International business
Virtual Zone status in Georgia
Virtual Zone status exempts profit from IT exports from Georgian profit tax. It comes with clear conditions – not every IT company meets them.
What it is about
The basis is the Law on Information Technology Zones and Government Resolution No. 49 (amended up to 2025). It covers profit from IT that the company itself develops in Georgia and supplies to clients outside Georgia; no VAT applies to these supplies either.
The law sets no minimum number of employees – but without real development in Georgia there is no status. Reselling third-party software or developing abroad does not count; income from Georgia and non-IT income is taxed normally. The 5% withholding tax on dividends remains.
Requirements
- Georgian legal entity (e.g. LLC)
- IT development by the company in Georgia
- Supply to clients outside Georgia
- Application with details of IT projects
How it works
- Check the activity
- Form an LLC or use an existing one
- Apply to the Ministry of Finance
- Record qualifying income separately in the books
How StartKap helps
We check the requirements, file the application and set up bookkeeping so that qualifying and other income are kept separate.
Legal status checked on 9 Nov 2026. General information, not legal or tax advice for your individual case.
Questions about this service
How quickly is the status granted?
Under the rules within 10 working days of a complete application; the authority may request additional information.
Can the status be withdrawn?
Yes, for example if it is used to avoid tax or the conditions are no longer met.
Is the distribution tax-free as well?
No profit tax applies to qualifying profit even when distributed; the 5% withholding tax on dividends to individuals remains.