If you are a global professional, the online chatter about Georgia's 1% tax regime likely triggers two distinct feelings: excitement and a deep sense of unease. The excitement is understandable; retaining 99% of your revenue is a powerful incentive. The unease, however, is your professional experience talking. It’s the voice that recognizes headlines omit the fine print—and for a "Business-of-One," the fine print is where catastrophic risks hide.
The flood of generic "digital nomad" content presents a dangerously incomplete picture, treating a significant financial decision as a casual travel choice. This is not a vacation. It is a strategic relocation of your entire business entity, and it demands a proportional level of scrutiny.
A critical point of clarification: this guide is for the country of Georgia, a strategic hub in the Caucasus region at the intersection of Europe and Asia—not the U.S. state. The distinction is crucial for your planning and compliance.
This is not another travel blog cataloging the best cafes in Tbilisi. This is The CEO's Playbook for Georgia. It's a framework designed for the global professional who operates with a CEO mindset. Your concerns are not about finding the cheapest apartment; they are about legal exposure, banking stability, long-term viability, and flawless compliance. This playbook delivers that plan in three phases: a comprehensive due diligence framework to help you rigorously assess the opportunity, execute the operational setup, and proactively mitigate risk. Our goal is to replace compliance anxiety with a confident, actionable strategy, empowering you to decide if establishing a base in Georgia is a defensible and profitable move for your enterprise.
To determine if Georgia is a defensible move, your analysis must begin with a clear-eyed look at the facts on the ground, cutting through the internet noise. A CEO-level assessment requires scrutinizing the legal framework, the true financial upside, and the strategic trade-offs compared to other global hubs. This phase is about building a confident business case, free from hype.
First, let's clarify the entry mechanism. While the official "Remotely from Georgia" application portal has been suspended, this is largely a procedural point. For citizens of over 95 countries—including the US, UK, and all EU member states—Georgia offers a one-year, visa-free stay upon arrival. This policy is the de facto long-stay visa that most global professionals use, making the country one of the most accessible in the world for an extended remote work setup. This straightforward entry removes a significant layer of bureaucratic friction common in other jurisdictions.
The 1% tax rate is the headline, and for good reason. By registering as an Individual Entrepreneur and qualifying for "Small Business Status," you are taxed at just 1% on your annual turnover up to GEL 500,000 (approximately $180,000 USD). Should your turnover exceed that threshold, the rate on the excess income becomes 3%. But a headline is not a balance sheet. To understand your actual net gain, you must model the full financial picture:
For American professionals, this last point is paramount. The United States' citizenship-based taxation system means you must continue to file with the IRS every year, regardless of where you live. The 1% Georgian tax does not negate this obligation. Your strategic decision lies in how you mitigate double taxation, primarily through two tools:
In a low-tax country like Georgia, the FEIE is often the more powerful tool. A 1% tax paid in Georgia provides only a tiny credit via the FTC, leaving a large portion of your income exposed to U.S. taxes. The FEIE, by contrast, can eliminate the U.S. tax liability on the excluded amount entirely. However, qualifying for the FEIE requires meeting strict physical presence or bona fide residence tests, a crucial planning component.
A strategic decision requires context. Benchmarking Georgia against other popular hubs reveals its unique value proposition.
This analysis makes the trade-offs clear. While the UAE offers a zero-tax environment, it comes with a significantly higher cost of living and setup. Portugal provides a clear path to EU residency but with a substantially higher tax burden. Georgia's primary value proposition is its unparalleled combination of an extremely low tax rate, minimal bureaucracy for entry, and a very low cost of operations.
Once you've affirmed the strategic case for Georgia, the focus shifts from analysis to execution. A brilliant strategy is only as good as its implementation, and your first 90 days on the ground are about establishing a firm operational and legal foundation. This phase replaces ambiguity with action, ensuring your "Business-of-One" is compliant and functional from day one.
Gaining the coveted 1% tax rate requires registering as an Individual Entrepreneur and securing "Small Business Status." The process in Georgia is remarkably streamlined and business-friendly. Here is the precise, actionable sequence:
Your business bank account is the engine of your operation. Georgia’s financial sector is modern and welcoming to foreign entrepreneurs. Major banks like TBC Bank and Bank of Georgia are the most common choices, offering robust online banking and English-speaking representatives.
To open your account, you will complete a standard Know Your Customer (KYC) process. Be prepared to provide:
The bank will also ask about the nature of your business, expected transaction volumes, and the source of your funds. Having clear, concise answers ready will expedite the process. Once established, you can easily transfer operating capital from abroad, as Georgian banks use the standard IBAN format.
Peace of mind comes from a simple, repeatable compliance routine. Your primary obligation is the monthly tax declaration. By the 15th of each month, you must log into the Revenue Service portal and declare your gross income from the previous month, paying the corresponding 1% tax. This must be done even if you had zero income.
Digital nomads often underestimate how complex their tax situation can become... A major mistake is failing to track which states or countries they spend time in. This can unintentionally create tax residency in multiple jurisdictions.
By establishing this non-negotiable monthly rhythm, you build the discipline needed to manage your obligations effectively. For U.S. professionals, this diligence is even more critical, as a common error is failing to properly account for self-employment taxes on income, even if that income is excluded from U.S. income tax by the FEIE.
A professional strategy anticipates turbulence. This is where we move from the "how-to" of setup to the "what if" of long-term sustainability. Building a resilient Business-of-One means identifying potential points of failure—legal, financial, and logistical—and proactively creating a playbook to manage them. This isn't pessimism; it's about securing the freedom you've worked to create.
The Individual Entrepreneur (IE) status is fast and tax-efficient, but it comes with a significant trade-off: unlimited personal liability. The IE structure does not create a separate legal entity from you, the owner. If your business incurs debts or faces a lawsuit, your personal assets—savings, property, and other investments—could be at risk. This stands in stark contrast to a Limited Liability Company (LLC), where an owner's liability is generally limited to their investment.
To manage this exposure while operating as an IE in Georgia:
For American professionals, the greatest source of anxiety is often U.S. tax compliance. Let's demystify your two most important obligations while operating from Georgia.
First is the Report of Foreign Bank and Financial Accounts (FBAR), or FinCEN Form 114. This is a report to the Financial Crimes Enforcement Network (FinCEN). If the combined total of all your foreign financial accounts exceeds $10,000 at any point during the calendar year, you must file an FBAR. This is an aggregate amount; if one account briefly hits $11,000 for a single day, the reporting requirement is triggered for all accounts.
Second is your annual U.S. tax return. Your Georgian IE income is reported on Schedule C (Profit or Loss from Business). You will then use Form 2555 to claim the Foreign Earned Income Exclusion (FEIE) to offset your U.S. income tax liability. Remember: this does not eliminate your need to pay U.S. self-employment taxes (Social Security and Medicare) on that income. Diligent reporting is your best defense against costly penalties.
Every strategic plan needs an exit clause. Whether you decide to move, return home, or change your business structure, a clean departure from the Georgian system is essential. An unplanned exit can create lingering tax and legal headaches.
Despite officially reported positive economic indicators, the business environment in Georgia is rapidly deteriorating.
This perspective underscores the importance of having a clear exit plan. Economic and political climates can shift, and a professional is always prepared to adapt.
Your exit playbook should be a simple checklist:
By planning your exit with the same diligence as your entry, you ensure your time in Georgia is a closed, compliant, and successful chapter in your professional story.
With these tactical questions addressed, you can elevate your perspective from the granular details of compliance back to the overarching strategic decision. Relocating your business to Georgia is not a travel choice spurred by online hype; it is a significant strategic pivot that demands professional-grade due diligence. It requires you to think less like a tourist and more like the CEO of your own global enterprise.
Throughout this playbook, we have systematically dismantled the decision into three core pillars: analyzing the opportunity, creating an operational plan, and mitigating risk. This structured approach is what separates a sustainable business strategy from a precarious gamble. It transforms uncertainty and compliance anxiety into a predictable, controllable system.
To crystallize your final decision, consider how this process has equipped you to answer the right questions:
Ultimately, the flood of online content prompts a simple, superficial question: "Is Georgia a cheap place to live?" That was never the right question for you. A professional armed with this framework asks a more precise and powerful question: "Is Georgia a sound, tax-optimized, and legally defensible operational base for my global business?"
You now possess the strategic tools to answer that question with unwavering confidence.
Having lived and worked in over 30 countries, Isabelle is a leading voice on the digital nomad movement. She covers everything from visa strategies and travel hacking to maintaining well-being on the road.
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