Financial & business
Digital Nomad & Remote Work Law
Digital Nomad & 1% Tax Law, Georgia
We structure IE and 1% Small Business Status, foreign service contracts, and residence or permit steps so your file reads as defensible independent business activity—not employment in disguise—and so scaling paths stay open if you outgrow a sole IE.
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Who We Help
This service is built for
This service is built for
- Software developers, SaaS founders, and digital contractors billing clients outside Georgia.
- High-earning freelancers anchoring tax residency who need 1% Small Business Status eligibility and documentation that match real activity.
- IT-led teams building substance in Georgia and evaluating International Company Status or alternatives as revenue grows.
- Location-independent professionals moving from long visa-free stays into formal multi-year residence and tax registration.
What We Handle
Where we add legal value
Where we add legal value
- Individual Entrepreneur (IE) registration and Revenue Service steps for Small Business Status where the activity qualifies.
- Review and restructuring of foreign service agreements so deliverables, independence, and commercial terms are consistent with independent contracting.
- Coordination of residence and labour-migration filings where an IT specialist track, special permit, or related path applies to your facts.
- Advisory on moving from sole IE or Virtual Zone–style setups toward structures (including International Company Status) when scale and substance warrant it.
Key Checkpoints
What matters under Georgian law
What matters under Georgian law
- Small Business Status under the Tax Code turns on eligible activity, turnover limits, and correct registration and declarations; the 1% rate applies only within the rules that apply to your category and revenue band.
- The Revenue Service can challenge arrangements that look like dependent employment; contract language, control, and how income is described can affect classification and exposure, including standard-rate assessments where status is denied.
- Labour migration and specialist residence rules evolve; eligibility, permits, and employer or sponsor documentation should be confirmed against current requirements for your passport and role.
- Virtual Zone and International Company regimes each have substance, activity, and reporting expectations—assuming a label alone is sufficient is a common source of audit friction.
- Prohibited or excluded activities for simplified regimes are defined in law and guidance; describing work imprecisely (for example, as generic consulting when the statute is narrower) can trigger reclassification.
Document Prep
Documents to prepare before we start
Documents to prepare before we start
- Passport; certified or notarized translation where authorities or banks require Georgian language.
- Client and project agreements structured around B2B deliverables, scope, and invoicing—employment-style terms are a common weak point.
- Bank statements or other evidence that supports the source and flow of foreign revenue.
- Labour migration, special permit, or residence-track documents that apply to your category—we confirm the current checklist before filing.
- Registered legal address in Georgia (including statutory address services where you use a professional registered office).
Common Mistakes
Where clients lose time, leverage, or money
Where clients lose time, leverage, or money
- Routing most or all IE turnover through a single foreign client while contracts read like employment (fixed hours, paid leave, personal subordination)—a frequent classification risk.
- Billing significant revenue before Small Business Status and IE registration are effective; prior periods may not benefit from the 1% regime.
- Claiming simplified tax treatment for activities the Revenue Service treats as excluded or standard-rated without checking the current statutory list and your actual work.
- Relying on Virtual Zone or similar labels without local substance, contracts, and reporting that match how auditors test real activity.
Price of Silence
The cost of doing nothing (or doing it wrong)
Misclassified contracts, late activation of Small Business Status, or activity wording that does not match real work can trigger Revenue Service reassessment at standard rates, penalties, and painful back taxes. We align registration, contracts, and declarations before exposure crystallizes.
Supporting Guides
Read before you start
Practical guides to questions clients commonly ask before a Case Assessment.
Small Business Status vs Employment Income in Georgia
Georgia's 1% Small Business regime applies to qualifying entrepreneurial income, while salary income is excluded. Contract wording should match the legal and factual relationship.
Foreign Client Contracts and Georgia's 1% Small Business Status
A foreign-client contract can document an entrepreneurial relationship, but it does not create Small Business Status eligibility by itself. The actual activity, income category, source and registration facts matter.
Latest News
Recent developments in this area
Regulatory and case-law updates that affect clients using this service. These articles supplement the evergreen guides above.
Georgia's 2026 Labour-Migration Exemptions for Remote and Short-Term Work
Georgia's current Labour Migration Law contains specific exemptions for certain remote work for non-residents and for government-defined short-term professional activities.
Georgia's 1% Small Business Tax for Remote Workers: What to Check
Georgia's 1% Small Business regime can apply to qualifying entrepreneurial income, but remote workers still need to check activity eligibility, income source, employment classification, filing, VAT and tax residence.
Client Prep
The 2026 remote worker tax trap
Understand how classification risk shows up in contracts and Revenue Service practice, and which clauses and narratives usually need tightening before you rely on 1% Small Business Status.