Ministry of Justice

Why Georgia’s 1% Tax Rate Makes It the Best Place for Business

Why Georgia Is the Best Place to Do Business

Ministry of Justice
Photo by depositphotos.com

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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