# Freelancer tax in Georgia: Upwork, Fiverr, foreign salary If you live in Georgia and work remotely for foreign clients or a foreign company, the money comes from abroad, but the income is taxed in Georgia. We help you choose the right route, register and file returns — without overpaying tax or penalties. - Confidential - Georgian · English · Russian - Free first consultation - Courts of all instances Under Article 104 of the Tax Code, services performed in Georgia and employment carried out in Georgia are Georgian-source income. It doesn't matter where the money arrives — on Upwork, Payoneer or a foreign bank. So money received from abroad is not tax-free. A foreign company does not withhold tax in Georgia. If you are not registered, you must report the income in an annual return by 31 March of the following year and pay 20% (Articles 81 and 153). Registering as a sole trader with small business status — 1% — is often cheaper. ## Your options OptionTaxGood to knowNot registered20%, annual return by 31 MarchNo return — a penalty plus interestSole trader with small business status1% up to GEL 500,000, 3% aboveA return every month, by the 15th of the following monthEmployee of a foreign company (employment contract)Salary — 20%The 1% doesn't apply to salary ## Small business status — what to watch for - The 1% covers business income only, not salary (Article 90). If you work for one company with fixed hours and under its direction, it may be treated as salary - Consulting, legal, medical, audit, architecture and some other activities can't use the 1% (Government Resolution No. 415) - If annual income passes GEL 500,000, all income is taxed at 3% from that month until the end of the year - Services to foreign businesses are generally outside Georgian VAT — the place of supply is where the client is (Article 162¹) - Pensions: an employee of a foreign employer and a sole trader count as self-employed — joining the pension scheme is voluntary ## For companies: an employee who lives abroad - An employment contract longer than 1 month must be in writing; state that the work is done remotely from abroad (Labour Code, Articles 12 and 14) - Services a non-resident performs abroad are not Georgian-source income, so as a rule no tax is withheld; the exception is management and financial services — 10% - How the salary of an employee working abroad is taxed depends on the details — we check it in advance, together with any double tax treaty - A foreigner who never enters Georgia and works fully remotely doesn't need the right to work (Labour Migration Law, Article 1) - The pension scheme doesn't cover foreigners without a permanent residence permit in Georgia ## Our services - Assessing your tax — 20% or 1% - Registering as a sole trader with small business status - Choosing the right activity - Monthly and annual tax returns - For companies — contracts and tax for remote staff abroad - Disputes with the Revenue Service ## Questions & answers ### Do I pay tax on money from Upwork or Fiverr? Yes, if you do the work in Georgia. As a sole trader with small business status — 1%; unregistered — 20% through an annual return. ### How do I register as a sole trader? At the Public Service Hall, with your ID and an address. Then you apply for small business status to the Revenue Service on rs.ge. ### What is the 1% limit? GEL 500,000 a year. Above it, all income is taxed at 3% from that month to the end of the year; if you exceed it 2 years in a row, the status is cancelled. ### Can a foreign salary be taxed at 1%? No. Salary is excluded from the 1%. If you genuinely provide services rather than work as an employee, the contract must show it — we review the contract. ### What if I don't file the annual return? The penalty is 5% of the tax, 10% if more than 2 months late, plus interest of 0.05% per day. ### Do we withhold tax for a remote employee living abroad? For services performed abroad, as a rule, no; for management and financial services — 10%. Salary depends on the details — contact us before signing the contract. ## Legal basis - [Tax Code of Georgia](https://matsne.gov.ge/ka/document/view/1043717) - [Government Resolution No. 415 (2010) — small business status](https://matsne.gov.ge/ka/document/view/1164635) - [Labour Code of Georgia](https://matsne.gov.ge/ka/document/view/1155567) - [Law on Funded Pensions](https://matsne.gov.ge/ka/document/view/4280127) - [Law on Labour Migration](https://matsne.gov.ge/ka/document/view/2806732) Official texts (in Georgian) — Legislative Herald of Georgia, matsne.gov.ge. ## Related topics - [#Business](https://mmlaw.ge/en/corporate-lawyer/) - [#Employment](https://mmlaw.ge/en/employment-lawyer/) - - [Employment and labour lawyer](https://mmlaw.ge/en/employment-lawyer/) - - [Corporate lawyer](https://mmlaw.ge/en/corporate-lawyer/) - - [Intellectual property lawyer](https://mmlaw.ge/en/intellectual-property-lawyer/) - - [Registering an LLC in Georgia: what you need](https://mmlaw.ge/en/blog/how-to-register-llc-in-georgia/) - - [Work permit & sole trader · For foreigners](https://mmlaw.ge/en/foreigners/work-permit-and-sole-trader/) - - [Tax lawyer](https://mmlaw.ge/en/tax-lawyer/) - - [Director liability and company insolvency](https://mmlaw.ge/en/director-liability-and-insolvency/) - - [IT companies and IT specialists · For foreigners](https://mmlaw.ge/en/foreigners/it-companies-in-georgia/) Practice areas ## Other practice areas - [Criminal defense](https://mmlaw.ge/en/criminal-defense-lawyer/) — Defense at every stage — from investigation and arrest to trial and appeal. - [Drug offences](https://mmlaw.ge/en/drug-crime-lawyer/) — Defence in cases of buying, possessing, selling and importing drugs — and against fines and administrative detention. - [Cybercrime](https://mmlaw.ge/en/cybercrime-lawyer/) — Defense in cybercrime cases and help for victims of online fraud, hacked accounts and blackmail. - [Property crimes](https://mmlaw.ge/en/property-crime-lawyer/) — Defence in theft, robbery, fraud, extortion, embezzlement and misappropriation cases. - [Economic crimes](https://mmlaw.ge/en/economic-crime-lawyer/) — Defence against tax evasion, money laundering, customs and other economic charges. - [Corruption and official crimes](https://mmlaw.ge/en/corruption-crime-lawyer/) — Defence in bribery, trading in influence and abuse of official power cases. - [Violent crimes](https://mmlaw.ge/en/violent-crime-lawyer/) — Defence in assault, bodily injury, threats and homicide cases — including self-defence. - [Juvenile justice](https://mmlaw.ge/en/juvenile-justice-lawyer/) — Specialised representation of minors, focused on their rights and future. - [Civil litigation](https://mmlaw.ge/en/civil-litigation-lawyer/) — Contract, property and damages disputes — negotiated or argued in court. - [Administrative law](https://mmlaw.ge/en/administrative-law-lawyer/) — Challenging decisions of public bodies, fines, permits and licences. - [Labor disputes](https://mmlaw.ge/en/employment-lawyer/) — Unlawful dismissal, unpaid wages and employment contracts — for employees and employers. - [Corporate law](https://mmlaw.ge/en/corporate-lawyer/) — Company formation, contracts, compliance and shareholder matters. - [Real estate](https://mmlaw.ge/en/real-estate-lawyer/) — Due diligence, purchase agreements, registration and property disputes. - [Family law](https://mmlaw.ge/en/family-lawyer/) — Divorce, custody, alimony and division of property — handled with discretion. - [Inheritance](https://mmlaw.ge/en/inheritance-lawyer/) — Accepting an inheritance, the certificate of inheritance, wills and disputes between heirs. - [Intellectual property](https://mmlaw.ge/en/intellectual-property-lawyer/) — Trademarks, copyright and protection of your creative and business assets. --- Source: https://mmlaw.ge/en/freelancer-tax-georgia/ · MMLAW · +995 551 00 43 00 · info@mmlaw.ge