Georgia's 1% tax
The 1% tax for freelancers in Georgia: Individual Entrepreneur registration with Small Business Status, done properly
The 1% tax for freelancers in Georgia is real. A registered Individual Entrepreneur with Small Business Status pays 1% of turnover up to GEL 500,000 a year instead of 20% on profit. It is also conditional: a list of activities is excluded, consulting among them, and the status is granted on the facts of what you do. Trustlex registers you, confirms the classification in writing and sets up the monthly filing.
This route fits you if
- You bill clients in your own name: design, development, writing, marketing execution, trades, teaching.
- Your turnover stays under GEL 500,000 a year (about €175,000 at 2026 rates).
- Your activity is not on the excluded list, or you are willing to confirm the classification first.
- Your clients accept invoices from an individual entrepreneur rather than a company.
- You accept that an individual entrepreneur is personally liable: the 1% is a tax benefit, not a liability shield.
Take another route if
- Your work is consulting or advisory, or a medical, legal, architectural, notarial, gambling, currency-exchange or licensed activity. These are excluded from the regime; a company is the usual answer. Register a company
- You need limited liability, several owners or a corporate counterparty for enterprise clients. See the LLC route
- You are building software for export and want Virtual Zone status: that regime is for companies, not individuals. See Virtual Zone
Itemised
What the 1% set-up costs
The registration is inexpensive. The value is in getting the classification right before the first invoice.
| Individual Entrepreneur registration with Small Business Status assessmentPublic Registry filing, activity classification check, application prepared | From €180 |
| Tax registration and Small Business Status applicationRevenue Service profile, status request, confirmation that the status is active before you invoice; part of the registration fee | Included |
| VAT at 18% on Trustlex service feesCharged on Trustlex work only, never on state fees | 18% |
| Public Registry fee for the registrationPassed through without margin | at cost |
| Monthly bookkeeping and the 1% declarationOptional. Small Business Status filers declare and pay monthly | From €110 / month |
Prices from the Trustlex price list of 2026-10-14.1. Remote registration under a power of attorney adds the notary, courier and identity lines shown on the company registration page.
How it works
- 1
Classification check
We confirm that your activity is not on the excluded list and record the activity code in writing. Software delivered as a product is often eligible; advice is not. Getting this wrong risks a reassessment at 20% on the whole turnover.
- 2
Individual Entrepreneur registration
Filed at the Public Registry, in person or under a power of attorney. The registration creates the legal form; the tax status comes next.
- 3
Tax registration and the status application
Revenue Service profile and the Small Business Status request. Since 2026 the status takes effect from the day the request is submitted. We confirm it shows as active before you issue an invoice at 1%.
- 4
Invoicing and monthly declarations
Small Business Status filers declare and pay monthly. We set up the routine or handle it under the bookkeeping plan.
- 5
Two thresholds watched
GEL 500,000 of annual turnover, after which 3% applies from the start of the month in which it is passed until the end of the year, and exceeding it in each of two calendar years ends the status (confirm how the two years are counted); and GEL 100,000 in any rolling twelve months, above which VAT registration is mandatory regardless of the 1%.
What you need
- Your passport
- A registration address in Georgia: yours, or the Trustlex address
- A plain description of what you do and who pays you
- For remote registration: a notarised, apostilled power of attorney
Since 1 March 2026 a foreign national who carries out activity in Georgia as an individual entrepreneur needs a right-to-work authorisation unless an exemption applies, and in practice banks ask for it when opening the related account. Plan the compliance file, not only the tax rate.
Questions freelancers ask about Georgia's 1% tax
Is it 1% of profit?
No. It is 1% of gross turnover. Expenses are irrelevant to the calculation, which is why it suits low-cost service work and not trading with thin margins.
What happens above GEL 500,000?
As the Tax Code reads at the time of writing, 3% applies from the start of the month in which the cap is passed until the end of that year, on all turnover of those months and not only on the excess. Exceed the cap in each of two calendar years and the status is cancelled from the start of the following year; confirm how the two years are counted.
Does the 1% cover VAT?
No. VAT is a separate clock. Registration becomes mandatory once taxable turnover passes GEL 100,000 in any rolling twelve-month period, even while the 1% status is held.
Can a non-resident register?
Yes. Georgian citizenship or residence is not required. Since 1 March 2026 a foreign national working in Georgia as an individual entrepreneur needs a right-to-work authorisation unless an exemption applies, and banks may ask for it.
When does the 1% start?
Under the 2026 rule the status takes effect from the date the request is submitted to the Revenue Service. Income earned before the status is active is taxed under the ordinary rules.
Is consulting really excluded?
Yes, consulting is a named exclusion. Whether your work is advice or a delivered product is a classification question to resolve in writing before you register, not after a reassessment.
General information, not legal or tax advice. Fees reflect the Trustlex price list of 2026-10-14.1; rates, thresholds and registry practice reflect September 2026 and change. The route for your case is confirmed by a lawyer at review.
Read before you start
Get the 1% right from the first invoice
Start the application, or book a call and a lawyer will tell you whether your activity qualifies before you pay anything.