Georgia LLC: 1% Tax on IT Services via the Virtual Zone
Georgia's Virtual Zone status gives qualifying IT companies a 1% effective tax rate on foreign-sourced income. Fast incorporation, low costs, and a strong banking infrastructure.
Who this is for
- IT and software companies looking for a low-tax jurisdiction in Europe/Caucasus
- Tech freelancers and developers wanting to incorporate with a 1% effective tax rate
- Digital nomads already using Georgia's 'Remotely from Georgia' program
- Founders wanting fast, affordable company formation with EU-adjacent banking
Georgian government registration fees (~$50–$100) are included. Bank account assistance is included.
Form a Georgia CompanyWhat's included
- Georgia LLC (Shps) registration with the National Agency of Public Registry
- Virtual Zone status application for qualifying IT companies
- Registered address in Georgia (1 year)
- Corporate documents and certificate of registration
- Bank account opening support (TBC Bank or Bank of Georgia)
- Dashboard tracking throughout
How it works
Entity and Virtual Zone eligibility confirmed
We confirm your business activity qualifies for Virtual Zone status (IT services to foreign clients).
LLC incorporated
Registered with the National Agency of Public Registry. Typically 1–3 business days.
Virtual Zone status granted
Applied separately from incorporation; granted by the Revenue Service of Georgia.
Bank account opened
We assist with TBC Bank or Bank of Georgia account opening in Tbilisi.
Frequently asked questions
What is Georgia's Virtual Zone?
The Virtual Zone is a Georgian tax status for IT companies that supply services exclusively to clients outside Georgia. Qualifying companies pay 0% Georgian corporate tax on those foreign-sourced IT revenues, plus a 5% dividend distribution tax – an effective rate of ~1% on profits distributed.
What activities qualify for Virtual Zone?
Software development, IT consulting, SaaS, cybersecurity, and similar technology services provided to foreign clients typically qualify. Retail, trading, and non-IT services do not.
Do I need to be in Georgia to incorporate?
You can prepare the paperwork remotely, but for most banks in Georgia you will need to be present in person to open an account. The incorporation itself can be done via power of attorney.
Is Georgia in the EU?
No. Georgia is an independent country in the South Caucasus. It is not an EU member, but has an Association Agreement with the EU and EU candidate status applied for in 2022.
Ready to get started?
Fixed price, real-time tracking, and expert handling, from first document to final approval.
Form a Georgia Company