We all want to find legal ways to reduce our yearly tax burden. For many of us, that means establishing our homes and/or businesses in low-tax countries. The good news is that most countries with low-tax systems are actively trying to attract wealthy individuals and the business expertise that they bring. The money you earn outside of Georgia will be yours to keep. So long as you limit the portion of your total income earned in Georgia you will certainly pay less in taxes, with the possibility of eliminating your tax obligations entirely. While it’s certainly not a “tax-free” country in the same vein as Panama, the British Virgin Islands or the Cayman Islands, it is what we define as a low-tax country. Georgia has one of the most straightforward and liberal tax regimes as the authorities have made it fairly easy to establish tax residency.
Eligibility for Tax Residency in Georgia
The process is surprisingly simple. Any individual living in Georgia for 183 days during a consecutive 12-month period is eligible to apply for tax residency. In the vast majority of cases these applications are accepted.
Of course, you may not be able or interested in spending half a calendar year in Georgia. Fortunately, the government has created a special regime for those designated as “high net-worth individuals.”
Someone is considered to be high net-worth if: 1) the value of his/her confirmed property is greater than GEL3,000,000 (approximately $1.35 million); or 2) his/her annual income exceeded GEL200,000 (about $90,000) in any of the three previous years prior to the year they submit the application.
There are a few other conditions that must be met, however. The applicant must obtain either a Georgian residency permit, Georgian nationality or the applicant must verify receiving at least GEL25,000 (just over $11,000) of income in a single year from a Georgian company.
Bear in mind that obtaining a Georgian residence permit is relatively easy for someone earning Georgian-source income of any significant amount, so the first option is practicable in most cases.
Proof of identity – Valid Passport or national ID-card
Proof of accommodation – deed or lease agreement; Novasigma will prepare an agreement with the landlord, we can introduce specialist real-estate companies and we will also have a notary attest the agreement. The rental agreement can also be prepared and provided by our local law firm. The client is not under any obligation to rent or buy any real-estate.
Proof of employment – employment contract with a Georgian entity. The employment contract can also be prepared and provided by our partner company. Furthermore, it is possible to apply residency with a self employment status if applicant is the director and shareholder of a Georgian company.
Proof of suﬃcient funds – bank reference issued by a Georgian bank stating that you have suﬃcient funds to support your stay in Georgia without relying on the Georgian social system; a deposit of 1.200-15.000 EUR into client’s Georgian bank account is required as proof. Once the bank issues a reference letter conﬁrming that the funds are present, it is possible to withdraw the deposited funds.
Timeline – Process takes up to 2 weeks and requires at least one visit to Tbilisi, Georgia
OUR EXPERIENCED CONSULTANTS AND LOCAL ATTORNEYS WILL HELP YOU FILL ALL REQUIREMENTS AND ASSIST YOU DURING EVERY STEP OF PROCESS.
Before changing your tax residency you should be sure that the chosen country is really suitable for you. We strongly recommend you use our TAX PLANNING SERVICE before making any decisions. In most cases we can find alternative solutions for our clients which are more cost effective. Always feel free to contact us for a quote. Simply send your contact details and a short brief about your current situation and time frame so we can reach out to you with a quote.
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