Registering as an individual entrepreneur in Georgia and working legally from Batumi are related, but distinct matters. Registration establishes your business status, the tax regime requires a separate application, and immigration requirements depend on the nature of your work and your legal grounds for stay. The 1% tax rate is not available to every professional or for every type of income.
Before committing to a long-term lease or buying an apartment in Batumi, review your client contracts and projected expenses. Your living space needs to be practical for daily work, and your chosen legal setup must accurately reflect the services you provide. The regulations and official state fees below were verified on September 11, 2026.
Registration, Taxes, and the Right to Work Serve Different Purposes
Individual entrepreneur status, small business status, and your legal grounds for residency do not substitute for one another. The easiest way to verify them is by looking at what each specific registration actually grants.
| Area | What Needs to Be Verified |
|---|---|
| Sole Proprietorship Registration | An entry in the entrepreneurial register with accurate personal details and a legal address. |
| Small Business Status | The granted tax status, its effective date, and whether your services are eligible. |
| Right to Work and Reside | The applicability of migration law, required legal grounds, or a specific exemption. |
For remote professionals, an exemption under the applicable labor migration law is essential. It applies to work performed or services provided to a non-resident, provided they relate to that non-resident’s activities outside of Georgia. Both conditions are crucial. Getting paid in foreign currency or having “freelancer” in your profile does not, on its own, prove you qualify for the exemption.
Self-employed foreign nationals covered by this law are subject to separate work authorization requirements and must hold a work residence permit, a D1 visa, or another legally recognized residence permit. You must apply for this authorization yourself; registering as an individual entrepreneur does not automatically grant a residence permit. Permanent residence status and other exemptions are assessed separately.
Start by outlining the facts: where you are based, who your client is, what services you provide, and how they relate to the client’s operations. Taking on a different client or offering services locally may require a reassessment. Keep in mind that an immigration exemption does not mean a tax exemption.
Preparing for Sole Proprietorship Registration
Foreign nationals need an application and a valid government-issued ID. The application must include your name, legal address, identification details, and signature. Before applying, verify the registrar’s specific requirements regarding your ID document, certified translation, and signing procedure.
A legal address is an official mailing address, not just a pin on a map. You must secure proper written consent from the property owner or provide a recognized legal basis for use. Living in a rented apartment does not automatically mean the landlord consents to registering a business at that address.
According to the National Agency of Public Registry fee schedule, registering a sole proprietorship takes one business day for 26 GEL, or 75 GEL for same-day processing. An extract in English costs an additional 26 GEL. Translation expenses, address fees, and legal representative services are not included in these amounts.
If you plan to register as an individual entrepreneur in Georgia remotely, first confirm whether the chosen procedure is available for your specific document and status. While NAPR offers a Smart Contract service, its existence does not mean that every foreign applicant can use it without meeting additional conditions. If working through a power of attorney, clarify the representative’s scope of authority and how the final documents will be delivered.
When Small Business Tax Status Is Available
Small business status must be granted separately by the Revenue Service. Before billing clients under the preferential rate, verify the date your status takes effect and which revenue streams are covered. An entrepreneur registration entry in the public registry does not verify your tax rate.
A job title is no substitute for an accurate description of your services. The Revenue Service’s guidelines list consulting, auditing, medical, architectural, legal, and notary activities among the prohibited categories for small business status. Therefore, broad labels like “IT” or “online work” are not enough. Software development and management consulting require different classifications; your contract must reflect the actual work performed.
Under the Tax Code of Georgia, qualifying taxable income under the small business regime is taxed at 1%. If total gross income from economic activity exceeds the standard threshold of 500,000 GEL within a calendar year, the tax rate increases to 3% starting from the month of the excess through the end of that year. This 3% rate applies to all income from that point, not just the amount above the threshold.
Employment salary is excluded from small business income under this regime. Do not disguise an employment relationship as a contractor agreement simply to pay less tax. If you offer mixed services or receive different types of income, determine in advance which revenues qualify for the special regime and which must be taxed separately.
What to Consider Regarding Tax Filings and Thresholds
Small business tax returns are filed monthly, and taxes must be paid no later than the 15th of the following month. Keep a ledger and retain all contracts, invoices, proof of service delivery, and bank statements. It is best to consult an accountant before your first reporting period to establish how you will report foreign currency earnings and handle adjustments.
Do not confuse the small business threshold with VAT. For standard mandatory VAT registration, the tax code sets a threshold of 100,000 GEL in taxable transactions across any continuous 12-calendar-month period. Whether your services count toward this threshold depends, among other factors, on the place-of-supply rules. Having a foreign client does not automatically exempt all incoming payments from this assessment.
Track your days of physical presence separately. Under Georgia’s general tax residency rule, an individual becomes a tax resident if present in the country for 183 days or more in any continuous 12-calendar-month period ending in the relevant tax year. Meeting this threshold does not automatically grant small business status or a residence permit. If you are relocating, be sure to also review any ongoing tax obligations in your previous country of residence.
Setting Up Contracts and a Bank Account
Banks require a clear explanation of your business activities: what you do, who your clients are, which countries they operate in, and what amounts and currencies you expect to receive. Prepare your service contracts and sample invoices. Being registered as an individual entrepreneur does not guarantee that a bank will open an account or accept any given international transfer.
Before updating payment details in your contracts, confirm the bank’s business account terms, supported currencies, and permitted incoming payment routes. Double-check that your name and registration details match across your contracts, invoices, and bank statements. Always keep documentation for one-off large transactions and refunds so you don’t have to piece them together from message histories later.
Maintain full control of your Revenue Service portal, banking apps, and verification phone number. If you hire an accountant, clearly agree on who submits filings, who verifies the calculations, and where records are stored. After each filing, obtain a copy of the submission and verify the assessed tax balance.
How to Choose an Apartment for Remote Work in Batumi
Inspect the apartment during the hours you usually work. Test the home internet with a video call, verify your mobile data coverage as a backup, and check the street noise with windows both open and closed. Find out if there is ongoing renovation work inside the building or nearby. A sea view tells you nothing about how suitable the space is for professional meetings.
If you are living with a partner or family, compare a studio with a one-bedroom apartment. Being able to separate calls and your work area from living space is essential. Check the desk dimensions, seating comfort, available power outlets, and natural lighting; do not count a small balcony table as a year-round workstation.
Check windows, corners, and walls for any signs of dampness or mold. Ask for a demonstration of the heating and ventilation systems, clarify how cooling is handled, and ask about average utility costs. These checks must be done for the specific unit: having the same neighborhood or complex name does not guarantee identical living conditions.
When renting, agree in advance on the lease duration, renewal options, early termination clauses, and any rent adjustment terms. Address the legal address registration and mail delivery in writing as a separate matter. If you are new to the city, start by testing your daily routine and working setup in temporary housing; base any decision to buy on your own actual needs rather than someone else’s outdated relocation story.
What to Do When Pausing or Closing Your Sole Proprietorship
Not having active clients does not mean your obligations have ended. The Revenue Service distinguishes between suspending business activity, canceling small business status, and deregistering an individual entrepreneur entirely. Clarify the proper procedure, file your final tax returns, and verify that your tax account has a zero balance.
Keep all contracts, bank statements, tax declarations, and closure confirmations on file. If you change your address or leave Georgia, update your registry records, ensure you retain online account access, and check how departing affects your immigration status. Do not rely solely on verbal assurances from an intermediary.
Where to Start Your Relocation Preparations
Start by defining your services, your clients and their locations, your expected income, and your basis for legal stay. Use these details to confirm whether you qualify for an immigration exemption or need specific permits, as well as whether your business qualifies for the preferential tax regime. Next, arrange your legal address, business registration, and accounting, and only commit to an apartment once you have verified the internet, workspace, and lease terms.
