationalities

Frequently Asked Questions

Q: Is Georgia or Vietnam cheaper for digital nomads?

Georgia (Tbilisi) is generally cheaper for digital nomads on a budget. A comfortable digital nomad lifestyle in Tbilisi costs approximately $1,000โ€“$1,500/month including rent, food, and transport. Ho Chi Minh City is broadly similar at $1,200โ€“$1,800/month, while Hanoi is slightly cheaper. However, after factoring in the tax difference ($5,000/year in Georgia's favour at $100K income), Georgia is substantially more cost-effective for higher earners. Both cities offer excellent co-working spaces at $100โ€“$200/month and fast internet. Vietnam wins on cuisine diversity and Southeast Asian cultural experience; Georgia wins on total cost of living when tax is included.

Q: How does Vietnam's progressive income tax work for digital nomads?

Vietnam taxes residents (those spending 183+ days in Vietnam in a tax year) on worldwide employment and business income at progressive rates: 5% on VND 5โ€“10 million/month, 10% on VND 10โ€“18 million, 15% on VND 18โ€“32 million, 20% on VND 32โ€“52 million, 25% on VND 52โ€“80 million, 30% on VND 80โ€“160 million, and 35% above VND 160 million/month. Non-residents pay a flat 20% on Vietnam-sourced income only. Many digital nomads who spend less than 183 days in Vietnam are technically non-residents and only taxed on Vietnam-source income โ€” making Vietnam's tax rules important to understand for managing residency status carefully.

Q: What is Georgia's visa-free policy and how does it work for digital nomads?

Citizens of 94+ countries โ€” including the USA, UK, Canada, Australia, all EU member states, Japan, South Korea, and many others โ€” can enter Georgia without a visa and stay for 365 days per calendar year. This is one of the world's most generous visa-free policies. No application, no minimum income requirement, no bureaucracy โ€” simply arrive at Tbilisi airport and you can stay for up to a year. After 183 days in a calendar year, you become a Georgian tax resident and Georgian income tax (flat 20%) applies to locally-sourced income. Many digital nomads use this policy to spend winter months in Tbilisi, departing before the 183-day threshold if they wish to avoid Georgian tax residency.

Q: What are the internet and co-working options in Vietnam vs Georgia?

Both Vietnam and Georgia have excellent digital infrastructure for remote workers. Vietnam has multiple world-class nomad hubs: Ho Chi Minh City (vibrant, hot, busy), Hoi An (smaller, beach-accessible, creative community), Da Nang (growing tech scene, beach lifestyle), and Hanoi (cooler, more traditional). Co-working spaces are abundant and affordable at $100โ€“$200/month. Internet speeds are good, especially in major cities. Georgia's Tbilisi has outstanding internet speeds consistently ranking in top global rankings. Co-working is well-established with affordable options. The nomad community in Tbilisi grew dramatically post-2022 when many Russian and Ukrainian remote workers relocated there.

Q: What is Georgia's Virtual Zone company and how does it reduce taxes further?

Georgia has a special regime called the Virtual Zone Company (VZC) for IT companies that earn income exclusively from foreign clients (non-Georgian sources). VZC companies pay 0% corporate income tax on qualifying income from abroad โ€” though dividends when distributed to individuals are subject to 5% tax. For digital nomads operating as sole proprietors with foreign clients, Georgia's Small Business Status (1% gross turnover up to a threshold) or the IT company regime can reduce the effective tax rate well below the standard 20% personal income tax. These regimes make Georgia potentially even more attractive than the standard 20% rate suggests for structured business operations โ€” a specialist Georgian accountant can advise on the optimal structure.

Q: Do US digital nomads in Vietnam or Georgia need to file US taxes?

Yes. American citizens must file US federal tax returns annually regardless of where they live โ€” Georgia (the country) or Vietnam do not exempt Americans from this. However, the Foreign Earned Income Exclusion (FEIE) allows Americans to exclude up to approximately $126,000 of foreign earned income (2026) from US federal tax. Foreign Tax Credits offset any US tax with taxes paid to Georgia (20%) or Vietnam (5โ€“35%). Most Americans earning under $126,000 while abroad owe little or zero net US income tax but must still file. FBAR filing is also required if foreign bank accounts exceed $10,000. Greenback Expat Tax Services specialises in US expat tax returns covering both FEIE and foreign bank account obligations.

Q: What is the Vietnamese e-visa process for digital nomads?

Vietnam offers an e-visa (e-Visa) to citizens of 80+ countries, including the USA, UK, Canada, Australia, and most EU nations. The e-visa allows a 90-day single or multiple entry stay. Applications are submitted online through Vietnam's official immigration portal, processed in 3โ€“7 business days, and cost approximately $25 USD. Extensions of up to 90 days are possible through agents or the immigration department. Many digital nomads do 'visa runs' to neighbouring countries (Thailand, Cambodia, Laos) every 90 days to reset their stay. Vietnam does not currently have a formal digital nomad visa โ€” the e-visa is used by most remote workers. A formal long-stay visa programme has been under discussion by Vietnamese authorities.

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