Georgia has joined the Common Reporting Standard (CRS) system for the automatic exchange of financial information. This requires banks and financial institutions to report non-resident account data to their countries of residence. To avoid double taxation, it is necessary to obtain a Tax Residency Certificate in Georgia. This document officially confirms your residency and allows for effective tax management under international agreements.
Steps to Obtain the Certificate:
1. Preparation of Required Documents
- A completed application form (available on the official Revenue Service portal — rs.ge).
- A copy of your passport (for individuals) or company registration documents (for legal entities).
- Proof of residence (for individuals), such as a rental agreement, hotel confirmation, airline tickets, or entry/exit stamps.
- Income documentation — if the applicant works abroad, income statements and salary certificates may be needed.
- Evidence of economic or personal ties to Georgia (if applicable), such as property ownership or family connections.
In practice, usually only a passport copy is required to apply. The Revenue Service independently verifies border crossing information and, using your Tax Identification Number (TIN), checks for business activity. If there have been changes to your passport or personal information (e.g., name change), you may need to provide both old and new passports or request a detailed certificate.
2. Submitting the Application
You can apply to the Revenue Service of Georgia in one of the following ways:
- Online via [rs.ge] — the fastest and most convenient option.
- In person — by visiting the service center directly.
- Through a representative — with a power of attorney.
3. Application Review
The tax office will review the submitted information. This process usually takes 5 to 15 business days, depending on the complexity and workload.
You can request express issuance of the certificate for an additional fee — sometimes within a single day. To do so, you’ll need to specify the desired time frame and pay accordingly.
What is Checked?
- Number of days spent in Georgia (for individuals).
- Proof of economic activity (e.g., employment, real estate, bank accounts).
- Location of company management and control (for legal entities).
If the Revenue Service requires more details, they may request additional documents.
4. Receiving the Certificate
Once verified, the Tax Residency Certificate can be issued:
- Electronically — available as a PDF through your rs.ge account.
- In person — as a printed hard copy.
Validity: The certificate is typically issued for a specific tax year and is valid until the end of that year. If you apply mid-year, it may be valid for less than 12 months.
Tax Residency for Businesses in Georgia
Georgia offers excellent conditions for Russian citizens wishing to register as individual entrepreneurs (IEs) with “small business” status. Entrepreneurs benefit from a 1% tax rate on turnover, provided their activity code qualifies for the preferential regime.
Individual entrepreneurs and companies registered in Georgia automatically acquire tax residency status for the business itself. However, the founder of such a company — including sole entrepreneurs — does not automatically become a personal tax resident of Georgia. The founder may still be considered a tax resident of their country of residence or citizenship.
Key Differences:
- Business Tax Residency: The business is considered a tax resident based on its registration in Georgia. All taxes on its activity are paid in Georgia.
- Personal Tax Residency of the Founder: This depends on factors such as place of residence, ownership of assets, and other economic or personal ties.
Cost of Certificate Issuance
The certificate is free of charge (except for express issuance). If you require a notarized copy or a translation into a foreign language, those services are paid separately.
Frequently Asked Questions (FAQ)
1. How long does it take to get the certificate?
It usually takes 5 to 15 business days.
2. Can I apply online?
Yes, applications can be submitted via the rs.ge online portal. This is the most convenient and fastest way.
3. Can I get a certificate for a previous period?
Yes, you can request a certificate for past tax years, but you’ll need to provide documentation confirming your residence or economic activity during that period.
4. Can I obtain residency status without permanently living in Georgia?
Yes. Georgia has a program for High Net Worth Individuals (HNWI). You can qualify by having:
- Assets worth at least 3 million GEL, or
- Annual income of over 200,000 GEL for the last three years, or
- At least 25,000 GEL annual income from Georgian sources
You may then apply for tax residency.
5. Can I be denied a certificate even if I spent more than 183 days in Georgia?
Yes. Georgian law allows exceptions. For instance, if your stay was primarily for tourism or medical treatment, the tax office may consider this insufficient grounds for residency status and deny the certificate — which happens quite often. Every case is reviewed individually, and spending over 183 days in Georgia does not guarantee residency status automatically.
6. Is the TIN in Georgia a substitute for the certificate?
No. The TIN (Tax Identification Number) is simply used for all tax transactions — both for individuals and entrepreneurs. Obtaining tax residency status is not automatic, even if you live in Georgia. You must also work or conduct taxable activities in the country.
Conclusion
A Tax Residency Certificate helps avoid double taxation and allows the use of benefits under international tax treaties. It can also serve as proof of address or a relocation document.
The process is straightforward: prepare the necessary documents, submit an application via rs.ge or in person.
If you need help, it’s recommended to consult with legal professionals to avoid delays or mistakes.
