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A plain-language breakdown of how it actually works, who qualifies, and what it costs.
Georgia's Small Business Status is a real, government-administered tax regime, not an offshore trick or a loophole. This page explains exactly how the 1% rate works, who it's for, and what registering actually involves, independent of any one provider's pitch.
An Individual Entrepreneur (IE) registered in Georgia can apply for Small Business Status, which taxes turnover, not profit, at a flat 1% up to an annual threshold set by the Georgian Revenue Service. Turnover above that threshold is taxed at 3%. Because it's based on turnover rather than profit, there's no need to track deductible expenses the way a profit-tax system requires; the calculation is simple and predictable.
This is different from many "low-tax" jurisdictions that rely on complex holding structures or opacity. Georgia's system is straightforward, publicly documented tax law.
Most service-based, consulting, software, and e-commerce activities are eligible. Some regulated or licensed professions (certain financial services, for example) are excluded or have separate rules. Eligibility also depends on staying within the turnover threshold and on the individual's own citizenship and tax-residency obligations, which vary by country and are worth checking with a qualified advisor in your home jurisdiction.
Top marginal tax rates for business owners across major European economies commonly sit between roughly 40% and 55%. Georgia's 1% rate (up to the eligible threshold) is structurally different: it's flat and turnover-based rather than progressive and profit-based, which is the main reason the effective difference is so large for founders below the threshold.
The process runs entirely under a Power of Attorney, so physical presence in Georgia isn't required:
A fully remote setup typically starts around $1,500 one-time, plus a separate fee (commonly around $350) for notarized Power of Attorney handling. In-person setups in Tbilisi, with additional services like airport pickup, translation, or ongoing coordination, are priced higher. Ongoing monthly accounting and tax filings are usually a separate add-on, not included in the base registration fee.
A Georgian IE can invoice and work with clients anywhere in the world. Business accounts commonly support multiple currencies (USD, GBP, EUR, Georgian Lari). Georgia's territorial tax system generally means foreign-sourced income isn't taxed again locally beyond the Small Business Status rate, though this doesn't override tax obligations in the entrepreneur's own country of residence or citizenship, which should be checked independently.
No. Registration and the ongoing tax status don't require physical residence. Everything can be completed remotely under a Power of Attorney. Some entrepreneurs separately choose to apply for Georgian residency, but it isn't required just to hold Small Business Status.
It's standard, documented Georgian tax law, publicly administered by the Revenue Service, not an offshore trick or grey-area structure.
Turnover above the annual threshold set by the Revenue Service is taxed at 3% instead of 1%. It doesn't disqualify the whole year's income from the lower rate, only the portion above the threshold.
Not automatically. Georgian tax status governs what's owed in Georgia. Whether and how it interacts with your home country's tax residency rules depends entirely on your individual citizenship and residency situation, and is worth confirming with a qualified advisor there.
If this fits your situation, ExitBase handles the full registration, tax status application, and banking setup remotely, typically within about 7 days from submitted documents.