Georgia offers a relatively straightforward and low‑cost path to residency for many foreign nationals through the creation of a sole proprietorship. The scheme leverages the country’s territorial tax system and modest turnover requirements, making it attractive for digital nomads and entrepreneurs seeking a European base.
Why Georgia?
- Territorial tax regime – only income generated within Georgia is taxed; foreign‑source income is generally exempt.
- Low corporate tax – a sole proprietorship is taxed at 1 % of turnover (not profit) on the first 500,000 Lari (≈ US $180,000).
- Banking accessibility – international banking services are available, and accounts can be opened remotely via power of attorney.
Sole Proprietorship Residency Scheme
A sole proprietorship in Georgia is an unincorporated business structure without limited liability. To qualify for residency under this model, applicants must meet the following financial thresholds:
- Annual turnover: at least 50,000 Lari (≈ US $18,000).
- Tax payment: 1 % of turnover, which typically amounts to less than US $200 per year for the minimum turnover level.
- Liability note: because the structure lacks limited liability, owners are personally responsible for business obligations.
Taxation and Financial Requirements
| Item | Detail |
|---|---|
| Tax rate | 1 % of turnover (up to 500,000 Lari) |
| Minimum turnover for residency | 50,000 Lari per year |
| Approximate annual tax cost | < US $200 (based on minimum turnover) |
| Tax base | Turnover, not profit |
Residency Timeline and Path to Permanent Residency
- Initial residency: Granted for one year upon successful registration of the sole proprietorship and proof of the required turnover.
- Renewals: Subsequent renewals are possible each year; longer periods may be granted as the business remains active.
- Permanent residency: After maintaining an active sole proprietorship for ten consecutive years, applicants become eligible for permanent residency.
Eligibility Restrictions
- The method is generally viable for citizens of Western countries, South Africa, and some East Asian nations.
- Applicants from the Middle East, South Asia, and many African countries are unlikely to qualify under this scheme.
Practical Considerations
- Remote setup: The entire process—including company registration and bank account opening—can be completed remotely using a power of attorney.
- In‑person option: A short visit (approximately one week) to Georgia allows local service providers to assist with registration, banking, and residency paperwork.
- Potential risks: Geopolitical tensions in the South Caucasus could lead to future sanctions or regulatory changes affecting the financial sector. Applicants should monitor developments and be prepared for possible policy shifts.
Summary
Georgia’s sole proprietorship residency route provides a low‑tax, low‑cost entry point for eligible foreigners seeking European residency. By maintaining a modest annual turnover and paying a minimal 1 % tax, applicants can secure a one‑year residence permit, renew it annually, and eventually qualify for permanent residency after a decade of continuous operation. Prospective applicants should assess personal liability exposure, stay informed about regional political risks, and consider whether their nationality aligns with the scheme’s eligibility criteria.
