How to register as an Individual Entrepreneur in Georgia and pay taxes

Why register as an Individual Entrepreneur in Georgia? 🏡

Georgia is often chosen for its relatively simple business setup, flexible tax options and ease of managing affairs from abroad. For buyers who plan to rent out properties or run small services, registering as an Individual Entrepreneur (IE) is a straightforward way to legalize income.

1. Choose the right legal form: IE or LLC? ⚖️

• IE suits freelancers, small-scale landlords and sole service providers — fewer formalities.
• An LLC offers better personal asset protection and may be preferable for larger investments or multiple partners.
  Decide based on your goals: short-term rentals and low overhead — IE; larger projects and shared ownership — consider an LLC.

2. Registration steps in brief 📝

• Prepare identification (passport) and contact address.
• Register via Public Service Halls or online portals if you have access.
• Declare your business activity (e.g., long-term rental, property management).
• Receive your registration certificate and taxpayer identification.
  You can complete registration remotely using a local representative or consultant.

3. Picking a tax regime 💡

Georgia offers simplified regimes aimed at small businesses. When choosing, consider:

• expected annual income from rentals or services;
• whether you need VAT registration for higher turnover;
• planned range of deductible expenses.
  Low-turnover activities often fit simplified options; for larger operations, standard tax accounting may be better. Short-term (day-to-day) rentals can require a distinct approach — consult an accountant.

4. Accounting and record-keeping tips 📂

• Keep a separate business bank account for clean accounting.
• Keep contracts, repair invoices and utility bills as proof of expenses.
• Hire a local accountant or tax advisor; they know the latest rules and language nuances.
• Clarify reporting deadlines with your advisor to avoid fines.

5. For foreigners: residency, banks and KYC 🌍

• Foreigners typically need a passport and local contact details; in some situations a local agent helps with registration.
• Open a Georgian bank account — banks will request documents to verify sources of funds and business activity.
• Decide whether rental income is taken personally or through your IE/LLC.

6. Real estate and taxation — practical scenarios 🏢

• Long-term rental: generally simpler reporting and stable cash flow.
• Short-term rental: may require more frequent reporting and different tax handling; sometimes separate activity registration helps.
  Example: buying an apartment to rent out — registering as an IE allows you to receive payments officially and account for upkeep costs.

7. Reduce risks and avoid common mistakes ❗

• Don’t mix personal and business accounts.
• Consult local professionals — tax rules change and have local specifics.
• Assess legal risks when using short-term rental platforms.

Conclusion and how BuyHome can help 🤝

If you’re buying property in Batumi or elsewhere in Georgia, BuyHome can assist with property selection, income estimates and recommendations for accountants and lawyers. Start your search: https://buyhome.ge/en/search

If you'd like help choosing a property or organising your business setup in Georgia, contact us — we provide practical, no-pressure support.