Europe

Georgia Territorial Tax System

Georgia functions like a territorial system for individuals: non-Georgian source income is often exempt, while Georgian-source income is taxed at flat 20%.

Territorial Tax System flag

Regime overview

Status
Active
Type
Default favorable
Established
2010
Duration
Indefinite
Highlight
Foreign-source income exempt for residents
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Tax situation

Territorial Tax System

Eligibility
Residency
Duration
Indefinite
Income Tax
20%
Foreign Income
Usually exempt
Capital Gains
Exempt
Dividends
Exempt
Wealth Tax
None
Inheritance Tax
None

Key benefits

Foreign-source income can be exempt when properly sourced
Flat 20% on Georgian-source income, no progressive brackets
Low-friction structure attractive for founders and mobile professionals

Requirements and considerations

Minimum presence: 183 days/year

Migration pathways

Program details

Georgia's personal tax system is frequently described as territorial in effect, because resident individuals can be exempt from tax on income that does not have a Georgian source.

The baseline rate for Georgian-source personal income is 20%. Capital gains are generally taxed at 20%, with certain transactions taxed at 5%. Dividends sourced to Georgia are typically taxed at 5%.

The key exemption is the treatment of non-Georgian source income: where income is not considered Georgian-source, it can be outside Georgian income tax even for a tax resident. This is the core feature that attracts internationally mobile profiles.

To use the regime in practice, the hard part is classification. Where services are performed, where management decisions are taken, and the taxpayer's residence and treaty position can all affect whether income is Georgian-source. Treat it as a rules-based system, not a blanket exemption, and verify sourcing for the specific fact pattern.

Interested in Territorial Tax System?

Our tax advisors can help you evaluate eligibility requirements and optimize your tax position under this regime.

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Personal income tax rate, capital gains and dividend headline rates

PwC Worldwide Tax Summaries - Georgia (Overview)·Last checked: 13/01/26

Foreign income exemption for resident individuals

PwC Worldwide Tax Summaries - Georgia (Individual)·Last checked: 13/01/26

Treatment of gifts and inheritance as taxable income

Tax Code of Georgia (English translation)·Last checked: 13/01/26

Investment residence permit threshold (USD 300000)

Matsne - Law of Georgia on the Legal Status of Aliens·Last checked: 13/01/26

Short-term property residence permit threshold

Matsne - Law of Georgia on the Legal Status of Aliens·Last checked: 13/01/26

Expert guidance

Optimize your tax position

Our advisors help you evaluate tax regimes, understand eligibility, and structure your move for maximum tax efficiency.

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