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International IT company status in Georgia

The reduced regime for IT: 5% income tax on salaries, 5% profit tax, 0% VAT and no tax on dividends.

Price from

≈ $3,740

Best for

Company formation

Timeline

2–6 weeks

Tax

5% on profit and salaries, 0% VAT and dividends

Format

Remote and in person

Real presence in Georgia is required

This isn't a purely “remote” reduced regime: on top of registration you have to demonstrate an office and staff in Georgia and run your main operating costs there.

Sources differ on the dividend rate

Partner sources differ: some say dividends are fully exempt, others that the standard rate applies (or 0% only when profit is reinvested). Confirm the current rate with the partner at the consultation stage.

The choice

An international IT company or the virtual zone

The difference is what you have to keep in Georgia and where the money comes from. An international company gives 5% on profit and 5% on salaries, but requires an office, staff and 2 years of IT work — or a branch of a foreign IT company with that track record; the status runs indefinitely with annual reporting. The virtual zone gets by on a legal address and is arranged remotely, but the relief covers only revenue from foreign clients, and the certificate is reconfirmed roughly once a year.

	International IT company	Virtual IT zone
Company taxes	5% on profit, 0% VAT; partner sources differ on the dividend rate	0% on profit until distribution, 5% on dividends, 0% VAT on exports
Payroll taxes	Employees' salaries — 5% income tax	Employees' salaries — 20% income tax and 2%/2% funded pension
Clients	No restriction on the client's country: what's checked is the activity and presence in Georgia	Foreign clients only: income from clients in Georgia is taxed on general terms
Presence requirements	An office and staff in Georgia, 2 years of IT work — or a branch of a foreign IT company with that record	A legal address in Georgia; no requirements on track record or an office
Price and timeline	From €3,200 end to end, 14-45 days; the status alone about $2,600	From €1,250 remotely, 10-30 days: registration about $865 plus the status about $575

Getting it wrong costs months and money: international company status won't be granted to a company under 2 years old without a foreign IT branch, and the virtual zone won't remove tax on income from Georgian clients.

What the service includes

Scope: a tick means included in the price, a cross means billed separately
	Registering the company in Georgia (if it isn't registered yet)
	Preparing the pack evidencing experience and activity in IT
	Filing the international company status application with the Ministry of Finance
	Support through the tax service's review
	Opening a corporate bank account
	Monthly accounting and preparing the annual statements— billed separately
	Office rent and the costs of physical presence in Georgia— billed separately

What we need from you

1The company registered and actually operating in Georgia for 2+ years — or a branch or subsidiary of a foreign IT company with an evidenced 2-year record
2The activity — software development, IT consulting, web development, game or database development, remote administration
3Evidenced physical presence: an office and staff in Georgia
4Constitutional documents, evidence of IT experience (contracts, reporting), financial documents

Frequently asked questions

How is this different from the Virtual IT zone?

An international IT company requires a real office and staff in Georgia, and once granted the status runs indefinitely provided you report annually. The virtual zone is closer to a remote arrangement, but its certificate lasts about a year and needs renewing annually.

Can the taxable base be reduced further?

Yes — salaries paid to Georgian citizens and R&D spending in the country can be deducted from taxable profit. The 5% rate itself doesn't change, but it applies to a smaller base.

Can we get the status if the Georgian company is less than 2 years old?

Not directly, but there's an alternative through a branch or subsidiary: if the foreign parent already has 2+ years of IT experience, that counts instead of the Georgian company's own history.

Sources

Company formation in Georgia: comparison

The difference is not the price — it is who each option suits. The “Best for” column is the business profile the option is built around.

Option	Best for	Timeline	Price from
A sole trader in Georgia with small business status	IT specialists and developers working on outsourcing or outstaffing, freelancers, marketers and consultants with foreign clients, digital nomads legalising income through a sole trader without moving to Georgia, B2B services and online trade with turnover up to GEL 500,000 a year	1–3 days	$170
A Georgian LLC, set up end to end	A business with two or more founding partners, companies planning to hire staff on employment contracts, owners who want personal assets separated from business debts (unlike a sole trader)	3–7 days	$285
Virtual IT zone status in Georgia	An outsourcing developer or freelance programmer setting up an entity for foreign clients, a SaaS startup with no Georgian clients, selling subscriptions abroad, an IT outstaffing team serving foreign partners remotely	1–4 weeks	≈ $1,460
International IT company status in Georgiayou are here	An IT company with a finished product moving its jurisdiction to Georgia, an existing Georgian IT company of 2+ years moving onto the reduced regime, a foreign software company opening a Georgian branch with a real office and team	2–6 weeks	≈ $3,740
Registering a company in a Georgian free industrial zone	A manufacturer placing production in Georgia for export, an importer or exporter who needs the VAT and duty relief on goods moving in and out, an owner who can't be in Georgia in person and wants it all done under a power of attorney	2–6 weeks	on request

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