Service · Georgia
Virtual Zone status for IT companies in Georgia
A Georgian company with Virtual Zone status pays 0% corporate tax on profit from IT services it sells to clients abroad. We set up the company, obtain the status and keep it compliant.
What Virtual Zone status is
Under Article 99 of the Georgian Tax Code, a Georgian company can be certified as a Virtual Zone Person by the Ministry of Finance. Profit from qualifying IT services supplied from Georgia to non-resident clients is then exempt from corporate income tax. Qualifying services include software development, maintenance and support, and licensing of software developed in Georgia. Any other income is taxed under the standard rules: 15% on distributed profit. See company registration in Georgia.
Taxes at a glance
| Tax | Rate |
|---|---|
| Corporate tax on qualifying IT income | 0% |
| Corporate tax on other income | 15% on distributed profit |
| Dividend withholding tax | 5%, which a tax treaty can reduce |
| Employee income tax | 20%, plus pension contributions of 2% from the employee and 2% from the employer |
| VAT | Services to foreign clients are usually outside Georgian VAT; registration is required above GEL 100,000 of taxable turnover in 12 months |
Conditions
- The IT work must actually be carried out in Georgia
- Delivery to non-resident clients must be verifiable through contracts, invoices and payments
- The status can be revoked if the conditions are not met
How to obtain it
- Register a Georgian LLC (usually one business day)
- Apply electronically for Virtual Zone status
- The application is reviewed in about 10 working days, and an electronic certificate follows approval
Virtual Zone or International Company?
| Virtual Zone Person | International Company | |
|---|---|---|
| Corporate tax | 0% on qualifying IT income | 5% |
| Tax on salaries | 20% | 5% |
| Dividends | 5% | 0% |
| Key requirement | IT services supplied to non-residents | Two years of relevant experience and local staff |
Which regime works better depends on the size of your payroll and on whether you plan to distribute profits. We model both with your numbers before you choose.
How we help
- Compare Virtual Zone and International Company status using your figures
- Register the company and apply for the status
- Open the corporate bank account
- Set up contracts, invoicing and accounting that support the exemption
Frequently asked questions
Can a foreign-owned company get Virtual Zone status?
Yes. The status is granted to a Georgian company, and Georgian companies can be 100% foreign-owned.
Do my clients have to be outside Georgia?
Yes. The 0% rate applies to profit from IT services supplied to non-resident clients. Other income is taxed normally.
Are dividends from a Virtual Zone company tax-free?
No. Dividends are subject to 5% withholding tax, which a tax treaty can reduce.
How long does it take to get the status?
About 10 working days after the application, once the company itself is registered.
Discuss your case
Tell us what you are planning. The first call is confidential.
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Information current as of September 2026. It is general information, not legal or tax advice.