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Tax Residency vs. Legal Residency in Georgia

Georgia, a beautiful country nestled in the Caucasus region, has become an attractive destination for expatriates and investors due to its favorable business environment and stunning landscapes. However, when considering a move to Georgia, it's crucial to understand the difference between tax residency and legal residency, as they carry distinct implications for your financial obligations and legal status. In this blog post, we'll delve into the disparities between tax residency and legal residency in Georgia.

Legal Residency in Georgia:

Legal residency refers to your legal status in a country. In Georgia, legal residency signifies your permission to reside within the country and enjoy various rights and privileges. Legal residency can be acquired through different means, including:

  1. Visa Types: Georgia offers various visa types for foreigners, such as tourist visas, work visas, and long-term residence permits. These visas grant you the legal right to stay in the country for specific purposes and durations.

  2. Investment-Based Residency: Georgia's Investor Residence Program allows individuals to gain legal residency by investing in the country. By investing a certain amount in Georgian businesses or real estate, you can qualify for residency.

  3. Family Reunification: If you have close family members who are Georgian citizens or legal residents, you may be eligible for family reunification, granting you legal residency.

Tax Residency in Georgia:

Tax residency, on the other hand, is related to your obligations regarding taxation within a country. Being a tax resident means you are liable for paying taxes on your worldwide income in that particular country. In Georgia, tax residency is determined by the following factors:

  1. Physical Presence: If you spend 183 or more days in Georgia during a calendar year, you are considered a tax resident. These days do not need to be consecutive, and they can accumulate throughout the year.

  2. Center of Vital Interests: You are also considered a tax resident if Georgia is the center of your vital interests, which may include family, financial, or social ties.

  3. Permanent Residence: If you have a permanent residence in Georgia, you will be regarded as a tax resident.

Key Differences:

  1. Legal residency provides the right to reside in Georgia, while tax residency involves tax obligations.

  2. Legal residency can be obtained through various means, including visas, investments, and family reunification, whereas tax residency depends on the number of days spent in the country and your vital interests.

  3. Legal residents may or may not be tax residents. Legal residents who spend less than 183 days in Georgia may not be considered tax residents.

  4. Tax residents are liable to pay taxes on their worldwide income, while non-residents are taxed only on income earned within Georgia.

In Georgia, the distinction between legal residency and tax residency is significant, as it affects your rights and responsibilities as an expatriate or investor. Understanding these differences is essential when planning your move to this picturesque country. Whether you're interested in residing in Georgia for personal reasons or looking to invest in its thriving economy, knowing the nuances of legal and tax residency will help you make informed decisions and navigate the legal and financial landscape with confidence.


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