Legislative Updates in Georgia: April – June 2025

08.09.2025

• Amendments to the Law on Grants (Effective April 16, 2025)
• New Statuses and Tax Incentives for Startups (Effective September 24, 2025)
• Introduction of “Nomad” Residence Permit for IT Specialists (Effective September 1, 2025)
• Stricter Migration Penalties (Effective September 1, 2025)
• Amendments to the Law on Labor Migration
• Contact our lawyer for more details

Amendments to the Law on Grants (Effective April 16, 2025)

1. Foreign grants may now be received only with approval from the government or an authorized official.
2. Oversight: Anti-Corruption Bureau.
3. Penalty: Receiving a grant without approval results in a fine twice the amount of the grant.
4. Exceptions:
   • Sports grants,
   • Individual scholarships for study/research abroad,
   • Grants for international organizations operating in Georgia.
5. Approval timeline: 10 calendar days.
6. Appeals do not suspend the decision.
7. The requirement does not apply to grant agreements signed before April 16, 2025, unless amended after that date.

New Statuses and Tax Incentives for Startups (Effective September 24, 2025)

Amendments to the Law on Innovation and the Tax Code introduce:

• Innovative Startup Status
• Innovative SME Status
• R&D Service Provider Status

Tax Benefits for Startups:

• Years 1–3: 0% income tax on salaries.
• Years 4–6: 5% income tax and 5% corporate tax.
• Years 7–10: 10% income tax and 10% corporate tax.

Eligibility for Startup Status:

1. Must develop an innovative product, process, or service.
2. Must have received:
   1. ≥100,000 GEL in investment from an accredited fund, or
   2. ≥150,000 GEL in grants over the past 2 years.
3. No debts, bankruptcy, or liquidation procedures.
4. Investment milestones:
   • By year 4: ≥5 million GEL (≥30% from institutional investors).
   • By year 7: ≥15 million GEL (≥30% from institutional investors).
5. Status is valid for 1 year and renewable annually for up to 10 years.
    

Introduction of “Nomad” Residence Permit for IT Specialists (Effective September 1, 2025)

Eligible applicants:

• Employed IT professionals (registered with the Ministry of Health),
• Individual entrepreneurs with small business status in IT,
• Employees of international IT companies.

Requirements:

• Minimum 2 years of IT experience,
• Annual income ≥$25,000,
• Must reside in Georgia ≥183 days per year.

Permit Duration:

• Issued for 3 years,
• Renewable up to 12 years.

Note: Procedures and document lists will be defined by the government

Stricter Migration Penalties (Effective September 1, 2025)

Overstay Penalties:

• Up to 6 months: 1,000 GEL + possible 1-year entry ban,
• 6–12 months: 2,000 GEL + possible 2-year entry ban,
• Over 1 year: 3,000 GEL + possible 3-year entry ban.

Repeat violations: Entry ban up to 3 years

Amendments to the Law on Labor Migration

More details available at REVERA Georgia

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