Caucasus Ref. GE-01
Georgia
One year of visa-free stay, and a territorial tax basis at the end of it.
Illustrative image — AI-generated, not a photograph of the actual location
Overview
One year of visa-free stay, and a territorial tax basis at the end of it.
Georgia is the lowest-cost entry point in this index, and the one most often misunderstood. The distinguishing feature is the combination of a 365-day visa-free stay for citizens of many countries and a territorial tax basis for individuals, which together mean that a person can live in Georgia for a year while foreign-source income stays outside the Georgian net.
Small Business Status — a registration allowing a 1% rate on qualifying turnover up to a statutory ceiling — is the mechanism most freelancers and consultants use. It has conditions: the activity must be permitted, there is a turnover cap, and certain professional services are excluded or restricted. It is not a general 1% tax rate on all income.
The critical distinction is between the right to remain and the status of being tax resident. A 365-day visa-free stay does not make you a tax resident, and becoming tax resident does not automatically grant a residence permit. People routinely conflate the two and end up either tax-resident somewhere they cannot legally stay, or legally resident somewhere they are tax-resident in a way they did not intend.
The second consideration is geopolitical. Georgia's proximity to Russia and its unresolved territorial disputes are a genuine risk factor for a long-term base, independent of how favourable the tax code is. A plan built on Georgia should have a defined exit condition.
How it scores
Editorial scores, 1–5, on a consistent basis across the index. 5 is favourable (low tax, strong mobility, fast, cheap, low presence). They are a comparison aid, not a recommendation, and they weight nothing — that is what the finder does.
Routes currently available
Timelines are indicative ranges for a complete, well-documented application and are frequently extended by administrative backlog. They are not guarantees.
Tax position
How Georgia taxes you
Georgia taxes individuals on a territorial basis: foreign-source income is generally not taxed, while Georgian-source income is taxed at 20%. Small Business Status offers 1% on qualifying turnover below a statutory ceiling, subject to activity restrictions. Tax residency is triggered by 183 days of presence or other defined tests, and is separate from immigration status.
What works
Strengths
- 365-day visa-free stay for many Western nationalities — unusually long and renewable.
- Territorial tax basis for individuals: foreign-source income generally outside the net.
- Very low cost of living and of professional services relative to Western Europe.
- Fast, low-cost company formation and business banking for residents.
What to watch
Risks and caveats
- Small Business Status has a turnover ceiling and activity restrictions — it is not a flat 1% on everything.
- Visa-free stay and tax residency are separate; conflating them is the most common error made here.
- Regional geopolitical risk is material and should be treated as a defined exit condition, not a background concern.
- Banking access for non-residents has tightened; do not assume an account will be available before you arrive.
Compare
Other jurisdictions in the index.
PTPortugal
Narrowed golden-visa routes after 2023 — funds and income pathways remain.
PAPanama
Territorial taxation and a USD economy — the classic offshore base.
AEUnited Arab Emirates
No personal income tax; 9% corporate tax above the threshold.
Next step
Is Georgia actually open to you?
Eligibility depends on your citizenship, income sources, family structure and timeline. An assessment tells you whether Georgia is viable for your situation — and which routes are closed.