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Georgia small-business status: when the turnover regime may apply

Check whether eligible activity can use the turnover-based regime.

All insights3 min read · Reviewed October 26, 2026
Georgia: international living and wealth planning

Individual entrepreneur and small-business status

Georgia's small-business status is a specific regime for eligible individual entrepreneurs. It is not a general low tax rate for every expatriate, employee or company. Turnover, activity exclusions and registration conditions need checking before the headline is used in a comparison.

Income source is a separate question. Work physically performed in Georgia can be Georgian-source even where the client and receiving account are abroad. Compare turnover tax with the actual commercial activity, costs and departure-country obligations.

Country facts to keep in view

Personal income tax
20%; genuine foreign-source income exemptRemote work performed in Georgia is not automatically foreign-source. Special small-business status has its own rules.
Company tax
15% on qualifying distributionsGenerally a distributed-profit model, including certain deemed distributions. Financial-sector rules differ.
Dividend tax
5% domestic; foreign-source generally exemptSource classification and any overseas withholding matter.
Underlying country facts checked 2026-10-06. Headlines describe destination-side rules; personal eligibility and source-country tax need review.

A situation worth reviewing

A consultant working from Tbilisi for overseas clients should first establish whether the activity is eligible and where the work is performed. Payment from a foreign company does not on its own turn the fee into exempt foreign-source income.

For UK assets and UK connections

A retained UK company and an individual Georgian business are separate taxpayers. Do not apply the small-business rate to UK company profits by reference to the shareholder's new home. Establish the UK departure position and examine where the company is managed and where services are performed. Document the actual arrangement before changing contracts.

For US persons

US citizenship generally keeps worldwide-income reporting in scope. Georgian registration and a low local charge do not resolve the US treatment of self-employment, foreign entities or retained accounts. The US-Georgia framework is the older US-USSR treaty, not the modern UK-US convention. Ask for coordinated advice before selecting a legal form.

Before changing an arrangement

Confirm the activity eligibility, registration and record-keeping requirements with the Revenue Service. Separately assess the 2026 labour-migration framework and its stated exclusions. Permission to enter, the right to work and small-business tax status are distinct. A low headline rate is useful only if the actual business qualifies and remains workable.

YOUR EXISTING ASSETS

How could your accounts fit?

Open the accounts you hold. These are starting points for a review, with the conditions and evidence attached to each finding.

UK accounts

UK ISA! Review / opportunity

An ISA may work without another wrapper

The UK ISA relief can remain, while Georgia applies its foreign-source-income rules independently.

Confirm the source of each investment return and nonresident contribution restrictions. The official English code consolidation is being updated, so current Georgian text must be checked before action.

Worth exploring: Review retaining the account before restructuring.

Ask a planner: Would retaining the ISA meet both current and future needs?

Sources & conditions

Checked 2026-10-19. Conditions apply; no personal eligibility decision.

HMRC: ISAs when moving abroadIf you move abroad: retaining relief, contribution restrictions and return to the UK · checked 2026-10-19
Georgia: Tax CodeArticles 82(1)(u) and 104: resident foreign-source exemption and Georgian-source income; consolidation through 30 September 2026 · checked 2026-10-19
General investment account! Review / opportunity

Verify source before replacing the portfolio

Georgia exempts qualifying non-Georgian-source income and gains of resident individuals.

The underlying asset and transaction must support that classification. Account location alone is insufficient; confirm current legislation and retained UK obligations before disposal.

Worth exploring: Compare keeping the portfolio with the fees of any alternative.

Ask a planner: Would the existing portfolio already qualify locally?

Sources & conditions

Checked 2026-10-19. Conditions apply; no personal eligibility decision.

Georgia: Tax CodeArticles 82(1)(u) and 104: resident foreign-source exemption and Georgian-source income; consolidation through 30 September 2026 · checked 2026-10-19
UK-Georgia treaty, amended by 2010 ProtocolArticles 4, 5, 7, 10, 11, 13, 17 and 18: residence, business, investments and pensions · checked 2026-10-19
Offshore investment bond! Review / opportunity

Assess whether this policy still adds value

A foreign policy may already hold foreign assets, but its local classification still needs confirmation.

Compare the policy expense and access terms with holding investments directly. Foreign-source relief is not itself evidence that the insurance wrapper creates an extra saving.

Worth exploring: Compare the existing bond with a simpler portfolio.

Ask a planner: Does the policy offer a benefit after its costs?

Sources & conditions

Checked 2026-10-19. Conditions apply; no personal eligibility decision.

Georgia: Tax CodeArticles 82(1)(u) and 104: resident foreign-source exemption and Georgian-source income; consolidation through 30 September 2026 · checked 2026-10-19
HMRC: foreign life policy gainsHS321: foreign policy chargeable-event gains and reliefs · checked 2026-10-19
HMRC: policy gains during non-residenceIPTM3734: gains arising during a period of non-UK residence · checked 2026-10-19
UK operating business! High priority

A UK company is not Georgia small-business status

Work performed from Georgia and company management need review even where customers pay from abroad.

The small-business regime applies to eligible registered individual entrepreneurs, not automatically to UK company profits. Article 104 treats locally delivered services as Georgian-source in relevant cases.

Worth exploring: Review the operating model and eligibility before claiming a small-business rate.

Ask a planner: Am I trading personally, operating a company, or both?

Sources & conditions

Checked 2026-10-19. Conditions apply; no personal eligibility decision.

Georgia: Tax CodeArticles 82(1)(u) and 104: resident foreign-source exemption and Georgian-source income; consolidation through 30 September 2026 · checked 2026-10-19
HMRC: company management and controlINTM120060: central management and control case-law rule · checked 2026-10-19
UK-Georgia treaty, amended by 2010 ProtocolArticles 4, 5, 7, 10, 11, 13, 17 and 18: residence, business, investments and pensions · checked 2026-10-19

US accounts

US brokerage account! Review / opportunity

Local foreign-source relief is only one layer

A US taxpayer may still owe US investment tax even when qualifying returns are exempt in Georgia.

Check fund domicile, basis and withholding. A Georgian broker or foreign pooled fund does not by itself improve the US result and can add PFIC review.

Worth exploring: Review keeping the existing portfolio before buying local alternatives.

Ask a planner: Which investments fit both systems?

Sources & conditions

Checked 2026-10-19. Conditions apply; no personal eligibility decision.

Georgia: Tax CodeArticles 82(1)(u) and 104: resident foreign-source exemption and Georgian-source income; consolidation through 30 September 2026 · checked 2026-10-19
IRS: US taxpayers abroadWorldwide income; filing requirements and additional international reporting · checked 2026-10-19
IRS: Form 8621 instructionsWho Must File; Section 1291 Fund; QEF and mark-to-market elections; Exceptions To Filing Part I · checked 2026-10-19
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BRING THESE QUESTIONS

Make the conversation useful.

  • Does my activity qualify for Georgian small-business status and how is its source determined?
  • Which of my pension and investment receipts are genuinely foreign-source after moving to Georgia?
  • What would change if I moved again or returned home?

YOUR NEXT STEP

What would this mean for you?

Discuss your Georgia plans, existing assets and cross-border tax questions with an International Wealth Planner.

Speak to a wealth planner about thisUS$1.5m+ investable wealth or US$50k+ monthly income. Initial eligibility and service availability apply.
Sources, dates and scope

Published 2026-10-19; editorial review 2026-10-26. The country fact check date is shown beside the facts. General education from an unregulated publisher and introducer. This article does not determine suitability or provide personal financial, tax or legal advice.

Revenue Service: preferential tax regimesDividend taxLiving in GeorgiaEntry and insurance requirementsPersonal income taxCompany taxUK residence and foreign incomeUS citizens and resident aliens abroadIRS Form 8621 and PFIC reportingGeorgia MFA: entry informationState Services Development Agency: residence permitsMatsne: Law on Labour MigrationMatsne: Georgian Tax CodeRevenue Service: small-business applicationHMRC: UK-Georgia treatyIRS: Georgia treaty documentsHMRC: ISAs abroadIRS: foreign trustsFCDO: Georgia safetyGeorgia MFA: tourist health and accident insuranceFCDO: Georgia healthcareNational Bank of Georgia: service comparisonRevenue Service: electronic servicesCellfie: subscriber agreementIRS: foreign account reportingOur editorial standards