Georgia lies at the crossroads between important markets and this strategic position makes many investors open companies there in order to have easy access to both Europe and Asia. The country has seen an increase in the number of expatriates who are working for long or short periods of time in Georgia. There are many types of companies that hire foreign workers and the workforce in Georgia is diverse. Our Georgian company formation experts can help you, if you are an employee or an employer in Georgia and want to know more about the applicable taxes.
Taxation for international workers in Georgia
It is not uncommon for international branches
, belonging to big corporations, to hire foreign employees in Georgia. Expatriates in Georgia
are taxed only on their income that is produced in Georgia, as opposed to residents who are taxed on their worldwide income.
This can be advantageous for international executives in Georgia. The income tax rate is fixed at 20 percent, but there are some cases when the rate is only 5 percent. The cases in which this tax is lower include the type and source of the income and/or the status of the employee. Our Georgian company incorporation experts can give you detailed information about the cases in which the exceptions for the lower rate apply.
The personal income tax rate is fixed and does not depend on the total amount of the income received by the employee.
Special rules for expatriates in Georgia
When working in Georgia as a foreigner, an individual has to take some aspects into consideration. Short-term employees in Georgia (those who work in the country for less than one year) do not have to observe any special residency rules or mind any payroll considerations.
Non-residents working in Georgia still have to observe the same rules for filing tax returns as any other employee.