Georgia Investment Income Guide 2026

Overview — Investment Income Taxation

Georgia taxes investment income at favourable rates designed to encourage savings and investment. The tax treatment depends on the type of income, the recipient (individual or company), and the source (local or foreign). Resident individuals enjoy significant tax advantages on investment income, including a 0% rate on dividend income up to GEL 100,000 per year. The territorial system means foreign investment income (dividends, interest, capital gains from foreign sources) is generally exempt from Georgian tax. The Georgia Revenue Service administers all withholding taxes under the Tax Code of Georgia.

Dividends — 0% (Up to GEL 100K), Then 5%

Dividends paid by Georgian-resident companies to resident individuals are subject to the following rates:

• 0% — on the first GEL 100,000 of dividend income per calendar year
• 5% — on dividend income exceeding GEL 100,000 per calendar year

The 0% threshold applies per individual, not per company. The dividend tax is a final withholding tax, meaning no further tax reporting is required for individuals. For corporate shareholders, dividends received from Georgian companies are included in taxable income and taxed at 15% CIT (with a credit for any withholding tax). For non-residents, the dividend WHT rate is generally 5% (reduced to 0% under most DTTs). Foreign dividends received by Georgian residents are exempt under the territorial system.

Interest Income — 5% WHT

Interest income earned by Georgian tax residents from Georgian sources is subject to a 5% final withholding tax. This applies to:

• Bank deposits — 5% WHT on interest earned on GEL and foreign currency deposits
• Corporate bonds — 5% WHT on interest payments
• Government securities — 5% WHT on interest
• Loans to related parties — 5% WHT on interest (if arm's length)

The 5% WHT is a final tax for resident individuals. For companies, interest income is included in taxable income and taxed at 15% CIT, with credit for the 5% WHT. Interest paid to non-residents is generally subject to 5% WHT (reduced under DTTs in some cases). Foreign-source interest received by Georgian residents is exempt under the territorial system.

Foreign Investment Income — Territorial Exemption

Under Georgia's territorial tax system, foreign-source investment income is entirely exempt from Georgian tax. This includes:

• Dividends from foreign companies
• Interest from foreign banks and bonds
• Capital gains from disposal of foreign assets
• Rental income from foreign properties
• Royalties from foreign sources

This exemption makes Georgia a highly attractive jurisdiction for international investors and expatriates with global investment portfolios. There are no reporting requirements for foreign investment income. However, taxpayers should maintain records to demonstrate the foreign source of the income in case of GRS inquiry.

FAQs

Do I need to report foreign dividends in Georgia?

No, foreign-source investment income is exempt from Georgian tax under the territorial system and does not need to be reported on your Georgian tax return.

Is the GEL 100,000 dividend threshold per company or per individual?

Per individual. An individual can receive up to GEL 100,000 in total dividends from all Georgian companies at 0% tax. The 5% rate applies to dividends exceeding this aggregate threshold.

Are mutual fund distributions taxable?

Distributions from Georgian mutual funds are generally treated as dividend income and subject to the same 0%/5% rates. Foreign mutual fund distributions are exempt under the territorial system.

Disclaimer

This guide provides general information about Georgian investment income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Georgian tax advisor or the Georgia Revenue Service for advice specific to your situation. InvestmentKit does not provide tax advice.