New Rules for Individual Entrepreneurs in Georgia from March'26
What those living outside the country need to know
In 2025, the Georgian Parliament adopted amendments that significantly change the rules for conducting business activities for foreign citizens registered as individual entrepreneurs (IE) in the country.
According to these changes, starting from March 1, 2026, it will be impossible to conduct business activities as an IE without a work permit and without physical presence in Georgia. This directly affects everyone who previously used the preferential tax regime (1%) remotely — living in another country and working with international clients.
According to these changes, starting from March 1, 2026, it will be impossible to conduct business activities as an IE without a work permit and without physical presence in Georgia. This directly affects everyone who previously used the preferential tax regime (1%) remotely — living in another country and working with international clients.
⚠️ Important to note:
The amendments have already been adopted by the Georgian Parliament, but the changes have not yet come into force.
They are scheduled to take effect from March 1, 2026, but at this stage, it remains uncertain whether they will be implemented in full, partially, or with further adjustments.
They are scheduled to take effect from March 1, 2026, but at this stage, it remains uncertain whether they will be implemented in full, partially, or with further adjustments.
📌 Key changes:
- From March 1, 2026, foreigners will not be able to conduct business activities in Georgia without a work permit.
- Continuing IE activities without meeting the new conditions will be considered a violation.
- Violation is punishable by a fine of 2,000 to 4,000 GEL.
- To maintain IE status, you must:
- obtain a work permit;
- get a D1 work visa or a residence permit for employment;
- stay in Georgia for at least 183 days per year.
🕓 Transition period until January 1, 2027
- The government has provided a transition period from March 1, 2026, to January 1, 2027, to give current entrepreneurs time to adapt to the new requirements. However:
- The law does not provide a clear guarantee that fines cannot be imposed during this transition period.
- Therefore, we strongly recommend making a decision well in advance, without waiting until the end of 2026.
✅ What actions are available to IEs during the transition period
1. Continue activities temporarily, but prepare for transition.
If you're not ready to make an immediate decision, you can continue working as an IE, but it's important to use this time for preparation:
2. Close your IE by the end of 2026. If you:
3. Go through legalization: permit, visa, and residence. If you want to maintain your IE status and continue business in Georgia:
4. Suspend IE activities
5. Transfer activities to another jurisdiction
If you're not ready to make an immediate decision, you can continue working as an IE, but it's important to use this time for preparation:
- study the implications of the new requirements;
- consult with a lawyer or tax consultant;
- evaluate whether it makes sense to adapt to the new conditions.
2. Close your IE by the end of 2026. If you:
- don't live in Georgia;
- don't plan to relocate or obtain a work permit and residence permit;
3. Go through legalization: permit, visa, and residence. If you want to maintain your IE status and continue business in Georgia:
- apply for a work permit;
- obtain a D1 work visa or work residence permit;
- ensure you stay in Georgia for at least 183 days per year to maintain tax and migration residency.
4. Suspend IE activities
- If you're unsure or not ready to make a final decision:
- you can temporarily suspend operations without closing your IE;
- it's important to monitor tax reporting and account activity to avoid "default" violations.
5. Transfer activities to another jurisdiction
- If your work is not tied to Georgia, and you serve foreign clients:
- consider registering your business in another country with a more suitable regime for remote activities;
- this may be beneficial both in terms of taxation and legal stability.
Frequently Asked Questions (FAQ)
No. But if you don't plan to obtain a permit and live in Georgia — it's better to do this before the end of 2026 to avoid risking fines.
Formally — yes. But after March 1, you must comply with the new requirements. The later you make a decision, the higher the risk of sanctions.
In this case, you will not be considered a resident, and continuing entrepreneurial activities will become illegal, even if you have obtained a permit.
📣 Conclusion
The changes in 2026 are not just a formality. They effectively close the possibility of conducting IE activities from abroad in the previous format. And if you want to maintain IE status in Georgia, you need to make one of the decisions before the end of the transition period:
- Close your IE,
- Relocate and legalize,
- Or change the jurisdiction for your business.
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