Company taxation in Georgia: LLC, International Company and special zones
The 15% tax on distributed profit, 5% on dividends, and the International Company, Virtual Zone and Free Industrial Zone regimes.
Last verified 2026-10-20Next review 2027-01-207 official sources
Whether Georgia works for you depends on how you earnTalk it through
A Georgian company, such as a limited liability company (LLC), pays 15% profit tax only when it distributes profit, grossed up so the effective cost is 15/85 of the net amount paid. Profit kept in the company is not taxed. Dividends to individuals then bear 5% withholding tax. International Company status, the Virtual Zone and Free Industrial Zones change these rules for certain activities.
The standard regime: tax on distribution
Georgia taxes most companies when they pay out profit. This is often called the "Estonian model". The rules are in Arts. 97 and 98 of the Tax Code.
- The object of profit tax is distributed profit, plus non-business expenses, free supplies and representation costs above the allowed limit (Art. 97(1)).
- The rate is 15% (Art. 98(1)).
- The rate applies to the grossed-up amount: the payment divided by 0.85 (Art. 97(10)).
- Retained profit is not taxed.
A worked example
A company pays a dividend of GEL 85,000 to its owner, an individual.
| Step | Amount | Rule |
|---|---|---|
| Dividend paid | GEL 85,000 | |
| Grossed-up amount (85,000 ÷ 0.85) | GEL 100,000 | Art. 97(10) |
| Profit tax paid by the company (15% of GEL 100,000) | GEL 15,000 | Art. 98(1) |
| Dividend tax withheld (5% of GEL 85,000) | GEL 4,250 | Art. 130(1) |
| Net to the owner | GEL 80,750 |
Dividends taxed at source are not added to the individual's gross income and are not taxed again (Art. 130(3)). Dividends paid to another Georgian company are not taxed at source (Art. 130(2)).
Exceptions to the 15% rule
Banks, credit unions, microfinance organisations and loan providers pay 20% on annual taxable profit, not on distribution (Arts. 97(12), 98(4)). Gambling businesses have their own rates (Art. 98(5) to (6)).
Companies also pay property tax of up to 1% of the average annual net book value of their property (Art. 202(1)).
International Company status
Art. 23 of the Tax Code creates International Company status. The Government grants it to a Georgian company that carries out only activities listed in a Government ordinance.
| Item | International Company | Tax Code |
|---|---|---|
| Profit tax | 5%, grossed up by dividing by 0.95 | Art. 23(10) to (11) |
| Tax on employee salaries | 5% | Art. 23(7) |
| Dividends | Not taxed at source | Art. 23(8) |
| Property tax | Exempt (except land) for property used in permitted activities | Art. 23(13) |
| Location | Cannot be set up in a Free Industrial Zone | Art. 23(4) |
| Loss of status | Any activity outside the list cancels the status from 1 January of that year | Art. 23(3) |
According to Andersen and Expathub, the ordinance is Government Resolution No 619 of 8 October 2020. It lists IT and digital activities and some maritime activities, and adds substance requirements.
The status also matters for immigration. Companies with International Company status are exempt from the labour-market test that applies when an employer hires a foreigner (Decree 70, Art. 5). The employee still needs the right to work. See the work permit.
What is not yet established. We have not read Resolution No 619 in its official form. The current list of permitted activities and the substance requirements come from secondary sources only.
Virtual Zone Person
A Virtual Zone Person is "a legal person engaged in IT activities and holding an appropriate status" (Art. 8(35)). It is exempt from profit tax on profit "earned from the supply of information technologies outside Georgia developed by a legal entity of a virtual zone" (Art. 99(1)(p)). The status still exists in the current Tax Code. According to Expathub, the Revenue Service issued a new methodical instruction on Virtual Zone taxation on 29 December 2022.
Dividends from a Virtual Zone company. We found no specific exemption for dividends a Virtual Zone company pays to individuals. Under the general rule they would bear 5% withholding, but we have not confirmed this.
Free Industrial Zones
A Free Industrial Zone (FIZ) enterprise is a company set up under the Law on Free Industrial Zones (Tax Code Art. 25).
- Goods it supplies into the rest of Georgia bear a 4% levy on revenue (Art. 25(2)). Goods supplied into a FIZ from Georgia also bear 4% (Art. 25(3)).
- It generally cannot buy services from, or sell services to, Georgian persons outside the zone, with listed exceptions (Art. 25(5)).
- Dividends and interest it pays are not taxed at source (Arts. 130(7), 131(9)).
FIZ profit tax. A profit tax exemption for FIZ enterprises is commonly reported. We did not find the provision in Art. 99 of the Tax Code, so we cannot confirm it.
A Special Trading Company (Art. 24^1) is another narrow regime. It gives a profit tax exemption for re-exporting foreign goods from customs warehouses, under tight limits.
Company or individual entrepreneur
An individual entrepreneur with small business status pays 1% of turnover up to GEL 500,000 a year. A company pays nothing while it keeps profit, and 15% grossed up plus 5% on dividends when it pays out. Which costs less depends on your turnover, your costs and how much you take out. See individual entrepreneur and small business status.
Your personal tax residency is a separate question from the company's tax position. Dividends from a Georgian company are Georgian-source income, so the foreign income exemption does not cover them. See foreign income and Georgian tax.
A company does not give you a residence permit
Registering an LLC is a business step. Since 1 March 2026, a work residence permit requires the right to work. The application also needs a Revenue Service document showing the founded company's annual turnover is at least GEL 50,000 per foreign applicant. A company no more than 3 months old, with no more than 3 foreign employees and getting its first work permit, is exempt from the turnover proof, and the permit is then issued for 6 months. See the business residence permit.
Tax Code version. This page uses the English Tax Code consolidated to 15 October 2026. We have not checked whether the amendment of 15 October 2026 (Law No 1888-VIმს-XIმპ) changes Arts. 23, 97, 98 or 130.
Common questions
- What is the corporate tax rate in Georgia?
- Most companies pay 15% profit tax, but only when they distribute profit (Tax Code Art. 98(1)). The tax is applied to the payment divided by 0.85 (Art. 97(10)), so a net dividend of GEL 85,000 bears GEL 15,000 of profit tax. Retained profit is not taxed. Banks and some lenders pay 20% on annual profit instead.
- How are dividends from a Georgian company taxed?
- Dividends paid to individuals bear 5% withholding tax (Art. 130(1)), on top of the profit tax paid by the company. Dividends paid to Georgian companies are not taxed at source (Art. 130(2)). International Company dividends are not taxed (Art. 23(8)).
- What is International Company status in Georgia?
- A status the Government grants to a Georgian company that carries out only activities on a Government list. It gives 5% profit tax, 5% tax on employee salaries and no tax on dividends (Tax Code Art. 23). Any activity outside the list cancels the status from 1 January of that year.
- Does setting up a company in Georgia give me a residence permit?
- No. Since 1 March 2026, a work residence permit requires the right to work, and the founded company must show annual turnover of at least GEL 50,000 per foreign applicant, with some exceptions. Registering a company alone is not enough.
Whether Georgia works for you depends on how you earn
Where you live is only half of it. We can walk through your position with you, including the cases where Georgian tax residency does not give the result people expect. This is general information, not tax advice for your circumstances.
Sources
Every legal, fee and procedural statement on this page is taken from the sources below and was checked on 2026-10-20. Where they change, this page changes.
- Tax Code of Georgia (Legislative Herald of Georgia) — Tax residency, income tax, exemptions and small business status
- Andersen Georgia: tax incentives for IT companies — International Company status under Government Resolution No 619 of 8 October 2020
- Expathub: International Company status in Georgia — Activities and substance requirements for International Company status
- Expathub: Virtual Zone companies in 2023 — Revenue Service methodical instruction on Virtual Zone taxation of 29 December 2022
- Government Ordinance No 70 of 20 February 2026 on the right to work (Georgian) — Labour-market test exemption for International Company status holders, Art. 5
- Government Ordinance No 146 of 2 April 2026 amending Ordinance 520 (Georgian) — Work residence permit documents, including GEL 50,000 turnover per foreign applicant
- Government Ordinance No 317 of 9 July 2026 (Georgian) — Turnover proof exemption for new companies
Related
This page is general information about Georgian rules as published by the authorities named above. It is not legal or tax advice for your circumstances, and immigration outcomes depend on your nationality, documents and individual case. See our legal and tax information disclaimer.