The 1% regime runs to GEL 500,000 — and the list of what it will not cover is the part to read

An individual entrepreneur with small business status pays 1% of turnover, up to annual turnover of GEL 500,000, with a higher GEL 700,000 ceiling for agritourism activity. Cross the ceiling during a year and the excess is taxed at 3% while the status itself survives to year end; exceed it in two consecutive years and the status falls away from 1 January of the third. Registration runs through the Revenue Service portal and is usually a same-day matter, and monthly declarations are due even for months with no income at all.

The 1% applies to business turnover, not to everything that reaches your account. Rental income, gains from selling assets, interest, dividends, royalties, gifts and winnings fall outside it and are taxed under their own rules. Several occupations are excluded from the regime altogether, among them legal and notarial work, tax advice, audit, medical and architectural practice, financial intermediation and currency exchange, gambling, and excisable activity. Licensed activities are generally out too, with narrow exceptions.

The first is VAT: turnover above GEL 100,000 in any rolling twelve months triggers registration at 18%, and that threshold is far below the 1% ceiling, so a growing tour or guiding business can owe VAT while still comfortably inside small business status. The second is where the work is performed. A non-resident can hold the status on Georgian-source income, but services delivered from or in another country may be taxable there as well, which is a question about that country's rules and any double-tax treaty, not about Georgian ones.

Treat the ceiling, the exclusion list and the VAT threshold as three separate tests and check your own year against all three, because passing one says nothing about the others. The figures above reflect guidance published in late September 2026; rates and thresholds in Georgia are set by law and have moved before, so confirm them with the Revenue Service or a local adviser before restructuring anything.