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Georgia Virtual Zone & International Company Status: 0% Tax on IT Services

How global software companies and tech founders utilize Georgia's tax incentives for cross-border software export.

Georgia Virtual Zone & International Company Status: 0% Tax on IT Services

Georgia as a Premier Eurasian Tech Haven

Over recent years, Georgia has transformed into one of the most attractive destinations in Eurasia for software companies, IT consultancies, and digital agencies. Strategic government tax incentives combined with an Estonian-style distributed profit tax model create exceptional operational leverage.

Founders can select between two premier tax regimes depending on their operational scale.

Virtual Zone Person (VZP) vs International Company Status (ICS)

  • Virtual Zone Person: Tailored for small to mid-sized software creators exporting software outside Georgia. Benefits include 0% Corporate Income Tax (CIT) on foreign revenues and 0% VAT on international digital exports. Dividends are taxed at a flat 5%.
  • International Company Status (ICS): Designed for institutional IT enterprises with physical substance in Georgia. Benefits include a reduced 5% Corporate Income Tax, 5% Personal Income Tax on employee salaries (reduced from standard 20%), and 0% dividend distribution tax.

Fast Digital Registration

LLC incorporation in Tbilisi takes as little as 24 to 48 hours with minimal statutory capital requirements, making Georgia an agile vehicle for modern tech scaling.

This material is for general information only and is not legal, tax or investment advice.

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