Residency & Citizenship by Investment

 

Gaining Residency in Georgia: A Unique Path

Perhaps the Republic of Georgia in the South Caucasus hasn’t yet crossed your radar, but there exist numerous compelling incentives for pursuing residency within its borders. From a personal perspective, this nation holds a special place in my heart, and I find myself making frequent visits.

A Distinctive Tax Framework on the European Landscape

Operating under a distinctive tax framework, Georgia employs a system that solely taxes its residents based on income originating within its own borders. Consequently, if you establish tax residency in Georgia, the local tax authorities won’t endeavor to levy taxes on earnings you derive from renting property overseas, receiving dividends internationally, realizing gains on foreign investments, or conducting business ventures beyond Georgian boundaries. Your tax obligations are confined to the jurisdictions where your assets are situated – no additional dues to be settled in Georgia.

Embracing this territorial tax model can offer remarkable advantages that significantly enhance your quality of life. Picture the substantial savings in terms of both finances and time, all stemming from a reduced involvement in tax-related affairs. With greater financial resources at your disposal, you’re free to direct your assets towards business expansion, venturing into new enterprises, making meaningful contributions to charitable initiatives, or fortifying your savings for the future.

In the European landscape, Georgia stands out as the lone proponent of the territorial tax system. Similar frameworks have found implementation in other regions, including Latin American nations like Panama and Nicaragua, as well as Asian counterparts such as Malaysia and Hong Kong.

While the personal income tax rate on income sourced within Georgia rests at 20%, this nation refrains from imposing inheritance taxes, capital gains levies, wealth-based impositions, or stamp duties.

A Highly Affordable Lifestyle

Georgia secures its place among nations characterized by an economical cost of living, as attested by the Numbeo Cost of Living Index. Within the bounds of Georgia, relishing a draft beer comes at a mere $1, while a satisfying restaurant feast demands only around $4 from your wallet. Should you require a taxi voyage across town, a mere $2 will cover the fare.

Achieving a contented life in Georgia does not necessitate a substantial financial outlay. For example, you can bask in weekends along the shoreline or amidst mountainous landscapes, steering clear of Tbilisi, the bustling capital, with accommodations in fine hotels available for as little as $60 per night.

This translates into the possibility of accumulating more substantial savings and directing your fiscal reservoir towards amplifying your commercial undertakings, exploring fresh investment prospects, contributing to philanthropic endeavors, or establishing a financial cushion for your forthcoming endeavors.

A Truly Exquisite Nation

Georgia stands as an enchanting realm, brimming with mesmerizing vistas and captivating encounters. The capital city, Tbilisi, unfolds a tapestry of history reaching back to the 5th century AD, a testament to its diverse cultural and artistic offerings. It proudly hosts an array of attractions, from museums, historical residences, and art enclaves, to places of worship encompassing churches, mosques, and synagogues. Moreover, a burgeoning alternative art scene adds a touch of avant-garde intrigue, promising a ceaseless array of captivating avenues to delve into.

For those with a penchant for the great outdoors, a brief journey by car will lead you to the resplendent Caucasus mountains, nestled close to the Russian border. These peaks form an idyllic backdrop for leisurely hikes and immersive exploration during the warmer months, and the winter season transforms them into a playground for thrilling skiing escapades, all at commendable rates.

Should a weekend escapade beckon, contemplate an expedition to Kakheti, a haven renowned for its wine country, or set your sights on the petite “mini-Dubai” enclave of Batumi, perched along the Black Sea. Batumi beckons with its vivacious nocturnal realm, replete with casinos, nightclubs, and delectable culinary experiences. And, of course, the charm extends to languid summer weekends graced by the soothing lull of the nearby beaches.

A great geographic location

Georgia’s geographic location makes it an ideal destination for those who believe that the world’s center is gradually shifting away from the North Atlantic to Asia. Situated between Turkey and Russia and with Iran within relatively close proximity, Georgia is situated in a prime location.

In addition to being a great destination for road-trips, Georgia also has excellent air connectivity to various parts of the world. For instance, Tbilisi, the capital city, has direct flights to destinations across Europe, the Middle East, Central Asia, and even China. This makes it a well-connected destination for travelers. Kutaisi, another major city in Georgia, is also a popular destination with many low-cost flights to Europe available. For example, earlier this year, I was able to fly to Kutaisi from Paris and back for only 40 euros.

Great value real estate that enables you to get residency in Georgia

I have previously shared my insights on the real estate market in Tbilisi, Georgia. Although the returns on investment may not be astronomical, the value for money that you get is outstanding. If you are considering living in Tbilisi and wish to purchase a property for personal use, you will be astounded by the amazing deals available. Not only that, but real estate can also serve as a good investment vehicle for storing your wealth.

Furthermore, purchasing real estate in Georgia can also be a means of obtaining residency.

An Excellent Hub for Business Ventures

Georgia has achieved the impressive 7th position on the Ease of Doing Business index, an accolade that prompts the question: what attributes contribute to this achievement?

To begin with, the process of establishing a local enterprise in Georgia is a swift 24-hour affair. The corporate tax stands at a modest 15%, while dividends attract a mere 5% tax when they are distributed. Importantly, this signifies that all profits reinvested remain exempt from taxation.

Moreover, a firm commitment on both political and cultural fronts underscores Georgia’s dedication to facilitating business endeavors. Customs and tax procedures have been streamlined to eliminate superfluous bureaucracy, ensuring that businesses operate without wasteful delays.

The Transparency International index further underscores Georgia’s favorable standing, indicating a low perceived incidence of corruption. Remarkably, Georgia matches the Czech Republic in this particular ranking.

Adding to its allure, Georgia boasts a stellar banking framework, solidifying its reputation as a highly appealing global banking destination offering exceptional value.

Rooted in conservative Christian Orthodox principles, Georgia’s family-oriented ethos places a strong emphasis on familial bonds. Consequently, foreign nationals, particularly those with families, are embraced with open arms, often forging numerous local friendships.

Several prestigious international schools provide diverse curricula, ranging from British, American, German, Russian, to even French. Those who opt for full immersion into Georgian society can avail themselves of exceptional local private schools.

Enhancing its appeal, Georgia maintains a commendable level of safety, characterized by low crime rates. Strolling through the streets at night is generally considered secure, positioning Georgia as a safer haven compared to numerous Western European counterparts.

 

Many options to get residency in the Republic of Georgia

Georgia offers various pathways for foreign nationals to obtain residency. One option is a temporary visa through a $100,000 investment in real estate. Alternatively, a permanent residency visa can be obtained through a $300,000 investment in real estate. Tourists from many countries can also stay visa-free in Georgia for up to a year. Additionally, the country has a special tax residency regime designed for High Net Worth Individuals (HNWI) seeking to obtain tax residency without spending 183 days in Georgia. This immigration-friendly policy makes Georgia an attractive destination for those looking to relocate or establish a second home.

What are the Residency by Investment options in Georgia, the country?
• Temporary Residency through a real estate investment
• Permanent Residency by Investment
• Special Tax Residency Scheme for High Net Worth Individual

1. Acquiring Temporary Residency in Georgia Made Easy

If you’re considering obtaining temporary residency in Georgia, purchasing real estate valued at $100,000 or more can grant you and your immediate family a residency permit. You can refer to my article on real estate in Tbilisi for more information on this matter. Essentially, by buying a nice house or apartment at that price point, you can legally reside in Georgia and enjoy the benefit of not being taxed on your worldwide income.

To help you with the process, a certified agent whom I’ve worked with before can provide the following services:

• Temporary residency services
• Document preparation
• Application screening by an immigration lawyer
• Assistance at the immigration department to navigate the process
• Aid in obtaining the actual residency card

The residency card is usually valid for a year, and it must be renewed after its expiration. While you can potentially do the renewal yourself, the process is conducted in Georgian and can be quite complex. By using such services, you can ensure that you obtain your residency without stress or complications.

2. Acquiring Permanent Residency in Georgia through Investment

If you’re interested in obtaining permanent residency in Georgia through investment, purchasing real estate worth $300,000 or more can grant you a 5-year investor visa. During the visa’s validity period, you must maintain the real estate, or if you sell some of it, purchase other real estate of equal or greater value. After 5 years, you will be eligible for permanent residency. However, applying for citizenship after 10 years and learning Georgian can be quite complicated, so it may not be a feasible option.

It’s essential to note that the process can be complex and overwhelming, but a certified agent can assist you in making the process smoother. We can provide a range of services, such as document preparation, application screening by an immigration lawyer, and support at the immigration department to navigate the process. By utilizing these services, you can ensure a stress-free and straightforward process to obtain permanent residency in Georgia through investment.

3. Acquiring the Special Tax Residency Regime for High Net Worth Individuals in Georgia 

If you want to qualify for the Special Tax Residency Regime for HNWI in Georgia, you must possess a temporary residence permit, an investor visa, permanent residency, or provide evidence of GEL25,000 of annual Georgia-sourced income. Additionally, you must meet one of the following criteria:

• Provide proof of at least GEL3,000,000 in assets worldwide.
• Provide proof of earning at least GEL200,000 in the fiscal year.

Assets include real estate, brokerage accounts, precious metals, private funds, cash in bank accounts, and so on.

Once you meet the criteria, you only need to spend approximately three weeks per year in Georgia. Once your special application is approved, you will receive a tax certificate valid for one year. You must renew it every year, except when you spend 183 days or more in Georgia during that year.

The process can be quite complex as it involves various certifications and audit reports. However, a service agent can guide you through the entire process. By taking advantage of this special tax residency regime, you can save a significant amount of money in taxes.

There is a way for many individuals to obtain tax residency in Georgia without making any investments in the country. How? It’s quite simple. If you spend 183 days or more in Georgia, even as a tourist, you can apply for a tax certificate after filing your taxes. Citizens from 95 countries can enter Georgia without a visa, and you can check the current list on the website of Georgian migration services.

However, obtaining a residency permit can be beneficial in demonstrating to other countries that might want to claim your income that you truly reside in Georgia, strengthening your case.

Also, when you see what happened with the coronavirus, residents received special treatment. If you were hoping to get back “home” to Georgia without any residency you would not have been let in, as you were merely a long term tourist.

 

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If you’re thinking about leaving the country but don’t know where to start, our GCI UNT Worldwide team is here to help.

We’ve helped hundreds of people move their businesses overseas, legally reduce their taxes, and become dual citizens. We are focused on high-net-worth individuals and their families as well as corporations wishing to invest their offshore companies or even secure their wealth in offshore financial centers around the world. We will help you to find the best solution for setting up an offshore or onshore company. Another special area of our full-service consulting is the investment opportunity and solution in Europe, especially in the Balkans, Africa, Asia, UAE, the Caribbean and the Pacific.

If you are looking for it, please feel free to contact us. We create a holistic plan that serves your purpose.
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