Georgia

Tax advantages

• Personal income tax is a flat 20%, with a 5% rate for dividend income and a 1% rate for micro-businesses.
• Corporate income tax is 15%, but only on distributed profits, allowing tax deferral on retained earnings.
• No wealth tax, inheritance tax, or capital gains tax on securities for individuals.
• Over 50 double taxation treaties provide relief from double taxation and facilitate cross-border transactions.
• No controlled foreign corporation (CFC) rules for individuals, making it attractive for holding passive income.

Tax disadvantages

• Georgia does not have a territorial tax system; worldwide income is taxable for residents, though foreign tax credits are available.
• The 5% dividend tax applies to both domestic and foreign-sourced dividends, which may be higher than in some competing jurisdictions.
• Limited tax incentives for high-net-worth individuals compared to specialized residency-by-investment programs elsewhere.

Residency advantages

• Short-term residency permit can be obtained through property investment (from $100,000) or business registration (minimum $50,000 investment).
• No minimum stay requirement to maintain residency, allowing flexibility for frequent travelers.
• Path to permanent residency after 6 years of temporary residency, and citizenship after 10 years (with language test).
• Visa-free travel to Schengen Area (90/180 days) and many other countries for Georgian passport holders.
• Relatively fast processing times (2-3 months) and straightforward application procedures.

Residency disadvantages

• Residency permits are tied to the investment; if the investment is sold or the business closed, residency may be revoked.
• No dedicated residency-by-investment program with a clear, fast-track path to citizenship.
• Language and cultural barriers may be challenging for long-term integration.
• Limited international banking options and occasional difficulties in opening accounts for non-residents.

Living quality

Life in Georgia offers a unique blend of European and Asian influences, with a rich cultural heritage and a welcoming atmosphere. Tbilisi provides a cosmopolitan lifestyle with modern amenities, including international schools, upscale dining, and a growing arts scene. Safety is a strong point, with low crime rates and a visible police presence in affluent neighborhoods. The climate is continental, with hot summers and mild winters, while the diverse geography allows for skiing in the mountains and beach holidays on the Black Sea coast.

Best for

• Georgia is best suited for entrepreneurs and investors seeking a low-tax environment with a strategic location between Europe and Asia. It appeals to those who value a high quality of life at a moderate cost, and who are comfortable with a civil law system that does not recognize trusts. The country is particularly attractive for digital nomads, small business owners, and individuals looking for a second residence without stringent physical presence requirements.