Regime Rate
1%
Under the Small Business Statu
Standard Top Rate
20%
without this regime
Duration
Unlimited
No expiry — permanent regime
Target Profile
Turnover Tax
Georgia
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under Small Business Statu
€1 500
Standard Rate
€21 000
Annual Saving
+€19 500
Eligibility Requirements
Who qualifies?
- Self-employed individuals with annual revenue <500,000 GEL (~€175,000)
How the Regime Works
Full details
1% flat tax on turnover (instead of standard 20% income tax). No VAT registration required below 100,000 GEL threshold. Cannot employ staff in regulated professions.
Regime vs Standard Rates in Georgia
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 20% | 1% | -19.0pp |
Frequently Asked Questions
What is the Small Business Status in Georgia?
The Small Business — 1% Turnover Tax is a special tax regime in Georgia that provides 1% flat rate to qualifying individuals or entities. 1% flat tax on turnover (instead of standard 20% income tax). No VAT registration required below 100,000 GEL threshold. Cannot employ staff in regulated professions. Legal basis: Tax Code of Georgia, Art. 88.
Who is eligible for the Small Business Status?
Eligibility for the Small Business Status is limited to: Self-employed individuals with annual revenue <500,000 GEL (~€175,000). Applicants typically must not have been Georgia tax residents during a specified prior period. Always verify current conditions at the source: Tax Code of Georgia, Art. 88.
How much tax do you pay under the Small Business Status?
Under the Small Business Status, you pay 1% flat rate on qualifying income — significantly lower than Georgia's standard top rate of 20%. On €150,000 gross, you save thousands of euros per year.
How long does the Small Business Status last?
The Small Business Status is a permanent regime with no set expiry — it applies for as long as you continue to meet the eligibility criteria.
How do I apply for the Small Business Status?
No VAT registration required below 100,000 GEL threshold. For complete application procedures, refer to: Tax Code of Georgia, Art. 88.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.