Is remote work done from Georgia for a foreign employer or clients taxed in Georgia?

Checked on 2026-10-25

The Tax Code of Georgia treats income from employment in Georgia, and from services actually rendered in Georgia, as Georgian-source income, wherever the money is paid. Georgian-source income isn't covered by the foreign-income exemption. The general income tax rate is 20%. A foreign employer without a Georgian permanent establishment doesn't withhold it, so you file yourself.

Key facts

What	The law says	Source
Salary	Income earned from employment in Georgia is Georgian-source	Tax Code, art. 104(1)(a)
Freelance or contract services	Services actually rendered in Georgia are Georgian-source	Tax Code, art. 104(1)(c.a)
Georgian resident serving a foreign client	Georgian-source when provider and recipient are in different states and the provider is a Georgian resident, unless delivered through a permanent establishment abroad that confirms it	Tax Code, art. 104(1)(c.g)
Paid into a foreign account	The place of receipt is not taken into account	Tax Code, art. 104(2)
Foreign-income exemption	Covers only a resident’s income that is not Georgian-source	Tax Code, art. 82(1)(u)
Rate	20%, unless the Code provides otherwise	Tax Code, art. 81(1)
Foreign employer	No withholding at source on salary paid by a non-resident when the cost isn’t attributed to a Georgian permanent establishment	Tax Code, art. 154(1)(a.b)
Filing	Resident individuals whose income is not taxed at source file by 1 April of the next year	Tax Code, art. 153(1)(a)
Non-residents	Also pay income tax on Georgian-source income	Tax Code, art. 79(b)

What the law looks at

The Tax Code doesn’t mention remote work by name. It decides by the source of income in Article 104. Income from “employment in Georgia” and income from services “actually rendered in Georgia” are Georgian-source income. For services there is a second rule: when the provider and the client are in different states and the provider is a Georgian resident, the services are Georgian-source too, unless the provider works through a permanent establishment in another country that confirms the services were delivered there.

Article 104(2) says the place where you receive the money doesn’t matter. A foreign client paying into a foreign bank account doesn’t change the source.

The exemption for foreign income in Article 82(1)(u) only covers income that is not Georgian-source, so it doesn’t apply to income that Article 104 treats as Georgian-source.

How the tax is paid

The general rate for individuals is 20% (art. 81(1)). A Georgian employer withholds tax from salary. A non-resident employer doesn’t, when the salary isn’t an expense of its permanent establishment in Georgia (art. 154(1)(a.b)). Resident individuals whose income isn’t taxed at source must file an income tax return by 1 April of the following year (art. 153(1)(a)).

Small business status: an entrepreneur natural person (individual entrepreneur) can apply for small business status and pay 1% on Georgian-source income other than salary, rising to 3% above GEL 500 000 of gross income in a calendar year (Tax Code, arts. 88–90).
Tax residency: the 183-day test is in Tax Code art. 34(2).

Sources

Tax Code of Georgia, No 3591 of 17 September 2010, arts. 79, 81, 82, 90, 104, 153 and 154 (consolidated English text, Legislative Herald of Georgia, matsne.gov.ge) checked 2026-10-25

Change history

2026-10-25: Page created

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