Personal Income Tax in Georgia: The Applicable Regime in 2026

Georgia applies territorial taxation: both residents and non-residents are taxed only on their Georgian-source income. This rule is a significant advantage for expatriates who retain income in their home country.

Tax Residence

A natural person is considered a Georgian tax resident if they are physically present in Georgia for 183 days or more during any 12 consecutive months ending in the relevant tax year. Georgian officials posted abroad are also considered residents.

Income Tax Structure

The tax base consists of gross Georgian income, reduced by authorised deductions. It includes:

• Employment income (salaries, wages, benefits in kind)

• Self-employment income

• Capital gains on disposal of assets

• Dividends and interest (except those from bank deposits)

• Royalties

• Rental income 

Tax Rates

Notable Tax Benefits

Among the incomes exempt in 2026:

• All income from foreign sources for Georgian residents

• State pension and reimbursements from private pension schemes up to the amount of contributions paid

• Scholarships and state grants

• The first 6 months (30 calendar days) of employment income in Georgia for a non-resident not linked to a permanent establishment

• The first 6,000 GEL of annual taxable income for persons with disabilities from birth

• Capital gains on disposal of tangible assets held for more than 2 years

• Capital gains on the sale of a vehicle held for more than 6 months after registration

• A single parent benefits from a 3,000 GEL annual allowance (new from 2024)

Simplified Regimes for Self-Employed Persons

Micro-enterprise: Available to natural persons working alone (without employees), whose annual turnover does not exceed 30,000 GEL and whose stock does not exceed 45,000 GEL. Full income tax exemption. 

Small Business: For sole traders generating less than 500,000 GEL in annual turnover. Taxed at 1% of turnover (3% if turnover exceeds 500,000 GEL). Agrotourism and wine tourism benefit from a raised threshold of 700,000 GEL since 2024.

These statuses avoid complex accounting and CIT returns, while offering minimal tax pressure for small activities. 

Withholding Tax: The Essentials

In most cases, income tax is withheld at source (notably by the employer for salaries). Employees therefore generally do not need to file a return. The employer files and pays withholdings before the 15th of the following month.

Persons whose income is not subject to withholding tax, or residents with foreign bank accounts, must file a return before 1 April of the following year.

No Wealth Tax or Inheritance Tax

Georgia levies neither a wealth tax nor inheritance or gift taxes. Only certain inheritances and gifts received from a distant relative (3rd or 4th degree) exceeding 150,000 GEL per year are subject to income tax.