Economic Overview, Digital Nomad Magnet & IT Virtual Zones
Georgia offers an ultra-competitive business environment with 1% small business tax regimes and 5% international IT company incentives.
Key Economic Sectors
- IT Outsourcing & FinTech: Fast-growing custom software, mobile app, and blockchain development in Tbilisi.
- Transit & Middle Corridor Logistics: Strategic Black Sea ports (Poti, Batumi) linking Europe and Central Asia.
- Tourism & Wine Agro-Industry: World's oldest continuous winemaking tradition and mountain/coastal tourism.
Employment Contracts, Labour Code & Probation
Governed by the Labour Code of Georgia.
- Written Contracts: Mandatory in Georgian (or bilingual) for contracts exceeding 1 month.
- Probation Period: Maximum statutory probation is 6 months.
Working Hours, Overtime & Rest Periods
- Standard Hours: 40 hours per week (48 hours for non-standard enterprises).
- Overtime: Must be compensated with a statutory hourly premium agreed in contract.
Annual Leave, Public Holidays & Maternity Protections
- Annual Paid Vacation: Minimum 24 working days per year.
- Public Holidays: 17 official public holidays.
- Maternity Leave: Up to 730 calendar days of pregnancy, childbirth, and childcare leave (with 183 days paid through state social assistance and employer top-ups).
Pension Agency (2% + 2%), Flat 20% Tax & IT Incentives
| Statutory Scheme | Employer Share | Employee Share | Description |
|---|---|---|---|
| Accumulative Pension Scheme | 2.0% | 2.0% | Pension Agency funded individual account (+ 2% State match) |
Personal Income Tax: Flat 20.0%, withheld monthly and remitted to Revenue Service (RS.ge).
Termination, Notice & Severance Indemnity
- Notice Periods: 30 days written notice (or 3 days notice with 1 month severance pay).
- Severance Pay: Minimum 1 month's salary for termination initiated by employer.
Why Use an Employer of Record (EOR) in Georgia
- Rapid Talent Deployment: Onboard software engineers in Tbilisi in days.
- Pension & Tax Compliance: Seamless management of Pension Agency contributions and Revenue Service filings.
- Work Permit & Residence Support: EOR facilitates residence permit documentation for foreign specialists.