Georgia

Georgia's Virtual Zone (VZ) regime is one of the most extraordinary tax incentives in the world for IT professionals and digital service providers. A Virtual Zone company — a Georgian LLC (SShP) registered with Virtual Zone status at the Revenue Service — pays 0% corporate income tax on income earned from services provided to foreign clients (non-Georgian-source income). The individual shareholder pays 5% withholding tax on dividends distributed from the VZ company — giving an all-in effective tax rate of approximately 5% on foreign IT service revenue extracted as dividends. For high-earning developers, SaaS operators, or digital agencies with entirely international client bases, this is the lowest-cost legal IT tax structure globally outside tax havens.

The structuring workflow is: (1) form a Georgian SShP (LLC) — cost approximately USD 50 in state registration fees, completable online in 1 business day; (2) apply for Virtual Zone status at the Revenue Service — requires proof that the company's activities are in IT (software development, cloud services, digital design, data processing); (3) invoice all foreign clients through the Georgian VZ entity; (4) distribute profits as dividends, paying 5% Georgian dividend withholding tax; (5) maintain a Georgian bank account (TBC Bank or Bank of Georgia — both open for non-residents online within 48 hours). Total annual maintenance cost: approximately USD 200–400 including accounting, bank fees, and annual registration renewal.

Critical boundary condition: income from Georgian clients or from services that could be characterised as Georgian-source income falls outside the VZ exemption and is taxed at standard CIT rates (15% on distribution). The VZ exemption applies strictly to 'international IT services' as defined by Georgian Revenue Service guidance issued in 2019. Software development, API services, digital marketing, and cloud infrastructure clearly qualify; consulting services with significant Georgian-market focus may not. Obtain a written ruling (Preliminary Tax Opinion) from the Revenue Service before assuming coverage for non-standard activities.

Georgia's standard path to permanent residency for long-term nomads operates through the continuous physical presence route under Article 32 of the Law on the Legal Status of Aliens. Foreign nationals who have lawfully resided in Georgia for at least 6 continuous years (reduced to 5 years for spouses of Georgian citizens) may apply for a Residence Permit (Ბინადრობის მოწმობა) — which functions similarly to a permanent residency status in the EU. The RFG (Remotely from Georgia) programme participants operate on a registration basis rather than a formal visa, as most qualifying nationalities can enter and stay for 365 days without a visa, making the 6-year clock harder to establish without a formal permit.

For nomads who want a clear legal status, the recommended approach is to incorporate a Georgian Virtual Zone company (for IT sector) or an Individual Entrepreneur registration, which entitles the holder to a Work Permit (შრომის ნება), and subsequently a Residence Permit. After 6 years of residence permit holding, Permanent Residency is available. Georgian Citizenship (საქართველოს მოქალაქეობა) requires 10 years of legal residence under Article 12 of the Citizenship Law, with reduced periods for persons of Georgian origin. Georgia does not routinely permit dual citizenship, though presidential exceptions exist.

For nomads primarily motivated by cost-of-living advantages and the 1% Virtual Zone tax rate rather than long-term residency rights, maintaining a rolling visa-free presence (365 days for most nationalities, then a brief border exit to Azerbaijan, Armenia, or Turkey) is the most common approach and has operated without enforcement complications through 2026.

Georgia is renowned for its easiest-globally bank account opening process. TBC Bank and Bank of Georgia both offer complete online remote account opening for non-residents via their mobile apps: TBC Space app and BOG mobile app respectively require only a passport scan and a short video identification call. USD, EUR, and GEL (Georgian Lari) accounts are opened simultaneously; multi-currency debit cards are dispatched within 3–5 business days or available for immediate pick-up at any branch. Both banks provide English-language mobile banking, SWIFT international wire capabilities, and Mastercard/Visa debit cards with global ATM access. Corporate accounts for Georgian VZ companies require in-person or video-verified opening with company charter and director passport — completed in 1–2 business days at any main branch.

Georgia does not mandate health insurance as a condition of entry or for the RFG programme. Public healthcare in Georgia has been extensively privatised — most hospitals are for-profit and require advance payment or insurance. Tbilisi has excellent private hospitals (Aversi, Imedis, Vivamedi) with pricing approximately 30–60% below Western European equivalents. Local Georgian health insurance from TBC Insurance, GPI Holding, or Aldagi costs approximately GEL 600–1,500/year (USD 220–550) for comprehensive cover including hospitalisation, specialist, and dental. For nomads who spend significant time outside Georgia, maintaining an international policy (SafetyWing Remote Health, IMG, or Cigna Global) that covers Georgia plus worldwide travel is more practical. Emergency services in Georgia are free under the Universal Healthcare Programme — ensuring all residents receive basic emergency treatment regardless of insurance status.