This guide explains who in Georgia actually pays 0% tax on selling crypto, the difference between individuals, sole traders, and companies, and when the 1% and 15% rates kick in. It’s useful both if you already live in Georgia and if you’re considering moving here to cut your tax bill.
Since January 1, 2026, the EU’s DAC8 directive has required crypto exchanges to report data on digital asset holders to tax authorities, and the US is rolling out Form 1099-DA for reporting crypto income. Against this backdrop, Georgia remains a rare exception: the zero rate for individuals is set out in an official clarification from the Georgian Ministry of Finance.
Key Takeaways
- Individuals pay 0% on selling and exchanging crypto. The exemption rests on Public Decision No. 201 of the Ministry of Finance of Georgia dated June 28, 2019.
- The 1% turnover rate for sole traders with Small Business Status doesn’t automatically cover crypto trading: Small Business Status already excludes “currency exchange operations” as an activity type (Government Decree No. 415), and tax advisors note that the Revenue Service and the National Bank of Georgia have yet to clarify whether active crypto trading falls under that definition (GTC Article 90(3)). Until that’s settled, treating crypto trading as ordinary SBS turnover carries a real risk of losing the status. Companies that run crypto as a systematic business pay 15% tax under Georgia’s standard corporate regime — the Estonian model — charged only on distributed profit.
- For transactions from ₾30,000 (≈$11,000), Georgian banks and exchanges are required to request documents on the source of funds under AML rules.
- The simplest way to exchange crypto for lari or dollars without risking a frozen account is through a licensed service like Werty — an exchange licensed by the National Bank of Georgia, with offices in Tbilisi, Rustavi, and Batumi, that helps you prepare the required paperwork in advance.
Why Georgia doesn’t tax crypto sales
Georgia taxes income sourced inside the country, while foreign-source income is, in a number of cases, exempt for tax residents. The Tax Code doesn’t single out crypto as a separate type of taxable income, so profit from selling it can be treated as foreign-source income, regardless of which service or exchange handled the transaction.
It’s the same general principle that covers any foreign investment: stocks, bonds, and foreign currency deposits.
Tax residency criteria for the 0% rate
Georgia doesn’t tax crypto gains regardless of your residency status, but that alone doesn’t protect you: if you’re still a tax resident of another country, it may tax the same income. That’s why Georgian tax residency matters, and simply being in Georgia isn’t enough to get it.
The law offers two routes: staying in the country for a set period, or joining a special program for high-income individuals.
The 183-day rule
The most common way to become a Georgian tax resident is to spend at least 183 days in Georgia in any continuous 12-month period ending in the current tax year. The days don’t have to be consecutive. What counts is the total, and every entry and exit is recorded by the border service. If your border-crossing history hasn’t been kept, it may take extra time later to restore it and prove how long you actually stayed.
HNWI status as an alternative
If you can’t physically spend 183 days in Georgia, there’s a program for High Net Worth Individuals (HNWI). Residency is granted if you meet financial thresholds: worldwide assets of over ₾3 million or annual income of over ₾200,000 in each of the past three years, and a proven connection to Georgia, such as a residence permit or at least ₾25,000 of Georgian-source income a year. No minimum stay is required, but the certificate is issued for a specific tax year and must be renewed annually.
Which crypto transactions are tax-free
Any sale or exchange of crypto falls under the 0% rate as long as you hold it as a personal investment. In practice, this covers:
• buying and selling USDT, BTC, ETH, and other assets at a profit in Georgia — no tax on any of the gain;
• holding crypto without selling — paper gains aren’t taxed at all until you sell;
• selling on foreign exchanges — if you’re a Georgian tax resident, the platform’s jurisdiction doesn’t matter.
Stablecoins are generally treated the same way as other crypto assets. The position on NFTs is less settled: Decision No. 201 doesn’t address them directly, so if you trade NFTs regularly, get tax advice first.
When the 0% crypto tax in Georgia stops applying
The exemption only covers transactions an individual makes as a private investor. Once crypto becomes a way to earn money through a business, different rules apply. And in practice, the line between the two isn’t always obvious.
Crypto as payment for services
If you get paid in crypto for work (freelancing, consulting, development) that’s business income, not investment profit, and it’s taxed under the standard rules. The currency you’re paid in doesn’t matter; what matters is the nature of the income: payment for a service.
Small Business Status and the confusion around the 1% rate
Sole traders (individual entrepreneurs) with Small Business Status pay 1% of turnover instead of standard personal income tax. But different sources describe how this regime applies to crypto in different ways.
Legal advisers point out that Small Business Status doesn’t extend to certain activities, including currency operations. Meanwhile, relocation experts note that the Revenue Service may treat active crypto trading as a “currency operation” and strip it of preferential status.
The difference comes down to the nature of the activity. If you’re a freelancer providing IT services, that’s income from services, and the 1% regime can apply as long as your activity isn’t on the excluded list. That list is set out in Government Decree No. 415 (Annex 4) and covers seven categories: activities requiring a special license or permit, production of excise goods, currency exchange operations, medical practice, architecture, legal and notarial work, audit and consulting (including tax consulting), gambling, and staffing/personnel supply. Running a crypto exchange or a custodial wallet service falls under that same currency-exchange carve-out — which is exactly why active crypto trading sits in a grey zone for SBS eligibility, while writing code or consulting on IT architecture for a foreign client does not.
If you systematically buy and sell crypto as a trader or run P2P exchanges, that’s essentially exchange activity, and it calls for a VASP registration with the National Bank of Georgia rather than the Article 88 preferential regime. Mixing both types of income under one sole-trader registration is a common mistake that later leads to questions about your tax return.
Taxes for companies and licensed exchanges
Georgian companies whose core business is crypto (exchangers, trading platforms, and other crypto services) pay profit tax under a model where tax is triggered only when profit is distributed. The rate is 15%. If a company keeps its profit in the business and reinvests it, no tax is charged on undistributed profit.
When dividends are paid to an individual, an additional 5% is withheld at source. Exchanging crypto for fiat as a business is VAT-exempt, just like regular currency exchange.
Companies that provide crypto exchange or custody services professionally must hold VASP (Virtual Asset Service Provider) status issued by the National Bank of Georgia. Without the right registration or authorization, they can’t offer these services to clients as a regulated activity.
Crypto mining tax in Georgia
Mining is treated differently from selling crypto. The mining reward isn’t covered by the exemption: in practice, it is generally treated as Georgian-source income taxed at 20%, while a later sale of the mined coins is exempt.
Selling computing power to clients is treated as a service with its own VAT rules. Mining through a company is taxed under the Estonian model: 15% only on distributed profit.
How to prove the source of funds: a checklist for large transactions
A 0% tax rate doesn’t mean your bank or exchanger won’t ask questions about a large transaction. From roughly ₾30,000 (about $11,000 at the current rate), Georgian exchangers and banks are required under AML rules to request documents proving where the money came from. It’s standard procedure, not a sign that anything is wrong with your transaction in particular.
Below are the documents usually accepted, depending on the source of funds.
| Source of funds | Suitable document |
| Salary or consulting | Employment contract or service agreement |
| Investments and crypto trading | Exchange report + wallet transaction history |
| Sale of property | Sale and purchase agreement (real estate, car, business) |
| Savings | Bank statement covering the savings period |
| Inheritance or gift | Inheritance/gift certificate + donor’s documents |
| Loan | Loan agreement |
| Freelance income | Contracts and statements from platforms (Upwork, Fiverr, etc.) |
The better prepared your documents are, the faster the exchange goes. At licensed crypto exchanges like Werty, a transaction with a complete set of documents can take just a few minutes. If something is missing, processing may take longer.
Werty case study: how a client exchanged a large sum with no questions from the bank
A client came to us who had built up about $60,000 in ETH over three years through regular purchases on a foreign exchange. He decided to convert part of crypto into lari to buy an apartment in Tbilisi.
He had been living in Georgia for more than two years and could prove residency with his border-crossing stamps. However, he had no documents on the source of funds yet, so the bank receiving the lari could have put the transfer on hold.
Our manager helped the client put together, in advance, an exchange report covering all his ETH purchases over the three years, and explained how to get a tax residency certificate. The deal was done at our Tbilisi office: both the cash and non-cash parts went through without a single request from the bank, and the whole process, from request to funds landing in his account, took two days, including arranging the office visit.
Ready to exchange crypto for lari or dollars in Tbilisi, Rustavi, or Batumi? Leave a request on Werty’s official website to check the current rate and book your exchange or contact Werty’s manager to get a free consultation.
FAQ
Most individuals have no formal obligation to file a separate return for this income, but it’s a good idea to keep your own record of transactions in case the Georgia Revenue Service or your bank asks you to prove the source of funds.
The 0% rate in Georgia doesn’t depend on residency. But to make sure your home country doesn’t tax the same gains, you usually need Georgian tax residency — without living here, that’s only possible through the HNWI program, if you meet its financial criteria and have a connection to Georgia. Even then, without actually living in the country, it’s harder to prove a genuine connection to Georgia to your bank when making large transactions.
There are no official signals that it will be scrapped. Georgia has kept this regime for several years while building out VASP regulation, which points to the system being strengthened rather than wound down. That said, no jurisdiction can guarantee what happens in the future.
No. A VASP registration with the National Bank of Georgia is required for anyone providing exchange services professionally — that is, regularly and for third parties. A private individual selling their own crypto once doesn’t fall under that definition. But that’s exactly why banks look more closely at P2P transfers: from the outside, it’s hard to tell a one-off sale by an investor from systematic unlicensed activity.