Georgia (GE)
Caucasus gateway with long visa-free stays for many nationalities, low business taxes, mountain-and-wine culture, and a fast-changing 2026 work-permit environment.
2026 Annual Changes — Georgia
Updated thresholds, benefits, and regulatory changes effective this year.
Georgia 2026 key changes: mandatory work permit (Right to Labour Activity — RLA) system launched March 1, 2026, requiring formal work authorisation for all foreign nationals before starting employment — a fundamental shift from previous laissez-faire approach. Statutory minimum wage remains GEL 20/month (unchanged since 1999). Flat 20% PIT, 18% VAT, Estonian-model CIT, Virtual Zone 0% IT revenue, and Small Business Status 1% all unchanged. The GEL stabilised around 2.65–2.70/USD.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Mandatory Work Permit — Right to Labour Activity (RLA) New mandatory work permit system introduced by Government Resolution No. 70 (February 20, 2026) — entirely new framework for Georgia, replacing informal tolerance of foreign work on visa-free stays | Foreign nationals must obtain formal RLA approval from the State Employment Promotion Agency (worknet.moh.gov.ge) BEFORE starting any paid work. Employers must post vacancies on worknet.moh.gov.ge at least 10 business days before applying to hire a foreigner. Fines: GEL 2,000 (1st offense), GEL 4,000 (2nd), GEL 12,000+ (repeat) for both workers and employers. Certain sectors barred entirely from foreign workers (delivery, taxi, tour guides). Existing employed migrants: transition until 1 January 2027. Self-employed: transition until 1 May 2026. | No mandatory work permit system — foreigners could work informally on visa-free stays in most sectors | 1 March 2026 |
| Personal Income Tax (PIT) Flat PIT rate unchanged | 20% flat rate on employment and Georgian-source business income. 5% on dividends (withheld at company level). 5% on bank interest. Capital gains from Georgian property held under 2 years: 20%. Foreign-source income: 0% (Georgia uses territorial taxation). | 20% flat (unchanged) | 1 January 2026 |
| Corporate Income Tax (CIT) — Estonian Model Estonian-model CIT unchanged; 0% on retained profits, 15% on distributed profits | 0% on undistributed/retained profits. 15% CIT triggered on: dividends distributed, non-business expenses, gifts/representations. 5% additional dividend withholding PIT at shareholder level. | Unchanged (Estonian model since 2017) | 1 January 2026 |
| VAT Registration Threshold and Rate VAT threshold and standard rate unchanged | GEL 100,000 taxable turnover in any rolling 12-month period triggers mandatory registration. Standard rate: 18%. Register within 2 business days of crossing threshold at rs.ge. | GEL 100,000 / 18% (unchanged) | 1 January 2026 |
| Small Business Status (SBS) — 1% Tax Regime SBS regime unchanged in rate; 2026 procedural update: status now activates on the day of application submission (previously next month) | 1% of gross revenue (up to GEL 500,000/year). Revenue exceeding GEL 500,000 triggers 3% rate and risks revocation of SBS after two consecutive years above threshold. Apply at rs.ge. Cannot be used for licensed professions, gambling, certain financial services. | 1%/3% structure unchanged; activation timing changed in 2026 | 1 January 2026 |
| Virtual Zone (VZ) — 0% Corporate Tax on IT Revenue Virtual Zone status confirmed unchanged; Revenue Service maintaining scrutiny of eligibility | 0% corporate income tax on qualifying foreign-sourced IT revenue (software development, system administration, IT consulting with Georgian technical staff). 15% CIT applies to domestic revenue or non-qualifying activities. VZ status requires active compliance — Revenue Service may assess misclassified income. | 0% on qualifying IT revenue (unchanged); scrutiny increased in 2024–2025 | 1 January 2026 |
| SSTG Accumulative Pension Contributions Contribution rates unchanged; state contribution tapers at higher income levels | Employee: 2%. Employer: 2%. State: 2% for annual salary below GEL 24,000; 1% for GEL 24,000–60,000; 0% above GEL 60,000. Total contribution: 6% (lower earners) to 4% (higher earners). Mandatory for Georgian citizens employed in Georgia; most foreign nationals on visa-free stays are not mandatory participants. | Same structure since 2019 | 1 January 2026 |
| HNWI Tax Residency Status HNWI (High Net Worth Individual) regime unchanged; corrected: investment threshold is USD 500,000 Georgian assets (not USD 2M) | Qualification: Georgian asset ownership ≥ USD 500,000, AND either global assets > GEL 3 million OR annual income > GEL 200,000 for prior 3 years. Benefit: Georgian tax residency without 183-day physical presence. Under Georgia's territorial tax system, foreign-source income is 0% for Georgian tax residents — HNWI status allows accessing this benefit without residency from days present. | Unchanged; Revenue Service updated guidance on qualifying investments | 1 January 2026 |
| Minimum Wage Statutory minimum wage unchanged — remains GEL 20/month for private sector (set 1999), GEL 115/month for public sector | GEL 20/month (private sector statutory minimum — set in 1999, unchanged). GEL 115/month (public sector minimum). Note: actual market wages significantly exceed this minimum — market-driven, with IT sector starting salaries GEL 2,000+/month. Various proposals to raise the statutory minimum are politically discussed but not enacted as of 2026. | GEL 20/month (unchanged since 1999) | Unchanged |
| GEL Exchange Rate GEL stabilised in 2.65–2.75 range after 2024 volatility | Approximately 2.65–2.71 GEL/USD as of Q1–Q2 2026 (NBG official rate). Approximately 2.85 GEL/EUR. Check nbg.gov.ge for daily rates. | 2.70–2.90 GEL/USD (2024 average) | Market rate — check nbg.gov.ge daily |
| Fintech and Banking KYC TBC Bank and Bank of Georgia intensified KYC compliance in 2026; National Bank tightening oversight of payment service providers | Enhanced source-of-funds requirements at major banks. Accounts with unexplained large cash deposits, CIS-country transactions, or stale identity documents risk restriction within 14–30 days of KYC notice. Keep updated source-of-funds documentation accessible. New fintech licensing framework active for payment service providers. | Less frequent KYC requests in 2023–2024 | 1 January 2026 |
| Driving Licence for Residence Permit Holders Residence permit holders must convert foreign driving licence to Georgian licence; IDP valid only for first 30 days from entry for visitors | Conversion requires medical certificate, vision test, and possible theory test for nationals from non-recognised countries. Process via sa.gov.ge (Service Agency). | Ambiguous enforcement previously | 1 January 2026 |
| Property Market — Tbilisi and Batumi Tbilisi and Batumi prices continue appreciating; property transfer tax 1% | Tbilisi central 1BR: USD 60,000–150,000. Batumi seafront 1BR: USD 80,000–200,000. Property transfer tax: 1% of declared sale price (buyer). NAPR registration: same-day/next-day available for premium fee. | Tbilisi central 1BR: USD 50,000–120,000 (2024) | 2026 market conditions |
| Orthodox Church Calendar 2026 Key 2026 Georgian public holiday dates | Christmas: 7 January. Epiphany: 19 January. Orthodox Easter: 12 April 2026 (Good Friday 10 April, Easter Monday 13 April). Mariamoba (Assumption): 28 August. Mtavarangelozoba: 8 November. | Orthodox Easter was 5 May 2024 | 7 January 2026 |
| Corporate Dividend Withholding Tax Dividend withholding tax rates confirmed unchanged | 5% withholding PIT on dividends paid to resident individual shareholders. 5% withholding on dividends to non-resident individuals. 0% on dividends paid to Georgian legal entities (participation exemption). | Unchanged | 1 January 2026 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Check visa-free period and passport validity — renew if under 9 months remaining.
- 2
Review RLA (Right to Labour Activity) requirements — if working in Georgia, confirm you have or have applied for the mandatory work permit by March 1, 2026. Check worknet.moh.gov.ge.
- 3
Review Revenue Service account (rs.ge) for outstanding notices.
- 4
Check SSTG pension contribution status — confirm mandatory or voluntary classification with employer.
- 5
Verify Small Business Status is active and activity qualifies. Note: SBS now activates day of application.
- 6
Track total taxable turnover for past 12 months — confirm distance from GEL 100,000 VAT threshold.
- 7
Review Virtual Zone company eligibility — all revenue must be qualifying foreign IT services.
- 8
Update bank KYC documents — upload new passport copy and proof of address to TBC SPACE / BOG app.
- 9
Check Georgian driving licence status — residence permit holders must convert foreign licence.
- 10
Review lease expiry dates and negotiate renewal before rent increases.
- 11
Cross-reference entry/exit dates against Georgian and home-country 183-day tax residence thresholds.
- 12
Back up all official documents digitally — residence card, NAPR extracts, company registration.
Where to Track Annual Changes
-
rs.ge (Revenue Service) — tax filings, VAT, SBS status, VZ eligibility
-
worknet.moh.gov.ge — Right to Labour Activity (work permits) from March 2026
-
psh.gov.ge (Public Service Hall) — residence permits, civil registry
-
napr.gov.ge — property and company registration
-
nbg.gov.ge (National Bank) — exchange rates, fintech regulation
-
pensions.ge (Pension Agency) — SSTG contributions and accounts
-
sa.gov.ge (Service Agency) — driving licences, vehicle registration
-
civil.ge / ocmedia.ge — English-language policy news
The new mandatory work permit (RLA) system effective March 1, 2026 is the most significant regulatory change for expats in Georgia in years. Foreign nationals who previously worked informally on visa-free stays must now obtain formal work authorisation. The transition period for existing employees runs until January 1, 2027 — but compliance should begin immediately. Georgia's statutory minimum wage remains GEL 20/month (private sector) since 1999 — one of the lowest statutory floors globally — though actual market wages are far higher. The HNWI tax residency asset threshold is USD 500,000 Georgian assets (not USD 2M as some sources state).
Annual Changes
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