Georgia: 1% Flat Tax, the Digital Nomad's Best-Kept Secret

Georgia is rapidly becoming one of the most popular destinations for digital nomads and freelancers worldwide. The reason? A tax regime at just 1% of turnover, a ridiculously low cost of living, and the ability to stay for a full year without a visa. Tbilisi, the capital, blends ancient architecture, trendy cafes, and fast fiber optic internet. Add exceptional cuisine and wine with 8,000 years of history, and you understand the hype.

In this guide, we cover everything you need to know to settle in Georgia as a freelancer or remote worker. Taxation, visas, banks, cost of living, infrastructure: nothing is left out.

1. Why Georgia Is Attracting Digital Nomads

In recent years, Tbilisi has become a gathering point for remote workers. Several factors explain this trend.

The first is ultra-competitive taxation. With a 1% tax on turnover, Georgia ranks among the most advantageous countries in the world. For a freelancer earning EUR 60,000 per year, that means EUR 600 in annual tax. Hard to beat.

The second is ease of access. Nationals from over 95 countries can stay for one year without a visa. No paperwork, no consular appointment. You land and you stay.

The third is the cost of living. Tbilisi is one of the cheapest capitals in Europe and Asia. A budget of EUR 700 per month is enough to live comfortably. Compare that with Lisbon, Bali, or Bangkok.

Finally, there's the lifestyle. Georgia offers spectacular mountains, generous cuisine (khachapuri, khinkali, churchkhela), and a winemaking tradition stretching back 8,000 years. The culture is warm and welcoming.

2. The Small Business Regime at 1%: How It Works

The Individual Entrepreneur (IE) status with the Small Business regime is the cornerstone of Georgian taxation for freelancers. Here are the rules.

Eligibility Conditions

• Annual turnover below 500,000 GEL (approximately EUR 170,000)
• Be registered as an individual entrepreneur with the Revenue Service of Georgia
• Service and consulting activities are eligible
• No nationality restriction

The Tax Rate

The tax is 1% of gross turnover. Not profit, turnover. This is an important point: you don't need to justify your expenses. Accounting is simplified to the maximum.

Concrete Example

Let's take a freelance developer or designer billing EUR 5,000 per month, or EUR 60,000 per year:

• Annual turnover: EUR 60,000 (~186,000 GEL)
• Small Business tax (1%): EUR 600/year
• Social contributions: no obligation for IEs
• VAT: no VAT below the 100,000 GEL threshold (~EUR 32,000)
• Total tax burden: approximately 1% of turnover

In comparison, the same freelancer would pay between EUR 25,000 and 30,000 in taxes and contributions in France. The savings are massive.

3. Standard 20% Income Tax vs. 1% Regime

Georgia applies a 20% income tax on individuals under the standard regime. Corporate tax is 15% (with an "Estonian" system: tax is only due when profits are distributed).

When to Choose the Standard Regime?

The standard 20% regime applies if:

• Your turnover exceeds 500,000 GEL per year
• You operate in an activity excluded from Small Business (rare)
• You prefer to create a Georgian LLC rather than an IE

When to Choose the 1%?

For the vast majority of freelancers, developers, consultants, designers, and content creators, the 1% regime is the obvious choice. It's simple, cheap, and perfectly legal. The 500,000 GEL threshold (~EUR 170,000) comfortably covers the income of most independents.

Check our ranking of the best countries for freelancers to compare Georgia with other destinations.

4. Visa and Residence: Staying in Georgia

Georgia's visa policy is one of the most open in the world. This is a major asset for digital nomads.

Visa-Free Stay: 1 Year for 95+ Countries

French, Belgian, Swiss, Canadian, and most European nationals can stay in Georgia for up to 365 days without a visa. All you need is a valid passport. No formalities on arrival, no mandatory registration.

When the 365 days expire, simply leave the country (a round trip to Turkey or Armenia, for example) and return to restart the period.

The "Remotely from Georgia" Program

Launched during the pandemic, the "Remotely from Georgia" program allows remote workers to settle in Georgia with a special permit. The conditions:

• Minimum monthly income of USD 2,000
• Work for an employer or clients located outside Georgia
• Valid health insurance

This program facilitates obtaining a long-term residence permit if you wish to settle permanently.

Permanent Residence Permit

For stays beyond one year without doing "visa runs," you can apply for a residence permit. Registering an IE or LLC in Georgia facilitates the process. The cost is approximately 200 GEL (EUR 70) and the processing time is one month.

To compare digital nomad visas worldwide, check our guide on the best digital nomad visas.

5. Cost of Living: Tbilisi, Incredibly Affordable

This is one of the most compelling arguments. Tbilisi is one of the cheapest capitals in the world for remote workers. Here are typical monthly budgets.

Monthly Budget for a Single Person

• Rent (1-2 room apartment, city center): EUR 300-500/month
• Food (groceries + restaurants): EUR 150-250/month
• Transport (metro + Bolt taxis): EUR 30-50/month
• Fiber internet: EUR 10-15/month
• Coworking (Impact Hub, Terminal, Uspace): EUR 80-150/month
• Entertainment and leisure: EUR 100-150/month
• Total: EUR 700-1,100/month

For a couple, expect EUR 1,100-1,600/month. That's 3-4 times cheaper than Paris, and 2 times cheaper than Lisbon or Bangkok.

Quality of Life

Tbilisi isn't just cheap. The city offers excellent restaurants, a lively nightlife, thermal springs (the sulfur baths of Abanotubani), and quick access to the mountains. In winter, the ski resorts of Gudauri and Bakuriani are a 2-hour drive away. In summer, the Black Sea (Batumi) is accessible by overnight train.

Georgian cuisine is a daily delight: khachapuri (cheese bread), khinkali (dumplings), lobio (red beans), all paired with natural wine produced in qvevri (clay jars). The country claims 8,000 years of winemaking tradition.

6. Banks and Financial System

Georgia's banking system is modern and accessible to foreigners. Two banks dominate the market.

Bank of Georgia

The country's largest bank. It offers accounts in GEL, USD, and EUR. The mobile app is modern and well-designed. Account opening is possible with a passport and a local proof of address. Processing time: 1-3 days.

TBC Bank

The country's second largest bank, known for its mobile app and online services. TBC also offers TBC Space, a 100% digital bank suited for freelancers and nomads.

Practical Tips

• Open a GEL account for local expenses and a USD or EUR account for international payments
• Visa and Mastercard cards issued in Georgia work worldwide
• International transfers via Wise or Payoneer are common and straightforward
• The SWIFT system works normally, with no restrictions

7. Internet and Infrastructure

Connectivity is an essential criterion for digital nomads. Good news: Georgia does well here.

Fixed Internet

Fiber optic is available throughout Tbilisi and in major cities. The average speed is 45 Mbps, with plans reaching up to 100 Mbps for EUR 10-15/month. The main providers are Magti, Silknet, and Caucasus Online.

Mobile Internet

4G coverage is strong across the country. 5G is being rolled out in Tbilisi. A SIM card with unlimited data costs about EUR 10/month. The main operators are Magti, Geocell, and Beeline.

Coworking Spaces

Tbilisi has numerous coworking spaces: Impact Hub Tbilisi, Terminal, Uspace, Lokal, and many others. Rates range from EUR 80-150/month for unlimited access. Many cafes also offer fast, free wifi.

To compare with other freelance destinations, check our article on the best countries for freelance expatriation.

8. Pros and Cons

Pros

• 1% flat tax on turnover (Individual Entrepreneur status)
• 1-year visa-free stay for 95+ nationalities
• Cost of living among the lowest in the world (EUR 700/month)
• Company setup in 1-2 days
• Modern and accessible banking system
• Exceptional cuisine and wine
• Mountains, sea, and city in one small country
• Active and growing digital nomad community

Cons

• Not an EU member: no European free movement
• Difficult Georgian language (unique alphabet), though English is improving
• Occasional political instability (pro-EU protests in 2023-2024)
• Basic healthcare system (private insurance recommended, around EUR 30/month)
• Cold winters in Tbilisi (temperatures near 0 °C in January)
• High air pollution in winter in some neighborhoods
• Uneven road infrastructure outside major cities

FAQ

How much tax does a freelancer pay in Georgia?

With Individual Entrepreneur status and the Small Business regime, a freelancer pays 1% of turnover. On EUR 60,000 annual turnover, that's EUR 600 in tax per year. There are no mandatory social contributions.

Do I need a visa to move to Georgia?

No, for most nationalities. French, Belgian, Swiss, and 95+ country nationals can stay up to 365 days without a visa. A valid passport is all you need. For a longer stay, a residence permit is required.

How do I open a bank account in Georgia?

It's simple. Visit a Bank of Georgia or TBC Bank branch with your passport and a local proof of address. The account is opened in 1-3 days. You can have accounts in GEL, EUR, and USD.

Does Georgia have a tax treaty with France?

Yes. France and Georgia have signed a double taxation agreement. This prevents being taxed twice on the same income. Check our Georgia country page for more details.

What is the cost of living in Tbilisi for a digital nomad?

Expect around EUR 700/month for a single person (rent included) and EUR 1,100 for a couple. Tbilisi is 3-4 times cheaper than Paris and 2 times cheaper than Lisbon.