PB Services

PB Services High quality legal support and business solutions in Georgia at affordable prices.

Here in PB Services we endeavor to provide enterprising solutions in identifying the right options for setting up the company in Georgia, assisting in company maintenance and thereafter in company administration services. PB Services present expert understanding connected with the setting up of a successful business. Our vast experience means we are not limited to registering and forming companies

. We also provide the support necessary for smooth operation and maintenance with services like trademark registration, auditing, and general consultancy.

Relocation Package in Georgia: How to Correctly Pay Taxes on Employee Moving BonusesRelocating top talent to Georgia is ...
25/05/2026

Relocation Package in Georgia: How to Correctly Pay Taxes on Employee Moving Bonuses

Relocating top talent to Georgia is standard practice for the IT sector and international businesses. To simplify the move for employees, companies often cover the expenses—paying for plane tickets, initial housing rent, logistics services, or simply offering a fixed "lump-sum" allowance.

However, Georgian tax law does not have a specific legal concept for a "relocation package." The state views all such bonuses strictly through the lens of Personal Income Tax (PIT) and Corporate Income Tax (CIT). Let’s break down how relocation expenses affect both company and employee reporting, why you cannot just compensate receipts "under the table," and how to correctly structure these payments to avoid tax penalties.

How Does the Tax Authority View Relocation Expenses?
From the perspective of the Revenue Service of Georgia (RS), any benefits a company provides to an employee on top of their base salary fall into three categories:

Direct Cash Bonus (Lump-sum): The company pays a fixed cash amount, and the employee handles buying tickets and finding accommodation themselves.

Receipt Reimbursement: The employee spends their own money, submits receipts for flights and luggage, and the company reimburses that exact amount.

Benefit in Kind (Non-monetary income): The company directly buys the tickets, rents an apartment from a landlord, or hires a moving company to transport the employee’s belongings.

Tax Implications for the Employee
The golden rule of the Georgian Tax Code is that any reimbursement of an employee's personal expenses is recognized as their income and is subject to withholding tax at source.

Personal Income Tax (PIT): All three relocation package setups are subject to the standard 20% PIT rate. This means if you want your employee to receive a net amount of 3,000 GEL for their move, your accounting team will need to gross up this figure to correctly withhold and remit the tax to the state budget.

Pension Contributions: If your employee is a Georgian citizen or a foreign national with permanent residency (PR), an additional 2% is withheld for the pension fund (matched by another 2% from the company). If the employee holds a standard temporary residence permit (TRP) or works under a digital nomad/remote setup without a local work framework, pension contributions on the relocation package do not apply.

Tax Implications for the Company and the "Estonian Model"
Georgia operates under a system where a company pays a 15% Corporate Income Tax (CIT) only when distributing profits (to directors/shareholders) or when incurring expenses not related to economic activity.

If everything is structured officially: When a company properly declares the relocation package as employee income and withholds the 20% PIT, these expenditures are recognized as valid business-related expenses. In this scenario, the company's CIT on this amount is 0%.

If compensated "under the table": If a company simply pays for tickets or rent from its corporate account and logs it as standard operating expenses without taxing the employee, the Revenue Service will classify it during an audit either as a non-business expense (triggering 15% CIT) or as hidden salary. The company will be hit with the missing 20% PIT, late payment interest (0.03% per day of delay), and a penalty equal to 50% of the unpaid tax amount.

How to Do It Right?
To ensure your relocation packages do not turn into an audit nightmare, stick to these three rules:

Fix the terms in advance: The provision for a relocation bonus or expense reimbursement must be explicitly stated in the employment contract, official job offer, or a written addendum.

Budget for taxes early: Keep in mind that the cost of tickets and housing paid directly by the company increases the employee's taxable income base for that specific month.

Collect primary source documents: For every direct payment or reimbursement, your accounting team must maintain proper invoices, named boarding passes, and acts of acceptance/rendered services from vendors.

If you are moving a team to Georgia and want to build a transparent, legal compensation system without tax overpayments, reach out to PB Services. We will help you draft compliant contracts, calculate the actual financial impact, and take full charge of your business’s tax and accounting needs.

📩 DM us to book a free consultation with our specialist

📄 Why Do Some Documents Fail Abroad Without an Apostille?Relocating, launching a business, or applying to a foreign univ...
21/05/2026

📄 Why Do Some Documents Fail Abroad Without an Apostille?
Relocating, launching a business, or applying to a foreign university always involves a mountain of luggage and an even larger stack of paperwork. However, your diplomas and certificates - so significant at home - often carry no weight abroad unless they bear the “Apostille” stamp.
What is it?
An Apostille is an international stamp that verifies the authenticity of official documents for use in foreign jurisdictions.
🔷 Why is it necessary?
Without international verification, a foreign official has no way of knowing if your document is legitimate or simply a high-quality printout.
🇬🇪 The Georgia Context: Who Needs an Apostille?
Georgia is a member of the Hague Convention, but there are specific rules to keep in mind:
CIS Countries & Ukraine (Minsk Convention):
If your documents were issued in Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Uzbekistan, Tajikistan, Turkmenistan, Ukraine, or the Russian Federation, an Apostille is officially not required for use in Georgia. A notarized translation into Georgian is typically sufficient.
📌 Note: Despite the convention, having an Apostille can often speed up specific banking or educational procedures.
Western Countries (EU, USA, Israel, etc.):
For these nations, an Apostille is mandatory. Without it, your marriage certificate or diploma will not have legal force at the Georgia Public Service Hall (Justice House).
Non-Hague Convention Countries (UAE, China, Canada):
These require a more complex multi-step process known as Consular Legalization.
🚫 5 Documents That Are "Useless" Without an Apostille:
1. Educational Documents (Diplomas & Transcripts)
Without an Apostille, you cannot verify your qualifications. Most Western universities won't accept your application, and top-tier employers won't be able to formally onboard you.
📍 Important: In most countries, the Apostille must be placed on the original document.
2. Civil Status Records (Birth, Marriage, Divorce Certificates)
Essential for residency permits (VNJ), family reunification, or name changes. Without it, you are officially "unmarried" in the eyes of the state and cannot prove kinship with your children.
3. Police Clearance Certificates (Criminal Record Check)
Perhaps the most time-sensitive document. Required for almost all visas and residency tiers. Because these often expire within 3–6 months, a legalization error could cost you your application window.
4. Notarized Powers of Attorney & Statements
Planning to sell property back home or manage a bank account remotely? A foreign notary cannot verify your signature, and banks will reject the document without international confirmation.
5. Corporate Documents (Trade Register Extracts & Articles of Association)
If you are scaling your business, your corporate papers must be legalized. Otherwise, you won't even be able to open a corporate bank account abroad.
💡 What You Need to Know in 2026
📌 Georgia is actively utilizing E-Apostilles. If you need to legalize a Georgian document for use abroad, you can often do so through the Public Service Hall or online via a qualified electronic signature.
📌 Apostille first, translation second. The most common mistake is bringing a translated document without the stamp. The Apostille verifies the signature of the official who issued the original, so it must be applied first.
🛠 How to Simplify Your Move to or from Georgia?
We understand that bureaucracy and the nuances of international law are the last things you want to worry about during relocation. Whether you have questions about document preparation, business registration, or obtaining tax residency in Georgia, we are here to help.
🔷 Ask your questions in the comments below! 👇
🔷 Or DM us to book a free consultation with our specialist.

⚖️ Continuing our series on Georgia’s Act of Economic Freedom.While our first post covered what this law is and how it s...
18/05/2026

⚖️ Continuing our series on Georgia’s Act of Economic Freedom.
While our first post covered what this law is and how it shields your money from new taxes, today we’ll dive into how it protects the economy itself from government irresponsibility.
🛡 The "60/3/30" Rule: An Iron Corset for the Budget
In global practice, politicians often take the easy way out: they take on massive loans or print money, leading to inflation and crises. In Georgia, this is prohibited by law.
The Act of Economic Freedom imposes strict quantitative restrictions on the government, known as the "60/3/30 Rule." These three figures guarantee the country's macroeconomic stability.
Public Debt — No more than 60% of GDP
This is a "red line" that the government is not allowed to cross.
Why is it necessary? To prevent the country from falling into a debt trap. For comparison, the public debt of many EU countries (Greece, Italy, France) has long exceeded 100% of GDP.
The Result: A low debt level makes Georgia resilient to external shocks. Investors know that the risk of default is non-existent.
Budget Deficit — No more than 3% of GDP
The government cannot spend significantly more than it earns.
Why is it necessary? Capping the deficit is the ultimate anti-inflationary mechanism. When the state doesn't "flood" the economy with unbacked money, the national currency maintains its purchasing power.
The Result: Predictable inflation and price stability.
Budget Expenditures — No more than 30% of GDP
This rule limits the "appetite" of the state apparatus.
Why is it necessary? To ensure the state remains "small" and efficient, rather than turning into a massive bureaucratic machine that consumes private sector resources.
Important nuance: While recent amendments have added some flexibility to this point, Georgia’s political course remains unchanged—keeping spending at the minimum necessary level.
⛓️ Why is it an "Iron Corset"?
If the government violates these parameters (for example, during a force majeure or a pandemic), the law mandates that they present a plan to Parliament to return to these limits as quickly as possible. This is a legal obligation.
What does this mean for you and your business?
You are investing in a country where the rules of the game are dictated by mathematical discipline rather than political expediency. This eliminates scenarios of sudden economic collapse or sharp asset devaluation.
Want to learn how Georgia’s tax and macroeconomic stability can strengthen your business portfolio?
Our specialists will help you select the optimal structure to protect and grow your capital.
📩 Book a free consultation on the DM
🔗 https://pbservices.ge/?utm_source=web&utm_medium=soc&utm_campaign=leads&fbclid=IwY2xjawRPJexleHRuA2FlbQIxMABicmlkETFqakhJR3BlaE5SNk1XYXAyc3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHjUuLpmxnlgYB4-MpJGZrKCwqpjqys7fNGu3DVhU4PoPC0k6aswPE8QnKAtQ_aem_PPcsxbxaLC35icN2nwzupw

🗺️ What is the "Middle Corridor" and how do you open a logistics company in Georgia?​In July of this year, construction ...
15/05/2026

🗺️ What is the "Middle Corridor" and how do you open a logistics company in Georgia?
​In July of this year, construction begins on the Anaklia Deep Sea Port in Georgia, while customs digitalization already allows for cargo clearance in under an hour.
​The Middle Corridor has officially evolved from an experimental route into one of the primary transport hubs bridging Europe and Asia.
​For logistics businesses, this provides direct access to a market of 2.3 billion consumers duty-free, thanks to Georgia’s free trade agreements with both the EU and China. Furthermore, taxes can be legally minimized: the "Estonian model" allows you to pay zero corporate income tax if you reinvest profits into company development such as purchasing a fleet or expanding warehouses.
​Registering an LLC in Georgia can still be done remotely in just one day. However, in 2026, banking relations have become a critical stage; compliance requirements have tightened, and banks now conduct detailed checks on real business substance, routes, and counterparties.
​In our new article, we break down everything: from a comparison of global logistics routes to the cost of document processing at the Public Service Hall.
​👉 Read the full article here:https://pbservices.ge/blog/a-complete-guid

Why Personal Transfers to Your IE Account Could Cost You a 20% Tax RateMany entrepreneurs in Georgia treat their IE (Ind...
08/05/2026

Why Personal Transfers to Your IE Account Could Cost You a 20% Tax Rate

Many entrepreneurs in Georgia treat their IE (Individual Entrepreneur) account like their primary personal wallet. It’s convenient, fast, and seems logical—after all, “I am my business.” In reality, this level of freedom often leads to a mess in tax reporting.

There are a few subtle points often overlooked in the pursuit of low taxes. The Revenue Service (RS) sees your account as a single stream. To them, it makes little difference whether a transfer is a gift from your mother or a fee for a consultation—until you prove otherwise.

The 500,000 GEL Limit Isn't a "Red Button" Many believe that the moment turnover exceeds 500k, Small Business status is instantly revoked. However, the law allows for a "margin of error." You can exceed this limit once, pay 3% on the excess instead of 1%, and keep your status. The real problems begin if you cross the 500k mark for two consecutive calendar years. Only then is the status revoked, and you are shifted to the standard 20% income tax rate.

Why Keeping Personal Money in an IE Account is a Bad Idea In Georgia, there is no strict legal separation between “IE money” and “personal money,” but for accounting purposes, the distinction is vital. If family transfers land in your business account, the tax office may default to treating them as business income.

Yes, gifts from first- and second-degree family members are tax-free in Georgia. Но imagine this: you’ve earned 480,000 GEL, and your brother transfers another 30,000 GEL to help with a car purchase. For the system, your turnover is now 510,000 GEL. If this happens again the following year, you lose your Small Business status because of money that wasn't even profit. Proving it was a gift after the fact is a significant bureaucratic hurdle.

VAT: The Hidden Threshold Most people only watch the 500k limit but forget about the 100,000 GEL mark. As soon as your turnover (specifically business income) exceeds 100k over any consecutive 12-month period, you are required to register for VAT (+18%). This is where personal transfers can play a cruel joke: they inflate your turnover and might inadvertently push you into VAT registration earlier than necessary.

How to Make Your Life Easier The most effective and simple advice is to get a separate card at a different bank for personal needs. Keep your business account “clean”—only invoices and work-related payments.

If you do have to receive personal funds on your IE account, ask the sender to write “Personal transfer” or “Gift from family” in the payment details. It’s not a cure-all, but it’s a clear signal to a tax inspector that these amounts should not be included in your business turnover.

Georgia’s tax environment is very comfortable if you play by the rules and don't mix personal and professional finances. If you feel you are approaching your turnover limits, it’s better to consult and prepare your documents in advance rather than dealing with tax office notices later.

Protect your status and your peace of mind.

Have questions about specific amounts or transfers?
📩Message us, and we’ll help you figure it out during a free consultation.
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The Act of Economic Freedom: Why Georgia Can’t Just "Raise Taxes" 🇬🇪​Imagine a country where the government cannot simpl...
07/05/2026

The Act of Economic Freedom: Why Georgia Can’t Just "Raise Taxes" 🇬🇪
​Imagine a country where the government cannot simply hike taxes to patch a budget hole. This isn’t a libertarian pipe dream—it is the legal reality in Georgia.
​The bedrock of this stability is the Organic Law on Economic Liberty, adopted in 2011. It is precisely what makes the Georgian tax system one of the most predictable and attractive in the world.
​📖 The Origins: Why was it introduced?
​The Act was initiated between 2009 and 2010 as a strategic response to global economic challenges and a domestic need to ensure the irreversibility of reforms. Its chief architect, Kakha Bendukidze, aimed to create a system where no future political force could dismantle the liberal economic model for short-term budgetary gains.
​The law took full effect in 2013 and has since served as the ultimate benchmark for the country’s economic policy.
​🗳️ The Protection Mechanism: Referendum or Nothing
​The primary "emergency brake" for officials is enshrined in Article 2 of the Act and mirrored in the Constitution of Georgia (Art. 94).
​📌 The Government is prohibited from:
​Introducing a new nationwide tax.
​Increasing the rate of an existing tax.
​How does it work? To raise taxes, the authorities are legally obligated to hold a nationwide referendum. Only if a majority of citizens vote "Yes" can the changes take effect. In the 15 years since the concept was introduced, no Georgian government has dared to take this step, knowing that gaining public consent for a higher tax burden is nearly impossible.
​🛠️ What are the exceptions?
​To remain objective, it’s important to understand the boundaries. A referendum is not required for:
​Excise Taxes: Authorities can adjust rates on alcohol, to***co, and fuel (often used as a tool for environmental or health regulation).
​Local Taxes: Such as property tax, though these are already capped at a maximum of 1%.
​Administrative Changes: The state can change the methodology of tax collection, but not the rate itself.
​🏛️ The Power of "Organic Law" status
​Why can't the Act be overturned by a simple parliamentary vote? In the hierarchy of Georgian law, an Organic Law sits above ordinary laws. Amending it requires a qualified majority in Parliament, making the Act exceptionally resistant to political fluctuations.
​💎 The Three Pillars: The 60/3/30 Rule
​The law is anchored by three strict quantitative limits designed to ensure fiscal discipline:
​Debt Limit: Public debt cannot exceed 60% of GDP.
​Deficit Limit: The budget deficit cannot exceed 3% of GDP.
​Spending Limit: Government expenditures cannot exceed 30% of GDP.
​Next week, in Part 2, we’ll dive into how the "60/3/30" rule protects the country from inflationary shocks and why this matters more than just having low tax rates.
​✅ Planning a business relocation or a major investment in Georgia?
​Tax stability is the foundation, but it’s vital to structure your business correctly within the legal framework. Our experts offer a free consultation to analyze your specific case and help you build a secure roadmap for operating within Georgian jurisdiction.
​📩 You can book the consultation in the DM
🔗 Visit the link for more: https://pbservices.ge/?utm_source=web&utm_medium=soc&utm_campaign=leads&fbclid=IwY2xjawRPJexleHRuA2FlbQIxMABicmlkETFqakhJR3BlaE5SNk1XYXAyc3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHjUuLpmxnlgYB4-MpJGZrKCwqpjqys7fNGu3DVhU4PoPC0k6aswPE8QnKAtQ_aem_PPcsxbxaLC35icN2nwzupw
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Business Ethics & Gifting in Georgia: Where Do Good Intentions End and Risks Begin? 🇬🇪​Georgian hospitality is world-ren...
06/05/2026

Business Ethics & Gifting in Georgia: Where Do Good Intentions End and Risks Begin? 🇬🇪
​Georgian hospitality is world-renowned. In our culture, a gift is a natural gesture of respect. However, in the business world—especially when interacting with the state—it is crucial to distinguish a friendly token of appreciation from a corruption risk.
​Here is how to honor tradition without breaking the law.
​🏛️ Gifts to Public Officials
​The rules here are the strictest. According to the Georgian Law "On Conflict of Interest and Corruption in Public Service," there are clear limits for officials:
​The Price Tag: The total value of gifts received by an official over a year must not exceed 15% of their annual salary. Additionally, a single gift cannot exceed 5% of their salary.
​What Counts as a Gift? It’s not just physical items. Services, dinner invitations, or paid trips are all legally classified as gifts.
​The Audit: Officials are required to declare expensive gifts. If a gesture looks like an attempt to influence a decision (e.g., right before a tender or license issuance), it can be prosecuted as bribery under Article 339 of the Criminal Code of Georgia.
​✍️ Pro-Tip: If you work with the public sector, the best "gift" is the high-quality fulfillment of your obligations. Symbolic souvenirs (like a company calendar or notebook) are fine, but it’s best to skip the luxury items.
​👨‍💼 Gifts Between Private Companies
​In the private sector, limits aren’t as strictly codified by law, but corporate ethics and internal policies take center stage.
​Transparency: If you’re giving something to a partner, do it openly. A gift sent to the office is far more ethical than an envelope or a high-end gadget handed over privately in an informal setting.
​The Occasion: Timing is everything. It is most appropriate to give gifts during public holidays, New Year, or upon the successful completion of a major project.
​Local Context: Wine is the classic, always-appropriate gift in Georgia. However, even here, it’s better to choose boutique wineries or reserve collections—emphasizing your partner’s status rather than trying to "buy" it.
​🛂 The "Self-Check" Test
​Before you send that gift, ask yourself these three questions:
📌 Can the recipient accept this openly in front of their colleagues?
📌 Does the timing coincide with a major business decision in your favor?
📌 Does the value feel excessive compared to standard business etiquette?
​If any of these answers give you pause, it’s better to stick to a professional thank-you letter or corporate memorabilia.
​The Bottom Line: Relationships are the heart of Georgia. A bottle of fine Saperavi or a basket of fruit is part of the culture. But when it shifts to large sums, luxury watches, or all-expenses-paid trips, you are walking the fine line of a bribe.
​Stay informed on the legal side of doing business in Georgia — Subscribe for more updates! 🇬🇪
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Driving Licenses in Georgia 2026: Key Rules and RestrictionsThe rules for obtaining and using driving licenses in Georgi...
30/04/2026

Driving Licenses in Georgia 2026: Key Rules and Restrictions
The rules for obtaining and using driving licenses in Georgia have been finalized over the past year. Here are the essential points for everyone behind the wheel.

1. How long can you drive with a foreign license?
The one-year rule remains in effect in 2026. You can legally drive using your national license (issued in the EU, Russia, Belarus, Ukraine, and other countries) for 1 year from the date of your last entry into Georgia.

While this period resets every time you cross the border, keep in mind that constant "visa runs" can become an obstacle when dealing with insurance companies or accidents, as insurers take your actual residency status into account.

2. The 185-Day Rule or Residence Permit (VNJ)
The most significant change, which took effect in 2025 and is now fully operational, requires you to prove your residency status to be eligible for exams or a license exchange.

The MIA Service Agency system will not allow you to register unless one of the following conditions is met:

You hold a valid Georgian Residence Permit (of any type).

You have stayed in the country for more than 185 days within the last 12 months.

Border crossing data is checked automatically. If you have been in the country for less than six months and do not have a residence permit, you will not be able to sign up for theory or practical exams.

Important: To exchange your license without taking exams (if there is a relevant agreement between your country and Georgia), you will need a certificate from your home country’s Ministry of Internal Affairs, properly apostilled or legalized.

If you have any questions about the procedure or need help preparing documents for a Residence Permit - we are here to help

🛂 New Passport or Name Change: When to Update Your Georgian ID Card?Getting a new foreign passport or changing your surn...
29/04/2026

🛂 New Passport or Name Change: When to Update Your Georgian ID Card?
Getting a new foreign passport or changing your surname is a major legal milestone in Georgia. To ensure your residence permit doesn't turn into "invalid plastic" at the most inconvenient moment, it is crucial to follow these rules.
We’ve broken down how to properly update your documents to avoid fines and issues with the banks.
❓ Do I need to change my ID card if my surname is the same but the passport is new?
Yes, absolutely. Your ID card is strictly linked to your passport number. In the Public Service Development Agency's database, your identity is verified by the combination of: Name + Surname + Document Number. If your passport number changes, the data on your card is officially considered outdated.
⏳ What are the legal deadlines?
Punctuality is key here. The law allows only 10 calendar days to notify the authorities of any changes.
🔷 If you renewed your passport at a consulate or in your home country: The countdown begins the moment you receive the physical document.
🔷 If you changed your surname: We recommend starting the ID card update process immediately after you have your new foreign passport in hand.
⚠️ What happens if you miss the deadline?
1. Blocked Bank Accounts: Banks regularly sync their data with the state registry. If they see your old passport is annulled and no new ID card data has been entered, access to your banking app and cards may be restricted.
2. Border Issues: Border control will see a discrepancy between the system data and your physical card.
3. Fines: Administrative penalties apply for late updates. In cases of long-term violation, there is even a risk of your residency permit being revoked.
📝 How to proceed:
1. Translation may be required: You might need a notarized Georgian translation of your new passport, especially if you have a complex name or surname.
2. Visit the Public Service Hall (Justice House): You do not need an appointment; this procedure is handled on a walk-in basis. Bring your new passport, the translation (if required), and your old ID card.
3. Submit an application: The operator will prepare a request for a card replacement due to "change of data."
4. Timeline & Cost: You can choose the standard service (10 business days - approx. 60 GEL) or expedited service (same-day or next-day issuance for an additional fee).
💡 Pro-Tip:
If you changed your surname due to a marriage registered in Georgia, the system will update automatically. However, the legal obligation to replace your physical ID card within 10 days still rests on you!

Still have questions about documents or deadlines?
Drop a comment below, and we’ll help you figure it out! 👇
Or DM us to book a free consultation with our specialist to review your specific case.

🔗Visit the link and learn more about us: https://pbservices.ge/?utm_source=web&utm_medium=soc&utm_campaign=leads&fbclid=IwY2xjawRPJexleHRuA2FlbQIxMABicmlkETFqakhJR3BlaE5SNk1XYXAyc3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHjUuLpmxnlgYB4-MpJGZrKCwqpjqys7fNGu3DVhU4PoPC0k6aswPE8QnKAtQ_aem_PPcsxbxaLC35icN2nwzupw

DTT: Your Shield Against Double Taxation While Working Globally 🌍This is the first part of our deep dive. Today, we’re t...
27/04/2026

DTT: Your Shield Against Double Taxation While Working Globally 🌍
This is the first part of our deep dive. Today, we’re talking about the EU, and in our next post, we’ll break down the "special case" of the USA.
Part 1. Georgia and the European Union
Many expats make the same mistake: they assume that simply opening an Individual Entrepreneur (IE) account in Georgia automatically severs their ties with European tax authorities.
In reality, if you are an EU citizen or maintain a "center of vital interests" there (a home, family, or residency permit), your home country, by default, expects a tax on your global income.
This is where the DTT (Double Taxation Treaty) comes in—an international shield that officially tells your home country: "This income belongs to Georgia, don’t touch it."
Georgia has signed 58 international agreements that protect you from paying taxes twice.
🤝 What is a DTT?
Think of a DTT as a "fair play" agreement between two countries. It determines who has the primary right to tax your money.
The Exemption Method: Your home country says: "Okay, you paid 1% in Georgia. Since you’re a resident there, we won’t touch this income at all."
The Credit Method: Your country says: "Our tax rate is 30%, but you only paid 1% in Georgia. Just pay us the 29% difference."
🇩🇪 Case Study: The Germany Example
Meet Max, a software engineer with a German residence permit who lives in Tbilisi for 7 months a year. He registered as an IE and pays 1% on his €100,000 turnover. In Germany, the tax on such income could reach up to 42%.
How does Max avoid paying Germany?
Max obtains a Tax Residency Certificate (TRC) from the Georgian Revenue Service. This is the official proof that he is "one of us" in the Georgian system.
According to the treaty between Georgia and Germany, business income is taxed where the "permanent establishment" (his Georgian IE) is located.
Max presents his TRC to the German tax office, and they fully exempt his income from German taxes.
Result: Max legally pays only 1% instead of 42%.
✅ What do you need for this to work?
Live in Georgia for 183+ days (or obtain HNWI status).
Have your TRC in hand. Without this piece of paper, you are just a tourist in the eyes of the law, and your home country has every right to demand taxes at their local rates.
💬 Let’s discuss!
Tax residency is often the "hidden boss" of relocation. We’re curious:
Which country’s tax system keeps you up at night? * Have you already checked if your country has a DTT with Georgia? (Drop the country name in the comments, and we’ll tell you if the "shield" is active! 👇)

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