Country Hub · Georgia · 2026

Georgia

20% flat income tax · Virtual Zone: 0% on foreign IT income · Small Business: 1% turnover tax · 0% CGT on securities · VAT 18% · Tbilisi top digital nomad city

20% flat rate on employment income (this is the country Georgia — capital Tbilisi — not the US state)

Income Tax Rate

0% corporate income tax on foreign-source income for registered IT/software companies in the Virtual Zone

Virtual Zone (VZ) Status

1% turnover tax for qualifying self-employed and small businesses with annual revenue under GEL 500,000

Small Business Status

Calculate Your Georgia (Country) Tax

Georgia (Country) Tax Facts

— 2026

Income Tax Rate

20% flat rate on employment income (this is the country Georgia — capital Tbilisi — not the US state)

Virtual Zone (VZ) Status

0% corporate income tax on foreign-source income for registered IT/software companies in the Virtual Zone

Small Business Status

1% turnover tax for qualifying self-employed and small businesses with annual revenue under GEL 500,000

Capital Gains Tax

5% on real estate gains; 0% on securities for individuals

Social / Health Insurance

State health insurance is included in the 20% flat rate for most employees; no separate mandatory SS contribution for employees

VAT

18% (standard rate)

Tax Residency Threshold

183+ days in Georgia in a calendar year triggers tax residency; worldwide income taxable at 20%

Foreign Income (Non-Residents)

Only Georgian-source income is taxed for non-residents; foreign-source income is not subject to Georgian tax

Tax Year

1 Jan – 31 Dec

Quick Country Comparison

— at GEL 36,000

Country	Take-home	Eff. Rate	vs Georgia (Country)
Georgia (Country)	~GEL 28,800	~20%	—
Armenia	~GEL 28,800	~20%	~GEL 0
Bulgaria	~GEL 27,360	~24%	−~GEL 1,440
UAE	~GEL 36,000	0%	+~GEL 7,200

Georgia (country): 20% flat income tax on GEL 36,000/year (~$13,000 USD). Armenia: 20% flat income tax + social contributions. Bulgaria: 10% flat + ~13.78% employee social. UAE: 0% income tax. Illustrative — not tax advice. Georgia (country) is distinct from the US state of Georgia.

Want your exact figures? Use the full Georgia (Country) calculator →

Comparison Guides

See how Georgia (the country, Tbilisi) compares to Armenia, Bulgaria, and the UAE on income tax and digital nomad appeal.

Georgia vs Armenia Tax Comparison Two Caucasus flat-tax nations for digital nomads

Georgia vs Bulgaria Tbilisi vs Sofia — European nomad hubs compared

Georgia vs UAE Tbilisi low-tax vs Dubai zero-tax

Salary Guides

Georgia (the country, capital Tbilisi) uses the Georgian Lari (GEL). The Revenue Service of Georgia (rs.ge) administers a 20% flat income tax with no separate mandatory employee social security contribution — the 20% covers health insurance contributions. The Virtual Zone (VZ) regime allows registered IT companies to pay 0% corporate tax on revenue derived from foreign sources, making Georgia extremely attractive for software and tech businesses serving international markets. Small Business Status at 1% turnover tax is available to self-employed individuals and sole traders with revenue under GEL 500,000/year.

Moving from Georgia (Country)

Tbilisi has become one of Europe's most popular digital nomad destinations, ranked #2 on Nomad List in 2025. The combination of a low 20% flat tax, Virtual Zone 0% for IT companies, low cost of living, EU association agreement, and a vibrant cafe-and-coworking culture make Georgia (the country) exceptionally attractive for remote workers and entrepreneurs. Georgia does not have a formal digital nomad visa but allows visa-free entry for up to 365 days for citizens of over 90 countries. EU membership application was submitted in 2023.

2026 Georgia (Country) Tax Changes

Virtual Zone status continues — Georgia's Virtual Zone (VZ) regime for IT companies paying 0% corporate tax on foreign-source income remains active in 2026; the Revenue Service has not announced any changes to VZ eligibility criteria.
20% flat income tax maintained — The 20% flat personal income tax rate is unchanged for 2026; this applies to residents on worldwide income after 183+ days of presence.
Tbilisi ranked #2 digital nomad city — Tbilisi was ranked #2 in Europe for digital nomads on Nomad List in 2025, driven by low costs, fast internet, and the 365-day visa-free entry for qualifying nationalities.
EU application submitted — Georgia submitted its EU membership application in 2023; candidate status is pending; full accession timeline is uncertain but the EU association agreement (DCFTA) is already in force.
Small Business Status at 1% — The 1% turnover tax for Small Business Status remains available for qualifying self-employed individuals and sole traders with annual turnover under GEL 500,000; this is one of the world's lowest effective tax rates for freelancers.

Last Updated: June 2026 · Daniel · CountryTaxCalc