Updates & news
New rules for individual entrepreneurs in Georgia from March 2026
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 1% tax regime 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 — 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. However, the law does not provide a clear guarantee that fines cannot be imposed during this period — so we strongly recommend deciding well in advance, without waiting until the end of 2026.
Your options
What you can do during the transition period
Continue temporarily, but prepare
If you're not ready to decide, you can keep working as an IE — but use this time to study the implications, consult a lawyer or tax advisor, and evaluate whether adapting makes sense for you.
Close your IE by the end of 2026
If you don't live in Georgia and don't plan to relocate or obtain a work permit and residence permit, it's better to officially close your IE — avoiding fines, blocked bank accounts and tax consequences in 2027.
Go through legalization
Apply for a work permit, obtain a D1 work visa or work residence permit, and make sure you spend at least 183 days a year in Georgia. This lets you legally continue and keep the 1% regime where your activity qualifies.
Suspend IE activities
If you're unsure, you can temporarily suspend operations without closing the IE — but keep filing reports and watching account activity, so you don't accumulate 'default' violations.
Move to another jurisdiction
If your work isn't tied to Georgia and your clients are abroad, consider registering the business somewhere with a regime better suited to remote activity — both for tax and legal stability.
Frequently asked questions
Do I need to urgently close my IE?
No. But if you don't plan to obtain a permit and live in Georgia, it's better to do it before the end of 2026 rather than risk fines.
Can I continue to work remotely in 2026?
Formally yes — but after March 1 you must comply with the new requirements. The later you decide, the higher the risk of sanctions.
What if I'm not in Georgia for 183 days?
You will not be considered a resident, and continuing entrepreneurial activity becomes illegal even if you have obtained a permit.
📣 Conclusion
The 2026 changes are not a formality. They effectively close the possibility of running an IE from abroad in the previous format. To keep IE status in Georgia you need to make one of these decisions before the transition period ends: close your IE, relocate and legalize, or change the jurisdiction for your business.
Need help deciding?
We'll walk you through your options and handle whichever route you choose.