Virtual Zone Status in Georgia for IT Companies
Last updated: October 2026
Virtual Zone is a Georgian tax status for IT companies. Profit from IT services and software supplied to clients outside Georgia is exempt from profit tax; when you pay profit out to yourself, dividends are taxed at 5%. We register your LLC, prepare the application and keep the company compliant.
What Virtual Zone gives you
| Standard Georgian LLC | Virtual Zone LLC | |
|---|---|---|
| Profit tax on IT services supplied abroad | 15% when distributed | 0% |
| Dividend tax to individuals | 5% | 5% |
| VAT on services to foreign clients | generally outside Georgian VAT | generally outside Georgian VAT |
| Salaries | 20% income tax + pension | 20% income tax + pension |
Virtual Zone does not lower tax on salaries, and income from Georgian clients is taxed normally.
Who qualifies
- A Georgian legal entity, usually an LLC. Individual Entrepreneurs cannot apply.
- Its business is IT: software development, IT systems, support and implementation.
- It supplies those services or products from Georgia to clients outside Georgia.
- It has a real presence in Georgia, typically people who do the IT work here. A one-person company can qualify if the founder builds the product in Georgia.
How we get you the status
- Call. We check that your activity and clients fit.
- LLC registration if you don’t have one yet. LLC registration →
- Application to the Financial-Analytical Service of the Ministry of Finance of Georgia, describing your projects, team and clients, with supporting documents.
- Decision. Review takes about 10 working days; the certificate follows shortly after approval.
- Compliance. Separate accounting for qualifying income, monthly declarations and proof of foreign clients. Accounting →
Price
Price on request; it depends on whether we also register the LLC and run the accounting.
Frequently asked questions
Can a freelancer get Virtual Zone status?
Not as an Individual Entrepreneur. A solo developer needs an LLC. For most freelancers, 1% Small Business Status → is simpler.
Is it really 0% tax?
0% profit tax on qualifying IT income from abroad. Dividends to individuals are still taxed at 5%, and salaries are taxed normally.
Do I need employees in Georgia?
You need a real presence here. For a one-person company, the founder doing the work in Georgia can be enough.
Can the status be lost?
Yes, for example if the company stops meeting the conditions or uses it to avoid tax.
Related: Unlocking growth in Georgia’s Virtual Zone (guide) →
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