# Individual entrepreneur in Georgia: the 1% tax for foreigners How a foreigner registers as an individual entrepreneur in Georgia, gets small business status with the 1% tax, and what changed in 2026. [Corporate law](https://mmlaw.ge/en/corporate-lawyer/) · October 11, 2026 · 5 min read An individual entrepreneur (IE) with small business status is the simplest way to start a business in Georgia, so it is popular with foreigners — especially freelancers. But there are details you should know in advance. ## Registration - You register as an individual entrepreneur at the Public Service Hall — you need your passport and a legal address in Georgia. - If the address isn't yours, you need the owner's consent. - After registration, you apply to the Revenue Service for small business status. ## How the 1% works - With small business status, the tax is 1% of income if your annual income does not exceed GEL 500,000 - If your annual income passes GEL 500,000, all your income is taxed at 3% from the start of that month until the end of the year - You file a declaration and pay the tax every month, by the 15th of the following month ## What the 1% doesn't cover Not every activity qualifies — the Government keeps a list of excluded activities. Rent, interest, dividends and similar income are not taxed at 1% either. Choosing the wrong activity is a common reason for losing the status and paying extra tax. ## What changed in 2026 Since 1 March 2026, a foreign individual entrepreneur, as a self-employed person, also needs the right to labour activity — and a suitable residence permit or visa — to work in Georgia. Registering as an IE alone is no longer enough. ## Tax residency You become a Georgian tax resident if you spend 183 days or more in Georgia in any continuous 12-month period. Residency affects where and how your income is taxed, so it should be assessed together with the rules of your home country. ## How we help - Choosing the right activity and registering - Getting small business status - The right to work and a residence permit - Disputes with the Revenue Service ## Legal basis - [Law on Entrepreneurs](https://matsne.gov.ge/ka/document/view/5230186) - [Tax Code of Georgia](https://matsne.gov.ge/ka/document/view/1043717) - [Law on Labour Migration](https://matsne.gov.ge/ka/document/view/2806732) Official texts (in Georgian) — Legislative Herald of Georgia, matsne.gov.ge. This article is general information and does not replace advice from a lawyer on your specific case. Every case is different — don't rely on general information. Contact a lawyer for advice. [Corporate lawyer](https://mmlaw.ge/en/corporate-lawyer/) ## Frequently asked questions ### Can a foreigner register as an individual entrepreneur? Yes. You register at the Public Service Hall with your passport and a legal address in Georgia. Since 2026 you also need the right to labour activity to work. ### What happens if income exceeds GEL 500,000? From the start of the month in which you pass the threshold until the end of the year, all your income is taxed at 3% — not just the part above the limit. Plan ahead as you get close to it. ### Do I have to file every month? Yes. The declaration and the tax are due by the 15th of the following month. ## Related topics - [#For foreigners](https://mmlaw.ge/en/foreigners/) - [#Business](https://mmlaw.ge/en/corporate-lawyer/) - - [Company & business · For foreigners](https://mmlaw.ge/en/foreigners/company-registration-in-georgia/) - - [Work permit & sole trader · For foreigners](https://mmlaw.ge/en/foreigners/work-permit-and-sole-trader/) - - [Corporate lawyer](https://mmlaw.ge/en/corporate-lawyer/) - - [Registering an LLC in Georgia: what you need](https://mmlaw.ge/en/blog/how-to-register-llc-in-georgia/) - - [Buying property · For foreigners](https://mmlaw.ge/en/foreigners/buying-property-in-georgia/) - - [Residence permits · For foreigners](https://mmlaw.ge/en/foreigners/residence-permit-in-georgia/) - - [Criminal cases · For foreigners](https://mmlaw.ge/en/foreigners/criminal-defense-for-foreigners/) - - [Family cases · For foreigners](https://mmlaw.ge/en/foreigners/family-law-for-foreigners/) Blog ## All articles - [Criminal defense](https://mmlaw.ge/en/blog/foreigner-arrested-in-georgia/) — Foreigner arrested in Georgia: rights and first steps October 11, 2026 · 5 min read - [Administrative law](https://mmlaw.ge/en/blog/deportation-from-georgia/) — Deportation from Georgia: grounds, deadlines and appeal October 11, 2026 · 5 min read --- Source: https://mmlaw.ge/en/blog/individual-entrepreneur-georgia-1-percent-tax/ · MMLAW · +995 551 00 43 00 · info@mmlaw.ge