1% tax for solo professionals.

What you get#

A Georgian Individual Entrepreneur (IE) with Small Business Status pays 1% tax on turnover up to 500,000 GEL per year — roughly €159,000. For foreign freelancers, IT contractors, and consultants who qualify, that 1% is the entire tax bill on Georgian-side income.

The structure is designed for solo work. No shareholders, no board, no audit, no minimum capital. You invoice your clients, you pay 1% to the Revenue Service, and the rest stays with you. Georgia adds no VAT on services exported to foreign clients, so most internationally-mobile readers also have no VAT to manage.

What we do#

We handle the entire setup remotely. You don't come to Georgia.

You send us a passport scan. We prepare your Power of Attorney and arrange its online notarisation together with your passport copy, the apostille and standard courier shipping of the originals to Georgia (a notary in your country can be arranged instead where needed). We register your IE at the National Agency of Public Registry, file your Small Business Status application with the Revenue Service, set you up with a Georgian legal address, and prepare your file for opening a bank account.

Registration is the quick part: the registry's official term is one working day once we file. Most of the lead time is your Power of Attorney being notarised, apostilled and couriered to us, so we plan that leg with you at the start and file as soon as the originals arrive. Once Small Business Status is granted, the 1% rate applies from the day we applied.

If you'd rather come to Tbilisi for the setup, we do that too. Either way, the result is the same.

What's included#

• Eligibility check — we confirm you qualify for the 1% rate before recommending the structure
• IE registration at the National Agency of Public Registry
• Small Business Status application with the Revenue Service
• Georgian legal address for your registration
• Bank account file preparation and onboarding support
• A briefing on what to file, when, and how to stay compliant

What you'll need to qualify#

The 1% rate has three eligibility conditions. We confirm all three before recommending the structure.

Your activity is eligible. Most professional services qualify — software development, IT consulting, design, marketing, writing, translation, training, advisory work. Some categories are excluded by Georgian tax law: financial services, certain regulated activities, and a small list of professional categories. We check yours against the list before you commit to anything.

You operate as an independent business, not as a disguised employee. The Revenue Service looks at how you actually work, not just your contracts. Multiple clients, real autonomy, project-based engagements — fine. One client paying you a regular monthly amount on an exclusive basis for years — that looks like employment, and the regime doesn't cover it. Most foreign freelancers and contractors pass cleanly. We tell you honestly if your situation needs adjusting.

Your turnover stays within the regime. 1% applies while your income for the calendar year stays within 500,000 GEL. If it goes over, 3% applies to your taxable income from the start of the month in which the 500,000 GEL limit is exceeded until the end of that year (Tax Code Art. 90(2)); earlier months stay at 1%. The following January, you reset to 1%. The structure only fails if you exceed the ceiling two calendar years in a row, at which point we'd already have moved you to an LLC.

For the full picture — VAT mechanics, common mistakes, banking and residency interactions — see the complete IE guide.

Going beyond 500,000 GEL#

If you cross the threshold mid-year — say in October — January through September stays at 1%, October through December at 3% on your taxable income for those months, not only on the amount above 500,000 GEL. Crossing once costs you nothing in the regime; only crossing twice in a row triggers a structural change.

For readers approaching the ceiling, we plan the move to an LLC well before it becomes forced. The transition is straightforward when handled in advance.

When IE with SBS is the right structure#

IE with Small Business Status fits readers who:

• Bill their own clients, mostly outside Georgia
• Work alone or with subcontractors, not employees
• Want 1% tax on eligible turnover, with the simplest setup

If you're building a software product company with a real Georgian team, Virtual Zone LLC at 0% on qualifying foreign-client income is a stronger fit. If your IT business has 2+ years of operating history and Georgian substance, International Company status applies — 5% corporate tax on distributed profit, 0% dividend withholding. We'll tell you which fits before you spend money on any of them. See Compare structures for the full picture.

Why Happy Georgia#

Independent advisory. No tied banks, no referral fees, no hidden product placement. We recommend what fits your situation, not what pays us a kickback.

Foreign clients only. Our entire practice is foreigners setting up in Georgia. Every engagement starts from your own situation: where you live and pay tax, who your clients are, and what you plan to do in Georgia.

Fixed pricing. We quote in EUR, we honor the quote, no surprises later.

Frequently asked questions#

Can I run an IE while living outside Georgia?#

Yes. The IE is set up via Power of Attorney delegated to our team in Georgia, monthly tax filings happen through the Revenue Service portal (we hold delegated portal access for ongoing clients), and there is no minimum stay in Georgia required to maintain the structure. Most of our IE clients live in Western Europe, Israel, the UK, or Asia and visit Georgia occasionally or not at all.

How long until I can invoice?#

As soon as your IE is registered, and registration takes one working day once we file. The time before filing is mostly your Power of Attorney being notarised, apostilled and couriered to Georgia, which depends on your country. We file for Small Business Status straight after registration, and once granted, the 1% applies from the day we applied.

Can I have employees?#

No. The IE structure is for solo work. If you need to hire, the right structure is an LLC, and we handle the conversion if your situation changes.

What about my home-country tax?#

Your Georgian IE pays 1% in Georgia. What you owe in your country of residence depends on your country's rules and its tax treaty with Georgia. Most foreign clients structure their lives so that their main tax residence is somewhere with a clean treatment of foreign business income — sometimes Georgia itself, via the HNW programme or tax residency. We discuss this in your consultation.

Does my IE help with Georgian residency?#

It can. An active Georgian IE with real activity supports certain residency applications. The IE is not designed primarily as a residency vehicle, but it is a relevant component for readers planning a longer-term setup in Georgia. See Residency.

What about banking?#

You can open a Georgian personal account in your own name and use it for IE income — this is legally permitted and the simplest setup. We prepare the bank file as part of the IE service. See Personal account.

Ready to set up?#

We assess your situation in a free consultation, confirm Small Business Status fits, and quote a fixed price. No surprises later.