What is Georgian Virtual Zone status?

A status for IT companies exporting software services, giving 0% corporate tax on foreign-source income and 5% on distributed dividends. It requires demonstrable IT activity in Georgia.

Can I get the 1% small business regime as a foreigner?

Yes, if you register as an individual entrepreneur in Georgia and qualify by activity type and turnover. It requires personal registration, not just a company.

Is banking in Georgia reliable?

The two main banks are well capitalised and digitally strong, but correspondent access has narrowed. We recommend pairing Georgia with a second banking jurisdiction.

Jurisdiction · Europe

Georgia

Territorial taxation, 1% small-business regime and genuinely fast setup.

Scope a structure here Talk to a director

Overview

Georgia combines a territorial tax system, an Estonian-style deferral on corporate profits and a 1% turnover regime for individual entrepreneurs earning up to GEL 500,000. Company formation takes a day. For solo founders and small trading businesses, few jurisdictions are this efficient this quickly.

The caveats are geopolitical and banking-related. Georgia sits in a contested neighbourhood, and correspondent-banking access has tightened since 2022. Structures here should be sized appropriately and paired with a second banking jurisdiction.

Typical use-cases

Where Georgia fits

Individual entrepreneurs
IT companies
Trading and logistics

Banking

Banking landscape

TBC Bank and Bank of Georgia are the primary institutions, both digitally capable and accustomed to foreign clients. Onboarding has tightened significantly for Russian and CIS-linked applicants; documentation requirements are now substantial. Non-resident individual accounts remain obtainable with in-person visits.

Tax

Tax & reporting

Corporate profits are taxed at 15% only on distribution. Individual entrepreneurs under the small-business status pay 1% of turnover up to GEL 500,000. Virtual Zone status gives IT companies 0% on foreign-sourced income. Personal income tax is 20% flat, and foreign-source personal income is generally untaxed for residents.

Substance

Substance & register visibility

Georgia applies territorial principles to individuals and offers residency by 183 days or through the high-net-worth route. Company registration data is publicly available. Virtual Zone and International Company statuses require genuine activity and are granted by application, not automatically.

Decision

When to pick this jurisdiction

Pick Georgia for a fast, low-cost base for an IT or trading business, for an individual entrepreneur wanting a 1% turnover regime, or as a secondary operational jurisdiction alongside a stronger banking centre.

The director's view

Written up as a comparative shortlist.

Every Georgia recommendation is delivered as a comparative memorandum — substance defensibility, banking access, treaty coverage, register visibility, cost to maintain and reputational risk — so the client can see the trade-offs before committing.

Next step

Considering Georgia? Get a written comparison first.

Answer six questions and a director will come back with a shortlist, indicative costs and banking route.

Scope a structure here Compare jurisdictions

Frequently asked

Questions we hear on every Georgia intake.

What is Georgian Virtual Zone status?: A status for IT companies exporting software services, giving 0% corporate tax on foreign-source income and 5% on distributed dividends. It requires demonstrable IT activity in Georgia.
Can I get the 1% small business regime as a foreigner?: Yes, if you register as an individual entrepreneur in Georgia and qualify by activity type and turnover. It requires personal registration, not just a company.
Is banking in Georgia reliable?: The two main banks are well capitalised and digitally strong, but correspondent access has narrowed. We recommend pairing Georgia with a second banking jurisdiction.

Relevant services