How to start a company in Georgia and pay 1% tax

Today, I want to share my experience with starting a company in Georgia (Individual entrepreneur). It's a great way to pay just 1% income tax if you're a freelancer, digital nomad or remote worker. Georgia has very liberal tax regimes that allow you to pay from 0% to 3% income tax as a foreigner.
In the video I describe what type of companies you can open here and what tax regimes exist.
In the end, as bonus, I added a video guide about how to send tax declaration and pay taxes online.

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Links for the video:

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00:00 Intro
00:28 Disclaimer
00:42 Type of companies and taxes in Georgia
03:23 Process of opening a bank account and a company in Georgia
07:08 BONUS: How to send tax declaration online in Georgia
09:00 BONUS: How to pay taxes online in Georgia

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Where else to find me:

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#georgia #openacompany #taxes

[dpashutskii]

I hope you find this video helpful.

I tried experimenting with b-rolls throughout the video. Let me know if the watching is more engaging with them or no :)

[natrixvisuals]

Thank you for the video - it was really helpful

[ItsRobertWojcieszek]

That was very helpful to me. Thank you Dmitri 🙏

[valentinamilovanovic]

Your videos are super useful! Thank you!!!

[ovidiuandrei]

Hi. First of all, nice video. I have several additional questions: 
1. Besides the 1% turnover tax, do you need to pay social security and health insurance ? If so, how much ?
2. Do I need to translate all my contracts and invoices issued to my clients also to Georgian language ? I'm currenlty using English for all my invoices.
Thank you and keep up the good work!

[boisehingis]

Great insights. I plan to open bank account, remote worker company as well, administration offices efficiency equal between tbilisi batumi, or the capital is the only option to get bureaucracy done?

[Jeanfilme]

Hey Dimitri, thanks for the video, very insightful.

How does the invoicing look like when your individual company is se in Georgia and you work as a freelancer for EU based companies (in Germany or France)? Are you aware of any limitation/issue due to the fact that the company and bank account are Georgian? Or is it very easy to sell your services to these countries?

Thanks in advance!

[AhmedSahyouni]

Such a great video!
I have some questions please:

1. Do I need a personal or Business Bank account?
2. What if my income varies from month to month, can I pay a different tax each month?
3. Can I make a transfer from my BoG to TBC and count it as income? or should the income be sent exclusively by my client ?

[patrick]

Which program you using for your invoices for your costumers? What's about bookkeeping?

[daniellefrancisco]

Quick question. How much is the total in cost to open a small business/freelancer there?

Do you get taxed at 1% and 20% income tax at the same time?

1% business tax
20% income tax as an employee of your small business.

Thanks in advance

[hakandilek]

Dmitri thanks for the video, for the IE 1% level, will I need contract with the businesses I freelance for?

[ZainKhan-zodl]

There are two case scenario : 1. Im working in dubai and have a two year validity residence permit

2. My passport is Indian

Keeping these two things in mind, what should be the convinient way to move to Georgia as a freelancer.

I am working in the blockchain industry and usually received payments in UsDT.

[meditaciones_conectar]

Hi Dmitrii! At first, did you stay in an Airbnb? And later, did you look for something more permanent to rent? Or, how did you go about finding a landlord who allowed you to use his address?

[gregduboisYT]

Thank you for the great video. I have a question about receiving international payments from clients. Do they pay you directly into your TBC account? Do you ever have any problems with this? thanks again

[ahmedl]

Thanks for the video! Did you use a personal bank account or a business account to receive money for your services and pay taxes in Georgia? You simply withdraw the money (minus company tax 1%) to your personal spending account? Personal bank accounts are a bit cheaper that's why I am asking.

[massajosue]

Thank you for the video! What were the requirements for you (Visa) so you were able to rent an apartment? So is it possible to go with a tourist visa until you have everything figured out then open the company and register for short term residency or did you totally move to Georgia on the longterm?

[deanw]

Great video！
i have some questions want to know:
1.As the owner of an ie company, can I apply for work residency for myself or my employees? When I reach the standard of 50, 000 lari?
2.Can an IE type company purchase insurance for its employees?
3.When IE's annual turnover exceeds the standard, can I apply to convert it into an LLC?

[samuelhaede]

Great Video Dmitrii and very interesting taxation system in Georgia! I am just wondering how much social security you need to pay monthly? And is there any minimum requirement of days you need to stay in Georgia? Best, Sam

[sebbyvee]

Hey Dmitrii, I understand you're not a tax advisor but just want your thoughts. What would your advice be for someone who wants to live in a country such as France, but wants to pay low taxes in business. France taxes on world wide PERSONAL income. For example, You start a US LLC, Your Georgian company owns the US LLC, all income passes from the US to the Georgian company. You pay taxes on the total income to the Georgian company. Correct?

If you think there is a better situation let me know your thoughts

[MrsPaulinaBell]

Hey, thanks for this info. I want to open my businnes as a freelancer fully online. I know it's possible in Georgia to open company. But I have a problem with the resident address. Do you know the other options for the legal resident address? Like virtual offices or to rent small place online and stuff like that?