Enquiries about Georgia have increased noticeably over recent months. The reasons rarely lie in any single factor, but in a combination of location, residence rules and economic conditions.
Stay without a visa. Nationals of numerous countries, including Germany, Austria and Switzerland, may currently stay in Georgia for up to one year without a visa. This makes it possible to try the location out before deciding on a change of residence. The rules may change; what matters is the position applicable at the time of entry.
Located between two economic areas. Georgia lies between Europe, the Caucasus and Central Asia. For businesses with trade or service relationships in both directions, this can be significant in logistical and organisational terms.
Tax environment. As a general rule, corporate income tax in Georgia falls due only upon the distribution of profits. Net wealth tax and inheritance tax are currently not levied. Special provisions exist for smaller businesses, the requirements of which need to be examined in the individual case. Position as at October 2026.
Cost of living. Costs for housing, services and day-to-day living are comparatively low. The property market is active, particularly in Tbilisi and Batumi.
What is regularly overlooked
In the conversations we have, the difficult part almost never lies in Georgia. It lies in Germany.
A change of residence does not automatically end German tax liability. Depending on the starting position, exit taxation on shareholdings in corporations, extended limited tax liability, controlled foreign company taxation or the question of a continuing permanent establishment may be affected. In addition, the double taxation treaty between Germany and Georgia will need to be applied.
These are the points that determine whether a structure holds up. They can be examined in advance — correcting them after the fact is considerably more onerous.
And what may speak against the location
A complete picture also includes what does not speak in Georgia’s favour.
The political and regulatory environment has changed over recent years. The relationship with the European Union remains the subject of ongoing debate, and the course of the rapprochement process is open. For long-term decisions, developments should be monitored and factored into planning.
There are practical points as well: opening a bank account requires careful preparation, and approval cannot be guaranteed. Compliance checks and evidence of the source of funds are now standard. Legal enforcement and administrative procedures follow their own rules, which differ from those you may be accustomed to.
Georgia is not a location that opens up by itself. Those who choose it without preparation pay for the learning curve later.
How we proceed
We begin not with a recommendation, but with an assessment. We examine your personal and business starting position, identify the points that should be clarified before a decision is taken, and will also tell you if Georgia is not the right location for your plans.
Should the decision fall in favour of Georgia, we coordinate the implementation — from the corporate structure through registration and banking to ongoing accounting, together with our partners in Tbilisi.
The initial consultation is without obligation and free of charge. No attorney-client relationship arises as a result.
This article provides a general overview and does not replace an examination of the individual case. The rules described are subject to change. Position as at October 2026. The German version of this text is authoritative.
