Why Georgia Country Is One Of The Best Destinations?
Georgia is currently a country to consider for working, performing international business, and even living in. For Digital Nomad, Georgia is one of the most open countries in the World. Georgia has so many advantages to offer in this regard.
- Georgia is a beautiful country with a great culture, a European lifestyle, and low cost and safe.
- Georgia immigration legislation is designed to welcome and speed up foreign digital nomad’s settlement as much as possible.
- The country offers advantageous territorial taxation for Georgia Digital Nomad/
- Incredible tax incentives for Digital Nomads and Digital Entrepreneurs whose clients are located abroad.
- Georgia is well connected with many Big Cities in Europe, the Middle East, and Asia and is easily accessible to Georgia expats.
Tbilisi Is One Of The Best Place For Georgia Digital Nomads And Georgia Digital Entrepreneurs.
Tbilisi, the capital, is one of the sweetest capital-city in Europe where it is good to live and work. The cost of living is meager. The climate is delightful and very similar to the Mediterranean climate. The Bohemian-style capital is charming, and the Georgians are people with a great sense of hospitality, unique gastronomy, and world-class wines. The country also has a breathtaking unspoiled nature. Undoubtedly, you will enjoy working from this country! Like all capital cities, the nightlife is well developed, and the icing on the cake, Georgia is safe.
The Only Territorial Tax System In Europe
Georgia is the only European country with a territorial taxation regime. It means Georgia will tax Georgian residents only their Georgian-source income. Therefore, Georgia does not tax worldwide income. If you have a tax residence in Georgia, Georgia will not tax your rental income, dividends, foreign capital gains, and All your foreign-sourced Passive Incomes.
Georgia Could Be An Exciting Country for Passive Income Owners
- If you receive rental incomes from your real estate properties abroad, Airbnb, for example
- If you are a Digital Nomad and Digital Entrepreneur who sells services and products worldwide
- E-commerce business owners
- Traders and crypto-traders
- Influencers who receive income from the brands they support.
- Royalties owners
The list is non-exhaustive. Thanks to the Georgian territorial regime, your foreign-sourced income will not be taxed. All passive income owners can benefit from this Georgian territorial taxation.
Georgia Digital Nomads & IT Entrepreneurs, You Are Welcome!
Digital Nomad, Perpetual Travelers, Borderless Worker, or Independent Location Worker, Web entrepreneur, E-commerce entrepreneur, IT freelancer, Developer, Online Teacher, Personal coach, or Web Content Creator,…well all individuals related to digital and all business that can be performed from a computer and an Internet connection, Georgia Is One Of The Most Open Countries In The World For a Georgia Digital Nomad and a Georgia Digital entrepreneur.
Digital Nomad Georgia & Georgia Digital Entrepreneur: Staying and Working
Georgia’s progressive immigration policy is just great for a Digital Nomad Georgia. Citizens of 98 countries may stay or work in Georgia for one year without getting any visa or residence permit. You have the right to stay, work, start a business, and live in Georgia for up to one year without special administrative formalities. You can travel in and out of the country. You can buy real estate property without restrictions and enjoy all of Georgia’s advantages.
If you want to check if you’re eligible for the Georgian Free Visa, please get more info and check here.
Georgia Offers An Incredible Tax Regime For Digital Nomad and Digital Entrepreneur: A 1% Tax Rate On Their Income!
If you want to run a business remotely from Georgia, the Small Business Status offers incredible tax advantages.
For a digital nomad and a self-employed individual with or without a foreign source of income, and for anyone operating a sole proprietorship business in Georgia, the Small Business Status is the best option. This status offers the lowest tax rates. 1% tax up to 500,000 GEL of sales and 3% if your annual gross turnover is over 500 000 GEL.
Georgia Digital Nomad, Georgia Digital Entrepreneur, Freelancer, and Individual Entrepreneur, this fantastic Small Business Status is ideal for doing business through your sole proprietorship and working for your clients in or outside Georgia. Ice on the Cake: You don’t have to live in Georgia to benefit from this incredible Small Business Status.
What Else? The Virtual Zone Status Is The Perfect Plan For Georgia Digital Entrepreneurs And Georgia Digital Nomad.
The Virtual Zone status is dedicated to a legal entity, an LLC, offering IT-related services and products. The Virtual Zone status is perfect to benefit from huge tax advantages.
What Is The Virtual Zone Status Exactly?
It is a Free Zone designed for IT businesses. The virtual zone status offers many tax incentives to Georgia Digital Entrepreneur and Georgia Digital Nomad.
According to Article 8 of the Georgian Tax Code, qualified activities are «development, support, design, research development, production, implementation, and deployment of computer information systems and related technologies, the result of which is the emergence of software products and services.»
If your business activity is based on software and software development, for example, you sell e-commerce or Internet marketing software licenses, SaaS (Software as a Service), web development, mobile applications, computer games, web design, and network administration, and all business models where IT services and products are based or related to software can benefit from the Virtual Zone Status.
The only restriction is that IT services and products must be provided to customers outside Georgia. The Virtual Zone status is perfect when the IT company has international customers. If you are a Georgia Digital Entrepreneur or Georgia Digital Nomad with international invoicing, the VZ status is highly attractive.
Benefits of the Virtual Zone For Georgia Digital Nomad & Georgia Digital Entrepreneur.
According to Article 99 of the Georgian Tax Code, a company with this Virtual Zone status benefits from :
- 0% Corporate Income Tax (instead of 15%)
- 0% VAT (instead of 18%) on IT products and services provided outside the territory of Georgia
- 0% Export duties and taxes on IT products and services exported from Georgia. You can also reclaim VAT (18%) when purchasing from other VAT Taxpayers registered in Georgia. Therefore, you will have to register as a VAT Taxpayer at the Revenue Service of Georgia.
- Deduction of expenses related to the provision of IT products and services from gross income
- A company with VZ status does not need a license, permit, or other regulatory documents to conduct business activities on Georgian national territory.
- An IT entrepreneur or a Digital Nomad that provides IT services outside Georgia after obtaining the VZ status will only pay a 5% withholding tax on dividends.
Georgia Is A Great Place To Do Business For Digital Nomads And Digital entrepreneurs
Georgia ranks 8th in the Ease of Doing Business ranking by the World Bank. Georgia provides numerous advantages to doing business in the country and internationally.
- You can set up a local company (LLC) in 24 hours.
- Georgia is among the lowest taxed economies worldwide, standing in the 8th position. Georgia provides many highly beneficial tax incentives for individuals, investors, and companies operating in the country.
- The Standard Corporate Income Taxe is set at 15% and the dividend tax rate at 5%. Both are due only when you distribute profits. All profits reinvested are Tax-Free. These Taxes can be highly optimized (1% to 5%) if properly structured.
- A strong political and cultural commitment to making business easy. In Georgia, you don’t waste time on bureaucracy. Georgia is one of the leading countries with the most simplified bureaucracy required to launch and operate a company.
- Amazing banking. Georgia is one of the best-value international banking destinations.
- Safe Georgia! If you plan to travel, work or live in Georgia, you can feel secure about safety issues. According to the Numbeo report, Georgia is the safest country in Europe and 6th in the World after South Korea, Singapore, Japan, Hong Kong, and Taiwan. Georgians say that a « guest is a gift », so be relaxed and enjoy all the best these people have to offer.
Obtain A Protective Tax Residence In Georgia
The only request to take advantage of a Tax Residence in Georgia is to be physically present in Georgia at least 183 days per fiscal year and therefore be a legal tax resident of Georgia. Consequently, you will benefit from all the protection this tax residence will bring to your assets and provide you with an undeniable financial impact/benefit.