Georgia (Sakartvelo) has become one of the most contractor-friendly countries in the region: a registered Individual Entrepreneur with Small Business Status pays just 1% of turnover, setup takes about a day and is open to foreigners without a residence permit, and there are no currency controls. That combination made it a magnet for relocated CIS tech talent — and it makes engagements unusually clean, as long as the relationship is genuinely independent.
The 1% IE model — and where it can break
A Georgian Individual Entrepreneur can obtain Small Business Status and pay 1% of gross turnover up to GEL 500,000/year (the in-year excess is taxed at 3%); without the status, an IE pays 20% of net profit. There is a separate Micro Business Status (0% up to GEL 30,000, no employees) that rarely fits a well-paid contractor. VAT registration is mandatory above GEL 100,000 turnover, but services supplied to non-residents are generally outside Georgian VAT and don’t count toward that threshold — so most export-facing IEs never hit VAT (ge.andersen.com; expathub.ge, checked 2026-07-16). Note that certain professional activities are excluded from Small Business Status, so confirm the contractor’s specific activity code on rs.ge.
Reclassification risk here is real but softer than in the EU: enforcement runs mainly through the Revenue Service on tax audit, which can recharacterise an IE arrangement as employment when the substance is employment — a single foreign client, an open-ended monthly retainer, client-set hours and tools. Genuinely independent, multi-client, project-scoped work is low-risk.
What to put in the contract
- A written services agreement with the IE, scoped to deliverables, rate and currency.
- IP assignment in writing. Under the Law on Copyright and Related Rights, economic rights transfer only by written agreement, and moral rights stay with the author; even the software rule that favours employers applies to employees, not contractors. Assign economic rights explicitly.
- Independence markers: contractor’s own tools, own schedule, right to serve other clients.
Taxes and paperwork
The contractor’s side. Register as an IE, obtain Small Business Status, file a monthly turnover declaration on rs.ge, pay 1%. The funded pension is voluntary for the self-employed; there’s no other mandatory social contribution.
The client’s side. Pay gross against invoices; no Georgian withholding for a foreign client. US payers collect a W-8BEN and file no 1099. Keep contract + invoices.
How to pay contractors in Georgia
| Method | What the contractor sees | Notes |
|---|---|---|
| SWIFT to GEL/FX account | USD/EUR to a TBC or Bank of Georgia account | The standard; contractor converts to GEL as needed at the NBG rate |
| Wise | Transfer at mid-market FX | Widely used for USD/EUR |
| Payoneer | USD/EUR balance, local withdrawal | Common among Georgian freelancers |
Georgia’s FX regime is notably liberal: no currency controls, no forced conversion, and inbound foreign payments generally need no reporting. Domestic settlement, though, must be in GEL.
Platforms that cover Georgian contractors
We haven’t verified each provider’s Georgia page individually, so treat this as coverage from our rating rather than a per-country guarantee — confirm the current state on the provider’s own site. Broad global platforms (Deel, Payoneer, Wise) cover Georgia; CIS-focused payout tools (Mellow, Solar Staff, EasyStaff, 4dev.com) are built for exactly this relocated-talent corridor. Full field: contractor payouts rating and contractor management rating.
Contractor of Record in Georgia
Because the 1% IE model is so cheap and clean, a Contractor of Record buys less legal-risk transfer here than in strict-enforcement markets — and more operational convenience across a large contractor pool: onboarding, invoice collection, currency handling and an independence check before the Revenue Service runs one. For engagements that are really jobs (your hours, your tools, core work), convert via EOR instead. Compare providers in our COR rating.