Georgia Tax-Exempt Income: A Guide for Foreign Investors (2025)
Understanding which income streams are exempt from taxation is crucial for foreign investors aiming to optimize their tax liabilities in Georgia.
1. Dividends and Capital Gains (under specific conditions):
Dividends from Georgian Companies:
Generally, dividends received by non-resident companies from Georgian companies are subject to withholding tax.
However, double taxation treaties may reduce or eliminate this tax.
Certain investment vehicles and special economic zones may offer exemptions under specific regulations.
Capital Gains from the Sale of Shares:
Capital gains from the sale of shares in Georgian companies by non-residents are generally taxable.
Double taxation treaties may offer exemptions or reductions.
Specific exemptions may apply within special economic zones or under certain investment agreements.
Double Taxation Treaties:
Georgia has double taxation treaties with numerous countries. These treaties often provide exemptions or reduced rates for dividends and capital gains.
It is crucial to consult the relevant tax treaty to determine the applicable rules.
2. Interest and Royalties (under specific conditions):
Withholding Tax:
Interest and royalties paid to non-residents are generally subject to withholding tax.
Double taxation treaties may reduce or eliminate these taxes.
Specific Exemptions:
Certain types of interest or royalties may be exempt under specific regulations or within special economic zones.
3. Income from Special Economic Zones (SEZs):
Tax Incentives:
Georgia has established SEZs to attract foreign investment.
Businesses operating within these zones may benefit from tax exemptions or reduced tax rates, including exemptions on certain types of income.
The specific exemptions vary depending on the SEZ and the type of activity.
4. Income from International Organizations:
Exemptions:
Income earned by accredited international organizations and their employees in Georgia is typically exempt from taxation.
5. Other Exemptions:
Diplomatic Income:
Income earned by accredited diplomats is exempt from taxation.
Important Considerations for Foreign Investors:
Double Taxation Treaties:
Always consult the relevant double taxation treaty between Georgia and your country of residence.
Revenue Service of Georgia:
Stay informed about the latest regulations and guidelines from the Revenue Service of Georgia.
Documentation:
Maintain accurate and complete records to support any claims for tax exemptions.
Professional Advice:
Seek professional tax advice from experts in Georgia to ensure compliance and maximize your benefits.
Key Takeaway:
Tax exemptions in Georgia are often subject to specific conditions and requirements.
Double taxation treaties play a significant role in determining tax liabilities.
Special economic zones offer attractive tax incentives.
It is very important to keep up to date with the guidelines published by the Revenue Service of Georgia.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
Please read our terms of service
before entering this site.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
Please read our terms of service
before entering this site.