Whether I have become a Georgian tax resident: what to do under Georgian law

What to do

1. Day-count test: a tax resident for the whole tax year is a person who has been in Georgia for 183+ days in any continuous 12-month period ending in that year (Tax Code Art. 34); the individual’s tax (reporting) period is the calendar year (Tax Code Art. 135). The window may start in the previous year.
2. How to count: any day in Georgia, even a partial one, counts as a full day of presence (Tax Code Art. 34); time spent abroad specifically for medical treatment, rest, a business trip or study counts as presence in Georgia (Tax Code Art. 34); days of transit through Georgia and days in Georgia for medical treatment or rest are not counted (Tax Code Art. 34). Trips abroad for other purposes (living, working) do not count.
3. Every year anew: resident or non-resident status is determined separately for each tax period (Tax Code Art. 34); days that gave residency for a previous period are not counted again (Tax Code Art. 34).
4. Other routes: residency may also be granted to a person with significant property under the procedure set by the Minister of Finance (Tax Code Art. 34); to a foreigner — also in cases established by the Minister of Finance (Tax Code Art. 34); a citizen of Georgia who is not a resident of any country is a resident upon application (Tax Code Art. 34).
5. What it changes: a resident individual’s income not from a Georgian source is exempt from tax (territorial principle) (Tax Code Art. 82); a non-resident pays tax only on income from a Georgian source (Tax Code Art. 79). The country of citizenship applies its own criteria; in case of dual residence, a ratified treaty that has entered into force takes precedence over the Tax Code (Tax Code Art. 2) (the treaty’s conflict rules apply).
6. Where to apply: Revenue Service (rs.ge); Ministry of Internal Affairs — border-crossing statement.
7. Evidence: Ministry of Internal Affairs border-crossing statement, tickets, certificates for treatment, study or business trips, housing rental agreement.
8. Pitfalls: counting the 183 days only within a calendar year — the window is any 12 consecutive months ending in that year; not counting vacations or treatment abroad — those days do count; counting rest or treatment in Georgia, or transit, as days of presence — those days do not count; confusing tax residency with a residence permit — a residence permit is neither required nor sufficient; assuming a Georgian tax resident pays tax on worldwide income.

Be sure to check

• 183 days in any continuous 12-month period ending in the tax year — a resident for the whole year
• which days count: a partial day counts as a full day; trips for treatment, rest, business or study count; transit and rest or treatment in Georgia do not
• status is determined separately for each calendar year; days are not carried over
• consequences: a resident’s foreign-source income is exempt; a non-resident pays tax only on Georgian-source income
• the country of citizenship applies its own rules; dual residence is resolved under the double taxation avoidance treaty