Published by Bookkeeping.ge — Assio Lex and Associates LLC
Updated
International tax and business in Georgia
Hiring a foreign employee or working as a foreign entrepreneur in Georgia now needs a 2026 review of work authorisation alongside payroll and tax. Bookkeeping.ge helps businesses connect the current rules with their contracts, employee records and monthly accounting.
Discuss your team’s requirements
What changed in 2026?
The right-to-work framework took effect on 1 March 2026 for covered foreign employees and self-employed foreigners. The law was amended again in April and June 2026, adding important exceptions. An early-2026 summary may therefore no longer describe every arrangement correctly.
Local employers apply for covered employees; covered self-employed foreigners apply for themselves. Work authorisation and the appropriate immigration route are distinct from business registration. Visa-free entry or Individual Entrepreneur registration alone does not settle the work-authorisation question.
Which arrangements need attention?
| Situation | Starting point for review | Records to organise |
|---|---|---|
| Foreign employee working in Georgia for a local employer | Right to work and immigration position, unless an exception applies | Contract, duties, work location and residence status |
| Foreign entrepreneur serving local clients | Self-employment rules and applicable exceptions | Client contracts, activities and immigration documents |
| Services to a non-resident for its activities outside Georgia | A specific statutory exception may apply | Recipient identity, contract and evidence of the overseas activity |
| Work performed wholly remotely abroad for a local employer | A specific exception covers work requiring no entry into Georgia | Location, employment terms and travel arrangements |
| Company director or manager | Check the enterprise category and the actual role | Appointment, responsibilities and company-category evidence |
Important exceptions in the current law
The law excludes specified arrangements, including services for a non-resident connected with its activities outside Georgia, fully remote work for a local employer that requires no entry into Georgia, and qualifying management or governing roles at Category I, II or III enterprises. Other exceptions include valid investment residence permits and specified protected statuses. The framework concerns foreigners without permanent residence.
Match the exception to the actual arrangement. A foreign-owned Georgian LLC is not automatically a non-resident customer, and a Category IV company director is not included merely because larger-enterprise management is mentioned. Mixed local and overseas work should be reviewed together.
Transition to 1 January 2027
A specific transition applies to labour immigrants with active Ministry registration on 1 March 2026: the required right-to-work and residence position must be arranged by 1 January 2027. This is not a blanket extension for every foreign entrepreneur.
For businesses reviewing their position in October 2026, identify any team member relying on the transition and keep the qualifying registration evidence. Set a practical timetable for collecting documents and completing the required steps before year end.
Keep work authorisation and tax treatment connected
A work-authorisation exception does not determine the source of income or create an income-tax exemption. Services for an overseas client can still require Georgian tax reporting. The tax review follows the actual activity, residence, income classification and any applicable special status or treaty.
Likewise, permission to work does not choose the correct business structure. An employee, an individual entrepreneur and a company owner can have different reporting arrangements. Use the tax residency and foreign income guide and Small Business Status checks alongside the legal review.
Payroll records for a foreign employee
- Employment agreement, role, start date and work location.
- Evidence supporting the work-authorisation route or exception relied on.
- Gross salary, currency and the agreed payment timetable.
- Leave, bonuses, benefits and any expense reimbursements.
- Tax treatment, treaty questions and pension-participation assessment.
- Payroll declaration, payment and filing-confirmation records.
Standard salary income is generally subject to 20% income tax, while an eligible special regime can change the treatment. Pension participation also needs a separate eligibility check; it should not be assumed that every foreign worker has the same pension position.
Our payroll and withholding service covers the recurring accounting process. The legal team can address the work-authorisation and contract questions feeding that process.
A practical onboarding process
Describe the work
Write down who receives the work, where it is performed and who directs it. Include local customers, overseas customers and management duties rather than relying on a broad job title.
Establish the legal route
Review the worker’s status and the arrangement against the current law. Record the reason for the route chosen and the documents needed to support it. Where an application is required, assign responsibility for preparing and following it.
Set up accounting and payroll
Connect the start date, contract, remuneration and tax treatment with the payroll calendar. Keep the accountant informed of a move between countries, a change of customer or an additional local role.
Review changes during the year
A new local client or a different management role may change the facts underlying an earlier assessment. Keep legal and accounting records aligned when the working arrangement changes.
Support for international teams in Georgia
Assio Lex and Associates LLC combines accounting and tax compliance with legal support. We can help organise the work-authorisation review, employment records, payroll setup and recurring tax reporting for a foreign-owned Georgian business.
Tell us the worker’s role, location, current residence status, employer or customers and intended start date. For an existing team, a simple employee-and-contractor register is a useful first step. Company accounting packages can be compared through our monthly fee calculator.
Foreign worker questions
Does every foreign freelancer now need the same work permit?
No. The current law includes specific exceptions. The recipient, location and nature of the activity matter, so review the actual client arrangement.
Does a foreign shareholder make a Georgian company an overseas employer?
No. Identify the legal employer or customer and the place of activity. Ownership alone does not answer the work-authorisation question.
Does an exception also remove Georgian tax reporting?
No. The work-authorisation and tax reviews address separate obligations. Keep the accounting treatment supported by the income and residence facts.