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Relocate to Georgia: Your Stress-Free Fresh Start in the Land of Hospitality
Dreaming of a life in Georgia? With GoMovin, your dream becomes reality! We provide you with an all-in-one solution for your relocation, including personal consultation, legal assistance, and much more. Discover how we simplify your international move and make it stress-free. Contact us today for a no-obligation consultation!
The topic short and concise
Dreaming of a life in Georgia? With GoMovin, your dream becomes reality! We provide you with an all-in-one solution for your relocation, including personal consultation, legal assistance, and much more. Discover how we simplify your international move and make it stress-free. Contact us today for a no-obligation consultation!
Dreaming of a life in Georgia? With GoMovin, your dream becomes reality! We provide you with an all-in-one solution for your relocation, including personal consultation, legal assistance, and much more. Discover how we simplify your international move and make it stress-free. Contact us today for a no-obligation consultation!
Dreaming of a life in Georgia? With GoMovin, your dream becomes reality! We provide you with an all-in-one solution for your relocation, including personal consultation, legal assistance, and much more. Discover how we simplify your international move and make it stress-free. Contact us today for a no-obligation consultation!
Planning your move to Georgia? Find out how GoMovin simplifies and makes your international relocation stress-free. From visa applications to finding accommodation, we are your partner for a successful start! Get personalized advice now!
Planning a move to Georgia? The country by the Black Sea entices with a unique combination of tax benefits, low cost of living, and a growing economy. At GoMovin, we understand that an international move can be a significant challenge. That's why we offer comprehensive support to make your new start in Georgia as smooth and stress-free as possible.
In recent years, Georgia has become an attractive destination for expatriates, particularly for entrepreneurs, freelancers, retirees, and IT specialists. The territorial taxation, low cost of living, and simple business setup are just a few reasons to consider a move. However, before you pack your bags, there are several things to consider. In this article, we provide an overview of the key aspects, from taxes and visas to property and living costs.
Our goal is to provide you with all the information you need to make an informed decision. We explain the complex tax regulations, show you how to obtain a residence permit, and offer tips for house hunting and starting a business. With GoMovin by your side, you can relax and enjoy your new phase of life in Georgia. Let's plan and execute your move to Georgia together!
Tax Advantages: Benefit from Georgia’s Territorial Taxation
Georgia offers an attractive tax system that is particularly interesting for expatriates. At its core is territorial taxation, where only income sourced from Georgian sources is taxed. This allows you, with proper structuring, to legally live tax-free in Georgia by deriving income from foreign companies. An important aspect is the avoidance of CFC rules (Controlled Foreign Company), which would apply if you exert control over a foreign company from Georgia.
In addition to territorial taxation, there are a number of special tax regulations that benefit specific groups and industries. These include the status as a “Small Business” with a tax rate of only 1% up to a turnover of 500,000 GEL, the status as a “Micro Business” which is tax-free up to a turnover of 30,000 GEL, as well as special regulations for IT companies in “Virtual Zones” and with “International Company Status” that allow for a corporate tax rate of 0-5%. More information on company formation can be found here.
To benefit from these tax advantages, it is important to obtain tax residency in Georgia. As a rule, the 183-day rule applies, requiring a physical presence of at least 183 days within a year. However, there is an exception for “High Net Worth Individuals” (HNWI), who can obtain tax residency without physical presence under certain conditions. The requirements for HNWI status are either an annual income of more than 200,000 GEL in the last three years or assets of more than 3 million GEL. Also, note that Georgia's non-participation in the OECD CRS (as of the end of 2022, planned participation from September 2023) impacts international tax transparency.
When planning your taxes, you should definitely avoid the “Boris Becker trap” of seeming representation. A genuine relocation with sufficient presence is crucial. Also, pay attention to substance creation to ensure recognition by foreign tax authorities. Additionally, be aware that a withholding tax of 10-15% may be applied to foreign services. We at GoMovin are happy to provide you with comprehensive advice on all tax aspects of your move to Georgia.
Visa & Residency: How to Secure Your Residence Permit in Georgia
For German citizens, entering Georgia is initially uncomplicated. EU citizens can enter visa-free for 360 days with a passport or ID card. However, it is advisable to use a passport when entering via third countries. If you plan to stay longer in Georgia, you will need a residence permit. There are various ways to obtain one.
One option is marriage to or kinship with a Georgian citizen. Another option is a real estate investment of at least 300,000 USD, which must be held for at least five years. For a work permit, your Georgian company must generate a turnover of 50,000 GEL per foreign employee. There are also short-term and long-term investment residence permits for property purchases starting from 100,000 USD and 300,000 USD respectively. Further information on applying for a residence permit can be found on the Federal Foreign Office website.
It is important to apply for the residence permit at the Public Service Hall after entering the country. Be aware of the consequences of not meeting the deadlines, such as fines and deportation. We at GoMovin support you through all steps of the visa application and help you find the right option for your individual situation. This way, you can approach your move to Georgia in a relaxed manner.
Enhance quality of life: How you can benefit from low costs in Georgia
A major advantage of Georgia is the low cost of living compared to Germany. You can expect to spend significantly less on rent, food, and leisure. The property prices are affordable, with high-quality properties costing around 1,000 €/sqm. For example, the utilities for an 85 sqm apartment are about 65 €. However, it is advisable to source your income from abroad as local salaries are lower. The cost of living is significantly lower than in Western Europe, with a family able to maintain a reasonable standard of living for about 2,000 EUR per month.
The healthcare system in Georgia is of a good standard, with private health insurance required for non-residents. However, these are affordable. There are also some considerations in the field of education. There is compulsory schooling up to the age of 16, and homeschooling is not permitted. Public schools teach in Georgian, but there are also international schools, such as the German School in Tbilisi, which costs around 5,000 €/year. The public schools teach in Georgian.
The banking sector in Georgia is straightforward. Opening a bank account is easy even for foreigners, though fees may apply. There are high interest rates on Lari savings accounts of around 12% annually. The banking sector enjoys high confidentiality. However, note that as of the end of 2022, Georgia has not yet participated in the OECD CRS, but participation is planned from September 2023. All these factors contribute to a high quality of life in Georgia. We at GoMovin help you settle in quickly and enjoy the benefits of your new life.
Setting up a company made easy: Take advantage of Georgia’s business-friendly environment
Georgia offers a business-friendly environment with straightforward processes and attractive tax regulations. Setting up a company is often possible within 3 hours, especially through authorised agents. The most common legal form is the Limited Liability Company (LLC), which is equivalent to the German GmbH and does not require a minimum capital.
There are various options for the corporate structure, including the IT LLC, which pays 0% tax on foreign IT income, the Free Zone Company, which also pays 0% tax, and Small Business, which pays 1% income tax up to an annual turnover of 500,000 GEL. Georgian companies can also open SEPA bank accounts, facilitating international transactions. Company formation offers options like a standard LLC (15% corporate tax on distribution and 5% dividend tax).
We at GoMovin support you in all steps of starting a business, from choosing the legal form to opening a bank account. This way, you can focus on your core business and benefit from the advantages of the Georgian market. With our help, your move to Georgia will be a success.
Smooth Transport: How to Successfully Move to Georgia
An important aspect of a move to Georgia is the transportation of your belongings. Here, individual moving solutions are required, combining different modes of transport such as truck, sea, air, and rail. It is essential to choose an experienced logistics partner with knowledge of Georgian import and export laws. The transport to Georgia is carried out by our forwarding agent reliably & flexibly.
The customs regulations and procedures must also be considered. Georgia is a member of the WTO, which means a transparent customs system. Nevertheless, specialized knowledge is required for smooth customs clearance. Important aspects of the move include documentation, organization, and, if necessary, storage. Transparent transport tracking is also important. The forwarding agent carries out transports to Georgia reliably & flexibly.
Please take note of special instructions, such as the importation of narcotics and psychotropic substances, which requires a permit. When importing cars, there is a 90-day period after which registration or extension is necessary. A Georgian liability insurance is mandatory for foreign vehicles. The export of cultural property requires a permit from the Ministry of Culture. There may also be retroactive taxation of imported goods, depending on the value. At GoMovin, we take care of all the details of your move and ensure a smooth process.
Leveraging the Benefits of Trade: A Focus on the EU-Georgia Free Trade Agreement
The EU-Georgia Free Trade Agreement (DCFTA) offers a range of benefits for companies operating in Georgia or wishing to export there. These include tariff-free trade and trade facilitation, such as the elimination of most tariffs, improved customs procedures, and the harmonisation of Georgian laws with EU standards. The EU and Georgia signed an Association Agreement in June 2014, which came into effect in July 2016.
There are certain export and import requirements to be aware of. EU companies can export to Georgia with a valid customs declaration and, if necessary, an export licence. Georgian companies must be registered in Georgia to export to the EU. For agricultural products, there are specific regulations, such as no tariff quotas (exceptions for sensitive goods to the EU), an entry price system for certain fruits and vegetables, as well as a safeguard clause for processed agricultural products. The EU-Georgia Free Trade Agreement (DCFTA) is an integral part of the Association Agreement.
Additionally, technical standards and compliance are important. Georgia aligns its technical standards with the EU and is a member of the Rotterdam and Stockholm Conventions. In the area of intellectual property and services, there is protection for trademarks and copyrights as well as equal treatment for EU service providers. EU companies and self-employed individuals enjoy the right of establishment. In the field of public procurement, there is mutual access to public procurement markets, as well as transparent procedures and dispute settlement mechanisms. We at GoMovin help you make the most of the benefits of the Free Trade Agreement.
Conclusion: With GoMovin, your move to Georgia will succeed
A move to Georgia can be a rewarding decision if you wish to benefit from the tax advantages, low living costs, and business-friendly environment. However, it is important to prepare thoroughly and plan all aspects carefully. Georgia offers unique opportunities for entrepreneurs, particularly in the IT sector, due to its territorial tax system, where foreign income is tax-free. A significant advantage is the status as a "Virtual Zone Person," which allows IT companies with at least one Georgian employee to pay only 5% tax on profits from foreign supplies.
The tax benefits and territorial taxation are attractive, as are the low living costs and property prices, as well as the ease of starting a business and opening a bank account. Key aspects of planning include the residence permit and visa regulations, cultural differences and integration, as well as logistics and relocation.
We at GoMovin recommend thorough planning and preparation as well as professional advice on tax and legal matters. Consider your individual needs and goals. With our support, your move to Georgia will be a success. Contact us today for personalised advice and let's plan your new start together! We simplify the relocation process and make international relocation stress-free, efficient, and personalised. Get in touch now!
Further useful links
The Auswärtige Amt offers travel and security advice for Georgia, including information on applying for a residence permit.
The EU Commission provides information about the EU-Georgia Free Trade Agreement (DCFTA) and its benefits for businesses.
The German Federal Ministry of Finance provides a list of double taxation agreements that may be relevant for the tax situation in Georgia.
The Georgian Statistics Office offers current economic data and statistics on Georgia.
The World Bank provides information on the business conditions in Georgia.
FAQ
What tax benefits does Georgia offer for expatriates?
Georgia offers a territorial taxation system, taxing only income sourced from Georgia. This potentially enables a tax-free lifestyle if income is derived from foreign businesses. Special regulations apply for IT companies and Small Businesses.
How do I obtain a residence permit in Georgia?
EU citizens can enter visa-free for 360 days. For a longer stay, a residence permit can be obtained through marriage, real estate investment (at least 300,000 USD), or a work permit.
What are the living costs in Georgia?
The living costs in Georgia are significantly lower than in Germany. Utility costs for an 85 square meter apartment are approximately 65 €. A family can maintain an adequate standard of living with about 2,000 EUR per month.
How easy is it to start a business in Georgia?
Starting a business in Georgia is straightforward and often possible within 3 hours. The most common legal form is the Limited Liability Company (LLC), which is equivalent to a German GmbH.
What transportation options are there for my move to Georgia?
There are various transport options for moving to Georgia, such as road, sea, air, and rail. It is essential to choose an experienced logistics partner familiar with Georgian import and export laws.
What are the benefits of the EU-Georgia Free Trade Agreement?
The EU-Georgia Free Trade Agreement (DCFTA) offers duty-free access and trade facilitation, including the removal of most tariffs and the alignment of Georgian laws with EU standards.
What must I consider when importing medicines and cars?
The import of narcotic and psychotropic substances requires a permit. For importing cars, a 90-day period applies, after which registration or an extension is necessary.
What risks should be considered when moving to Georgia?
One should avoid the “Boris Becker trap” of sham representation and ensure a real move with sufficient presence. Additionally, consider building substance to achieve recognition by foreign tax authorities.
