1% Tax Registration for Freelancers & Digital Nomads
Pay just 1% tax on your freelance or remote income - legally. Georgia's Small Business Status (SBS) is the official tax program for digital nomads, freelancers, and remote workers earning up to 500,000 GEL (~$180,000 USD) per year. One of the lowest flat tax rates in the world.
What Is Small Business Status in Georgia
Small Business Status (SBS) is a powerful legislative tax certificate granted by the Revenue Service of Georgia to qualified Individual Entrepreneurs. It transforms your legal tax obligation, replacing the baseline default 20% personal income tax with a flat, predictable 1% tax rate calculated strictly on your gross turnover.
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This tax regime is ideal for digital nomads, freelancers, software developers, remote consultants, copywriters, designers, and any international service provider who wants a fully legal, low-tax base in Georgia. It is one of the most competitive flat tax rates available to foreign workers anywhere in the world.
Commanding Turnover Thresholds: Enjoy the 1% flat rate for annual revenues all the way up to 500,000 GEL (~$180,000+ USD).
Progressive Safety Valve: If your gross turnover exceeds 500,000 GEL during the calendar year, the revenue above that limit is taxed at a modest 3% rather than invalidating your status.
​Zero Profit-Expense Tracking: Because tax is levied strictly on top-line gross receipts, you do not need to collect, defend, or track business cost receipts for income tax purposes.​
Swift Regulatory Activation: The tax certificate is filed and linked directly to your active 9-digit corporate profile through the online Revenue Service platform.
Which Freelance Activities Qualify for Georgia's 1% Tax?
While the 1% tax regime is highly flexible, Georgian tax law restricts specific economic activities from utilizing this status. Operating a forbidden activity can trigger an retroactive 20% tax restructuring.
Allowed
IT & Software Engineering
Web development, application coding, SaaS solutions, IT infrastructure maintenance.
Standard IE Regime
20% Income Tax
The baseline default rate. Taxed on net profit (Gross income minus documented, qualifying business expenses).
Allowed
Marketing & Copywriting
SEO strategy, digital ad management, content production, creative consulting.
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Standard IE Regime
20% Income Tax
The baseline default rate. Taxed on net profit (Gross income minus documented, qualifying business expenses).
Allowed
Design & Remote Consulting
UI/UX design, architecture drafting, project management, business advisory panels.
Prohibited
Financial
Services
Currency exchange operations, banking, brokerage, microfinance, crypto trading.
Standard IE Regime
20% Income Tax
The baseline default rate. Taxed on net profit (Gross income minus documented, qualifying business expenses).
Prohibted
Regulated Activites
Legal counsel, notary offices, auditing services, specialized medical practices.
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Standard IE Regime
20% Income Tax
The baseline default rate. Taxed on net profit (Gross income minus documented, qualifying business expenses).
Prohibted
Gambling & Heavy
Industry
Licensing of casinos, organization of lotteries, manufacturing of excisable goods.
The Certificate Activation Timeline
Acquiring the Small Business Status requires passing through precise synchronization points with the Revenue Service of Georgia.
STEP 01
Baseline IE Pre-conditions Check
We audit your active Individual Entrepreneur profile in the National Agency of Public Registry (NAPR) to confirm all data fields, physical addresses, and primary NACE code classifications match perfectly.
STEP 02
Revenue Service Application Submission
We access your official RS portal to format and lodge the formal petition for Small Business Status, explicitly specifying your primary service vectors according to the National Classification of Economic Activities.
STEP 03
Verification & Certificate Issuance
The Revenue Service reviews and issues your electronic Small Business Certificate. The state status takes official effect on the first day of the calendar month immediately following the application approval date.
Critical Ongoing Compliance Rules
Maintaining your 1% status demands consistent adherence to monthly declarations and financial reporting boundaries:
​Monthly Declarations Filing: You must submit an electronic tax declaration and transfer your 1% tax payment by the 15th of every following month (e.g., January's tax is due by February 15th).
The 100,000 GEL VAT Trigger: If your domestic or taxable revenue within Georgia surpasses 100,000 GEL in any rolling 12-month window, you must register for VAT. This is a separate framework that operates alongside your 1% status.
Two-Year Inactivity Trap: If you file zero declarations or fail to cross revenue thresholds for two consecutive calendar years, the state will automatically revoke your certificate.