Preferential Tax Regimes for Startups and Innovation in Georgia (2025–2026)

In 2025, Georgia significantly strengthened its innovation ecosystem with the introduction of a three-tier tax incentive framework for innovative startups, innovative SMEs, and R&D providers. 

Innovative Startups

To obtain innovative startup status, a company must notably:

• Have received at least 100,000 GEL of investment from investment funds, business angel networks, or accelerators, or at least 150,000 GEL in grants from the Georgian Innovation and Technology Agency

• Not be in tax arrears, not appear in the debtor register, and not be in insolvency

The status is annual, renewable for up to 10 consecutive years.

Innovative SMEs

Innovative SME status benefits from unlimited annual renewal, supporting the long-term viability of mid-sized R&D structures.

R&D Service Providers

R&D service providers benefit from an unlimited-duration regime, granted once, designed to anchor research centres in Georgia over the long term.

Strategic Importance

These incentives position Georgia as a competitive destination for technological innovation and knowledge industries in the South Caucasus and Eastern Europe. Startups and research-oriented SMEs now have a clear tax roadmap for sustainable growth. The government has also pursued an ambitious IT training programme, with a target of 5,000 specialists trained by 2026.

International Company Status

Created in July 2019, this status is aimed at Georgian companies active in the IT and maritime services sectors that meet real economic substance criteria. It offers:

• Salary taxation at 5% (instead of 20%)

• No withholding tax on dividends

• CIT rate of 5% (instead of 15%)

• Property tax exemption (excluding land) on assets used for authorised activities

Conditions: be taxed under the new CIT model (Estonian model), demonstrate at least two years of experience in authorised activities, have qualified human resources in Georgia, and cover appropriate operational costs on site.

Virtual Zone Status

Georgian IT companies that create software and supply it exclusively outside Georgia benefit from a full CIT exemption on profits derived from such exports. This status, which does not require a physical presence in a specific geographic area, is very popular among developers and digital agencies.