How much would you actually save with Small Business Status in Georgia? This tax calculator puts your estimated home-country burden next to the Georgian 1% regime — as a deliberately simple model with disclosed assumptions, not a substitute for advice. As of July 2026, the rule is 1% on turnover up to 500,000 GEL per year.
The assumptions — fully disclosed
The calculator uses three inputs and a deliberately plain formula:
- Home country: annual revenue × profit margin × marginal tax rate. The marginal rate is meant to roughly bundle income tax plus levies — depending on country and situation it typically sits between 20% and 60%.
- Georgia: 1% on turnover (not profit) up to the equivalent of 500,000 GEL — the model uses roughly EUR 165,000. Above that threshold the 3% tier applies to the excess; the calculator shows this as a note instead of faking precision with an exchange rate.
- Savings: the difference between the two figures, each with its effective rate.
Social security, church tax, and progression effects are not modeled — more on that below the calculator.
Tax comparison calculator
Home country vs. Small Business Status in Georgia — a simplified model calculation.
Your model calculation
What the calculator does not capture
The model shows an order of magnitude — the real effect depends on factors no slider can capture:
- Exit taxation: if you hold 1% or more in a corporation, leaving Germany can trigger exit tax under § 6 AStG, plus possible extended limited tax liability under § 2 AStG.
- Double taxation treaties: without a genuine change of residency, the treaty tie-breaker decides where your center of vital interests lies — and who gets to tax you. Details: Georgia tax residency.
- Social security: home-country contributions do not automatically end when you deregister a business; the calculator leaves them out on both sides.
- Substance requirements: the 1% rate only applies to activities permitted under Decree #415 (consulting is excluded) and only to genuine self-employment — all conditions in detail: Georgia 1% tax with Small Business Status.
FAQ
FAQ
How realistic is the calculated saving?
Realistic as an order of magnitude, not as a precise figure. The calculator simplifies deliberately: no social security, no church tax, no progression. Your actual saving depends on your structure and a clean change of tax residency.
Why does the calculator use revenue instead of profit?
Because that is how Small Business Status works: 1% on turnover up to 500,000 GEL per year, regardless of costs. With very high cost ratios, the standard regime can occasionally be cheaper.
What happens above the 500,000 GEL threshold?
From the month the threshold is crossed, 3% applies to the excess. The status is only lost if the threshold is exceeded in two consecutive years. Above roughly EUR 165,000 the calculator displays a corresponding note.
Does the 1% rate apply to every activity?
No. Decree #415 excludes consulting/advisory services, among others. Permitted activities include IT/software development, design, copywriting, marketing execution, and e-commerce services — and employment income never falls under the 1% regime.
This article and the calculator are for general information only and do not constitute legal or tax advice. If you remain taxable in your home country, you must declare foreign income and accounts there — always involve a tax advisor in your home jurisdiction, especially before relocating. Last updated July 2026; rules may change.