How can you move your business to Georgia and save huge money?
How To Move Your Business To Georgia: Totally Or Partially?
Move your business to Georgia and benefit from the incredible advantages this underrated jurisdiction offers you. For those who run their business remotely, Georgia is one of the most open countries in the World. Well-connected with many Big Cities in Europe, Georgia is a beautiful, low-cost, and safe European-style country. Moreover, Georgia has one of the most welcoming immigration policies worldwide. Individual Entrepreneurs, Digital Nomads working remotely will benefit from advantageous territorial taxation and an incredible Small Business Status with a 1% tax rate. Georgia also thought about you IT entrepreneurs: the Virtual Zone status and International Company Status are some of Georgia’s most popular business statuses.
Move Your Business To Georgia Country: One Of The Best Jurisdictions For Remote Workers And Digital Freelancers.
Warren Buffet says, « It is not the most significant companies that run over the smallest, but the most agile ones that overtake the slowest. ».
Following the good advice of Warren Buffet, if you work exclusively remotely and if you can shift very quickly, then you will be able to take benefit from our underrated jurisdiction.
Suppose you are a Web entrepreneur, you own an E-commerce business, or you are a freelancer in the IT field, developer, online teacher, personal online coach, web marketer, or web content creator, …Well, the list could be very long. Still, for all self-employed persons working in a field related to digital or any business and activity you can perform from a computer and an Internet connection, Georgia Country may interest you.
Move Your Business To Georgia And Get The Small Business Status: 1% Tax On Your Income.
For digital nomads, remote workers, and self-employed individuals who plan to run a business from Georgia, the Small Business Status is the best option that offers the lowest tax rates and almost a tax-free regime. 1% tax up to 500,000 GEL turnover and 3% if your annual gross turnover is over 500 000 GEL.
Many Individual Entrepreneurs working remotely, Digital Nomads, Perpetual Travelers, Borderless Workers, or Independent Location Workers love Georgia and move their businesses to Georgia for this reason. Suppose you get the fantastic Small Business Status and run a business remotely from Georgia; it becomes a fun way to make good profits. Ice on the Cake: You don’t have to live in Georgia to benefit from this incredible SBS.
A Unique Territorial Tax Regime In Europe.
What is the Georgian territorial tax regime? It means Georgia will tax Georgian residents only on their Georgian-source income. Therefore, Georgia does not tax worldwide income. Suppose you have foreign-source passive income, like Airbnb incomes, dividends, royalties, traders, and crypto traders, influencers receiving payment from the brands they represent; this income would be tax-free. All foreign-sourced passive income can benefit from Georgian territorial taxation. The list above is, of course, non-exhaustive.
Move Your Business To Georgia: Headache Free.
Working from a foreign country can sometimes be a legal and administrative headache. Problems with obtaining a visa, visa too short, administrative burdens, and long integration depending on the country. In this respect, Georgia is a headache-free country.
One Of The Most Open Countries In The World.
When you move your business to Georgia Country, you will understand how this country has put in force one of the most progressive immigration policy in the World. Citizens from about a hundred countries can live in the country without a visa for one year. You have the right to work, start a business quickly, buy an apartment, and enjoy all of Georgia’s advantages immediately.
One Of The Cheapest.
According to several living cost surveys, Georgia and Tbilisi are among the World’s top 10 most inexpensive cities. Tbilisi, the capital city, is full of charms, and the Georgians are famous for their sense of hospitality, outstanding gastronomy, and world-class wines. With a pleasant way of life, low-cost living, and a lovely Mediterranean climate, living and working in Tbilisi is sweet. You will enjoy moving your business to Georgia!
One Of The Safest.
Tbilisi is a European lifestyle and modern town. The nightlife is well-developed, and the icing on the cake, Georgia is one of the safest countries globally, along with South Korea, Singapore, Japan, Hong Kong, and Taiwan.
Move Your Business To Georgia Partially.
Suppose you’re not working 100% remotely or already have your business established and well-developed in your country. In that case, you can think that moving business to Georgia could be not so easy compared to a freelancer working alone (see above). However, suppose you still want to benefit from the low-cost Georgian tax regime, then you can move your business to Georgia partially: only some clients or services. By doing so and operating a part of your business in Georgia, you will discover all the benefits of doing business in Georgia. Then you can plan your shift on a large scale later.
Corporate taxation in Georgia Country is one of the lowest corporate tax regimes globally. Georgia provides highly corporate tax incentives for investors and companies operating in the country. Moreover, Georgia simplified business start-ups and all administrative procedures making Georgia an incredibly welcoming and business-friendly environment. Easy to set up, easy to start a business, with a minimum of bureaucracy and a simplified and smooth accountancy system, these are the advantages of Georgia’s dynamic and liberal economy, making this country full of opportunities for entrepreneurs who choose to move your business to Georgia, partially or totally at some point.
Please get in touch with us if you need to analyze whether it would be smart to move your business to Georgia partially. Our consultant and Happy Georgia will support this analysis and all process stages.
If You Are In The IT Industry, Moving Your Business To Georgia Will Be Your Best Move.
Georgian tax legislation is one of the most friendly globally, with IT firms registered in Georgia. Georgia offers multiple tax benefits. You can enjoy various tax incentives/exemptions. Two special/beneficial tax regimes are applicable for IT companies: Virtual Zone status and International company status.
The Virtual Zone.
Tax exemption for IT companies in Virtual Zone is a wonderful status. It applies to certain types of IT activities. The precondition for qualifying under VZ status is performing such IT activities from Georgia for foreign clients, resulting in the software products (e.g., software, mobile application…) being created.
Definition Of Virtual Zone: Article 8 Of Georgian Tax Code.
A virtual zone is a legal person engaged in IT activities. Information Technologies (IT) – studying, supporting, developing, designing, producing, and introducing computer information systems from which software products are obtained (created).
Tax Benefits For Virtual Zone In Georgia: Article 99 Of Georgian Tax Code.
Profit (it is more correct to say “distribution of profit,” as Georgia has a tax system that does not tax retained profits but only profits when distribution occurs) earned from the supply of information technologies outside Georgia developed by a legal entity of a virtual zone.
- 0% Corporate Income Tax on the profit earned from providing certain IT services to foreign clients (instead of 15%);
- 0% VAT on services provided to foreign clients (instead of 18%)
Please get in touch with us if you need to analyze if your company qualifies under Virtual Zone status. Our consultant and Happy Georgia will support you in all process stages.
The International Company Status.
Tax benefits for Georgian entities granted the International Company Status have been recently introduced in the Georgian tax legislation (2021). Such status, providing multiple tax incentives and exemptions, applies to IT companies and a quite long list of IT services (but different from Virtual Zone ones).
Tax benefits for an International company registered in Georgia apply to much more IT services than Virtual Zone’s ones. You can check here the activities qualified under the tax exemptions/incentives granted for ICS.
Suppose you want to move your back office to Georgia, your customer service, or any tasks that can be done remotely. In that case, this International Company Status provides highly profitable tax incentives. You can have access to a skilled workforce while making huge savings thanks to the International Company status.
Tax benefits for International Company Status in Georgia Country.
- 5% CIT (instead of 15%)
- 0% Dividend tax (instead of 5%)
- 5% Salary tax (instead of 20%)
- 0% property tax (instead of 1%)
- An IC can decrease the base of CIT with expenses paid to Georgian resident employees and R&D expenses.
Main Requirements To Obtain The International Company Status.
Suppose a company wants to obtain IC status. In that case, this company shall demonstrate at least 2 years of experience in the IT field (the 2 years of experience of a parent company works). In addition, business substance in Georgia i.e., actual accumulated expenditures, staff hired, office rented, utility bills, among others, should be demonstrated.
Please contact us if you need to analyze your specific situation if you plan to qualify your company under the International Company Status. Our consultant and Happy Georgia will support you in all process stages..
Move Your Business To Georgia, Partially Or Totally? Conclusion.
Georgia can be an excellent starting point for a new way of looking at your current business or starting a new business. By transferring all or part of your business to Georgia and structuring it properly, the business activity you conduct from Georgia will be subject to low taxes, especially if you are in the IT field. Properly structured, your international business, based on revenues derived from your foreign clients, will be able to generate significant profits.
Happy Georgia works for your freedom, don’t hesitate to contact one of our business consultants for more information.
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