Virtual IT zone status in Georgia
For exporting IT services outside Georgia: 0% profit tax until distribution and 5% on dividends.
The reduced rates (0%/0%/5%) apply only to the company's profit, VAT and dividends. Under Virtual Zone status employees' salaries are taxed on general terms — 20% income tax + 2%/2% funded pension — the reduced 5% payroll rate belongs to “International company” status, not the Virtual Zone.
The virtual IT zone or an international company
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. Both statuses are granted indefinitely.
| Virtual IT zone | International IT company | |
|---|---|---|
| Company taxes | 0% on profit until distribution, 5% on dividends, 0% VAT on exports | 5% on profit, 0% VAT, 0% on dividends |
| Payroll taxes | Employees' salaries — 20% income tax and 2%/2% funded pension | Employees' salaries — 5% income tax |
| Clients | Foreign clients only: income from clients in Georgia is taxed on general terms | No restriction on the client's country: what's checked is the activity and presence in Georgia |
| Presence requirements | A legal address in Georgia; no requirements on track record or an office | An office and staff in Georgia, 2 years of IT work — or a branch of a foreign IT company with that record |
| Price and timeline | From 2,000 GEL (≈$770) in person, 2,600 GEL (≈$1,000) remotely; 10-30 days to set up | From 2,450 GEL (≈$940) in person, 2,950 GEL (≈$1,100) remotely; 14-45 days to set up |
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.
Packages
In person in Georgia
You come and sign the documents yourself
Remotely by power of attorney
No trip, through a representative
We fix the exact package after reviewing your case. You pay the expert directly.
Company formation in Georgia: comparing the options
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 |
|---|---|---|---|
| A sole trader in Georgia with small business status | IT specialists and developers working on outsourcing or outstaffing, freelancers, designers and marketers 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, app developers publishing on the App Store | 1–3 days | from $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 | from $285 |
| Virtual IT zone status in Georgiayou are here | 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 | from $770 |
| International IT company status in Georgia | 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 | from $945 |
| 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 | from $1,000 |
What the service includes
| Registering the company at the House of Justice | |
| Opening a corporate bank account | |
| Preparing and filing the Virtual Zone Person application | |
| Support through to the certificate | |
| Accounting and the annual financial statements — a separate service | |
| Restoring the status after it is revoked for breaching the conditions — a fresh application— billed separately |
Documents and programme requirements
- 1A legal address for the company in Georgia
- 2Activity strictly in IT: developing, supporting, designing or implementing information systems
- 3Exporting services outside Georgia — deals with Georgian residents strip the company of the reduced-rate status
Frequently asked questions
Can I work with clients in Georgia and keep the status?
Does the Virtual Zone need a physical office?
How long is the certificate valid?
Related breakdowns
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Georgia's 1% tax: who gets small business status
Small business status gives a sole trader 1% on turnover up to GEL 500,000. Who is refused, which income falls outside it and when the rate rises to 3%.
Tax filing in Georgia: rs.ge deadlines and nil returns
A sole trader in Georgia files monthly by the 15th through the rs.ge portal. What to do with no turnover, how to pay the tax and when to hire an accountant.
We'll check your case before you pay
Send an enquiry — we will check your case and help you arrange “Virtual IT zone status in Georgia” in Georgia. No markup on top.
We'll cover: whether you qualify, the full cost with fees, realistic timelines, the document list. If it's not for you, we'll say so.