Are you a digital nomad working remotely for international companies or earning income from freelance platforms like YouTube, Amazon, Etsy, Upwork, Fiverr, Toptal, and others? If so, you should take advantage of Georgia's small business status opportunities.
With this status, you can declare official income in Georgia and pay only 1% tax. This provides you with the opportunity to save on taxes and keep more money for yourself. Additionally, you can sign contracts on behalf of Georgia's small business and receive official government documents about income and tax payment. This can help confirm your employment and source of income, which can be useful for obtaining residency permits in different countries, opening bank accounts, and more.
However, small business status in Georgia is not suitable for all professions and jurisdictions. Listed below are the eligible and incompatible professions for small business status in Georgia.
Eligible Professions for Small Business Status in Georgia
- Software Development
- Digital content production
- Marketing Services
- Online Trading
- Intermediary services
- Any other services not listed in prohibited activities
Incompatible Professions for Small Business Status in Georgia
- Activities requiring a license or permit, except for activities related to M1 Private Taxi Permits moving around the capital city of Georgia;
- Activities requiring significant capital investment (production of excisable goods);
- Conducting currency exchange operations;
- Medical, architectural, legal or notarial, auditing, consulting (including taxation) activities;
- Gambling business;
- Staffing;
- Production of excisable goods.
It is also worth noting that to obtain small business status, you must register as an individual entrepreneur in Georgia, register for tax purposes, obtain a small business certificate, and open an account with a Georgian or international bank. Additionally, you will be required to file a monthly declaration and pay tax.
In what bank is better to open an account?
Under Georgian law, there are no requirements for a financial institution through which an individual Georgian entrepreneur with small business status will make financial payments in fiat currencies. Therefore, practically any bank or payment system will do.
The list of countries where financial institutions are considered undesirable for small business status in Georgia:
- Albania
- Belarus
- Bosnia and Herzegovina
- Burundi
- Venezuela
- Democratic Republic of the Congo
- Iran
- Iraq
- Puerto Rico
- Kosovo
- Cuba
- Lebanon
- Libya
- Russia
- North Korea
- Syria
- Somalia
- Sudan
- Central African Republic
- South Sudan
If you have any questions, do not hesitate to ask me!
Conclusion
If you are a digital nomad earning money through the internet, then take full advantage of Georgia's small business status!
Declare official income and pay only 1% tax
Sign contracts on behalf of Georgia's small business
Receive official government documents about income and tax payment (this can help confirm employment and source of income for purposes such as obtaining residency permits, opening bank accounts, etc.)
For Whom Is It Suitable:
For programmers, designers, marketers, and other digital nomads working remotely for international companies or earning income from freelance platforms like YouTube, Amazon, Etsy, Upwork, Fiverr, Toptal, etc.
Who Is It Not Suitable For:
List of Professions
Jurisdictions with which the status is not compatible.
You will not be able to operate as an individual entrepreneur in Georgia with small business status if your clients are located in the following countries:
- Russia
- Belarus
- Iran
- Syria
- Afghanistan
- ...
How to obtain small business status?
Register as an individual entrepreneur in Georgia.
Register for tax purposes.
Obtain a small business certificate.
Open a bank account.
Use an account in any international bank*
Obligations of an individual entrepreneur in Georgia:
Monthly filing of a declaration.
Payment of taxes.
Annual turnover up to 500,000 laris (~$170,000).
- Obtain a small business certificate.
- Open a bank account.
- Submit a monthly declaration and pay taxes.