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Freelancer taxes in Georgia (2026)

A freelancer earning €60,000 a year in Georgia keeps between 48,000 EUR and 59,400 EUR depending on the scheme — the best option is "Small Business Status — 1% turnover tax" at an effective burden of 1.0%. 4 schemes below, each computed from official rules.

Verified

Tax schemes

Small Business Status — 1% turnover tax

activeSole proprietor

What you pay

  • Turnover tax (1% / 3%) — progressive on revenue: 1% up to 500,000, 3% above

Eligibility

  • Revenue cap 500,000 GEL/year
  • Activities: software development and most remote digital services
  • Registered Individual Entrepreneur with Small Business Status. Excluded activities (Govt Decree N415) include consulting, legal, medical, audit, licensed and currency activities — software development qualifies, but framing work as 'IT consulting' carries reclassification risk. Can be registered while on a visa-free stay, no residence permit required.

Net income examples

Gross/yearNet/yearBurden
30,000 EUR29,700 EUR1.0%
60,000 EUR59,400 EUR1.0%
120,000 EUR118,800 EUR1.0%

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

No mandatory social or pension contributions for the self-employed (funded pension is a voluntary 4% opt-in). Territorial-tax nuance: freelance work physically performed in Georgia for foreign clients is Georgian-SOURCE income (Tax Code Art. 104) and is taxed here at 1% — the foreign-source exemption (Art. 82.1.u) applies only to passive foreign income or work done while abroad, not to active freelancing done from Georgia. The 3% band is modeled as a simple progressive step (the statute applies it from the month the 500k threshold is crossed). VAT registration is separate and mandatory above 100,000 GEL of taxable supplies. A new 'right to work' regime (from 2026-03-01) may affect foreign-client-only entrepreneurs — official treatment is still being clarified.

Micro Business Status — 0% tax

activeSole proprietor

What you pay

  • Income tax — 0% of revenue

Eligibility

  • Revenue cap 30,000 GEL/year
  • Turnover up to 30,000 GEL/year, no hired employees, inventory balance under 45,000 GEL. Same excluded-activities mechanism as Small Business Status.

Net income examples

Gross/yearNet/yearBurden
30,000 EURover income cap—
60,000 EURover income cap—
120,000 EURover income cap—

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

For very small earners only — the 30,000 GEL (≈ €10,000) ceiling makes this irrelevant to most full-time freelancers, who use Small Business Status instead.

Standard regime — 20% on profit

activeSole proprietor

What you pay

  • Personal income tax (20%) — 20% of profit

Net income examples

Gross/yearNet/yearBurden
30,000 EUR24,000 EUR20.0%
60,000 EUR48,000 EUR20.0%
120,000 EUR96,000 EUR20.0%

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

The fallback for anyone not eligible for or not electing Small Business Status. Almost always worse than the 1% regime for a freelancer, so shown mainly for comparison.

Virtual Zone company — 0% profit + 5% dividend

activeCompany

What you pay

  • Corporate profit tax (exempt on IT exports) — 0% of profit
  • Dividend tax (5%) — 5% of amount left after "Corporate profit tax (exempt on IT exports)"

Eligibility

  • Requires tax residency
  • A Georgian LLC granted Virtual Zone Person status. Profit from IT developed by the company and supplied to clients outside Georgia is exempt from profit tax; only distributed profit is taxed, as a dividend.

Net income examples

Gross/yearNet/yearBurden
30,000 EUR28,500 EUR5.0%
60,000 EUR57,000 EUR5.0%
120,000 EUR114,000 EUR5.0%

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

Company route (LLC), not a bare individual entrepreneur. Assumes all profit distributed as dividends and no salary drawn (a salary would attract 20% wage tax, not modeled). Requires maintaining genuine Virtual Zone substance; the status has faced tightening scrutiny. For most solo freelancers the 1% Small Business Status is simpler and cheaper up to 500,000 GEL.

Try your own numbers

Same engine, your income. For a cross-country comparison use the full calculator.

  1. 1 Small Business Status — 1% turnover tax
    59,400 EURnet/year
    1.0% burden
  2. 2 Virtual Zone company — 0% profit + 5% dividend
    57,000 EURnet/year
    5.0% burden
  3. 3 Standard regime — 20% on profit
    48,000 EURnet/year
    20.0% burden
  4. 4 Micro Business Status — 0% taxover income cap
    60,000 EURnet/year
    0.0% burden