Why Georgia’s 1% Tax Rate Makes It the Best Place for Business
Why Georgia Is the Best Place to Do Business
The reasons are simple:
- Ultra-friendly tax system — the “Small Business” status (Individual Entrepreneur) lets you pay just 1% tax on turnover up to ₾500,000 per year (around $185,000 USD, approximate).
- Easy registration — available both online and in person.
- Open international payments — freely receive transfers from companies and individuals worldwide.
How Georgia’s 1% Tax Compares to Other Countries in the Region
Across many post-Soviet countries, tax regimes vary (self-employment, patent systems, simplified taxation), but even the most “generous” options rarely drop below 4–6%.
| Country | Typical Small Business / Simplified Rate | Notes |
|---|---|---|
| Georgia | 1% | Up to ~$185,000 USD turnover (≈ ₾500,000) |
| Russia | 4–6% | Varies by regime and region |
| Belarus | 20% | Standard VAT/other regimes may apply |
| Kazakhstan | Up to 37% | Depends on regime and income type |
| Armenia | 1% (IT only) | Preferential rate limited to IT sector |
| Uzbekistan | 12% or fixed tax | Depends on chosen regime |
| Tajikistan | 4–6% | Varies by simplified/self-employment regime |
| Ukraine | 6% | Updated rate |
The Bottom Line
No other country in the region offers conditions as attractive as Georgia, with its symbolic 1% tax rate. Here you can:
- Open an international bank account
- Work legally with clients worldwide
- Obtain business status either remotely or in person
That’s why Georgia is rapidly becoming a top destination for freelancers, entrepreneurs, and small businesses.
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