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How to Become a Tax Resident of Georgia

Learn about the requirements and procedure for obtaining tax residency status in Georgia in our 2024 overview.
March 28, 2024
Giorgi Zhuzhunashvili, Lawyer, Partner at Tax Practice
The article examines the main aspects of obtaining tax resident status in Georgia in 2024.

We will consider the requirements for residency, income, and connections with Georgia, as well as the opportunities and responsibilities associated with this status. If you are considering Georgia as a potential place of residency or are interested in the tax aspects of this country, this article will help you delve deeper into the topic.

Who can become a tax resident of Georgia in 2024

Tax resident status can be obtained by residing in the country for more than half a year (more than 183 days) during consecutive 12 calendar months.

Moreover, tax residency arises in the year following this period’s completion (if the 183-day period ends on December 31, 2021, you are a tax resident of Georgia for the year 2021, if the 183-day period ends on January 1, 2022, you are a tax resident of Georgia for the year 2022).

Time spent in Georgia does not include the time during which a natural person was in Georgia:
  • as a person with diplomatic or consular status, or a member of the family of such person
  • as an employee of an international organization operating under an international agreement of Georgia, or a person serving in a foreign state’s public service in Georgia, or a member of the family of such person, except for Georgian citizens
  • when moving from one foreign country to another through the territory of Georgia
  • for treatment or leisure

Exceptional conditions for obtaining the status of tax resident of Georgia

The Tax Code of Georgia provides the opportunity to obtain tax resident status for individuals with significant assets (HNWI).

For this, the individual must meet the requirements.

Income requirements:
  • the aggregate value of the interested person's assets is at least 3,000,000 lari or
  • their aggregate income for each of the last 3 years exceeded 200,000 lari
Connection requirement to Georgia:
  • the applicant is a citizen of Georgia or has a residence permit in Georgia or
  • their income from a source in Georgia amounts to 25,000 lari per year
Requirement for the presence of assets in Georgia:
  • the interested person has assets in Georgia (including cash, real estate, vehicles) with a total market value of at least 500,000 USD
Important:
  • Assets with an aggregate market value of 3,000,000 lari may be located both in Georgia and abroad
  • The type of assets does not matter: houses, apartments, yachts, vehicles, cash, securities

What you need to know about tax resident status in Georgia:

  • Tax resident status is effective in the year of its acquisition. The procedure needs to be repeated for the next year.
  • Having tax resident status in Georgia does not exclude simultaneously having tax resident status in another country, from which tax obligations arise.
  • Income received by a tax resident of Georgia from a foreign source* is not subject to income tax in Georgia.
Income from a foreign source includes income that is not related to income received from a Georgian source (see Article 104 of the Tax Code of Georgia).

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MARIA GUSEINOVA
Leading Manager of Commercial Department