Georgia to Introduce New Residence Permit for IT Professionals: What the Reform Means

A new legislative initiative submitted to the Georgian Parliament proposes introducing a special category of residence permits for IT specialists. The ruling Georgian Dream party has initiated an accelerated review of the proposal, according to 1TV.ge.

Who Will Qualify?

According to the draft law, several categories of foreign nationals will be eligible for the new residence permit:

IT employees officially registered with Georgia’s Ministry of Health;

Individual entrepreneurs in IT registered as small businesses, provided their activity is on a government-approved list;

Authorized representatives of international IT companies operating in Georgia.

Family members of the applicants will also be eligible. Company representatives must meet additional criteria: documented proof of delegation, at least two years of experience in the IT sector, and an annual income of at least $25,000.

The permit will initially be issued for three years, with the possibility of renewal for another three. The total period of continuous stay under this status cannot exceed 12 years. This reform aims to legally support long-term foreign IT professionals living and working in Georgia.

Residency Rules and Financial Expectations

A key requirement is physical presence. The permit may be revoked if the holder resides in Georgia for fewer than 183 days in any 12-month period. Medical absences are the only exception for now.

The explanatory note projects a significant fiscal impact. If approved, international IT companies could contribute up to ₾490 million ($180+ million) in income taxes over three years—3.6 times more than current projections.

For small-business IT entrepreneurs, tax revenue is expected to rise 33%, from ₾119.9 million to ₾159.6 million. The number of IT professionals employed by international firms in Georgia could reach 24,000, with an estimated ₾6.5 billion in domestic spending over five years. The program could grow to 100,000 participants, generating ₾24 billion in total economic activity.

Existing Incentives and Digital Zones

Georgia already offers a preferential tax regime for international companies involved in software development, maintenance, and web services. Corporate and income tax rates can drop to 5%, with no tax on dividends or property. Local salaries and R&D expenses can also be deducted from the tax base.

In the Virtual Zone regime, IT businesses pay 0% corporate tax and 0% VAT, while dividend tax is capped at 5%. Personal income tax for employees remains at 20%. Since 2022, companies can qualify if their shareholders are Georgian tax residents, and they may use independent contractors. Even software developed prior to obtaining the status is now considered eligible.

Small business entrepreneurs can enjoy a tax rate of just 1% if their annual turnover falls within the prescribed limits.

Georgia’s Tech Hub Ambitions

Proponents of the new law emphasize that these changes are designed to increase tax revenues and strengthen Georgia's status as a regional technology hub. The reform provides long-term incentives for skilled immigration, legal certainty for professionals, and a more competitive business environment.