New 2026 Regulations for Individual Entrepreneurs and Hiring Foreigners in Georgia

On March 1, 2026, the updated Law on Labor Migration took effect in Georgia. For most foreigners without a residence permit who are engaged in gainful employment—including employees, self-employed individuals, and contractors—it is now mandatory to obtain the “right to work.” For those already active as self-employed, the deadline for submitting documents without incurring penalties has been extended to May 1, 2026. In this article, we will break down the required steps for individual entrepreneurs (IPs) and employers hiring foreign nationals. We will also address a key question: is it legal to perform cryptocurrency operations in Georgia now, and how can you do it without risks to your bank account?

Article reviewed by Mishel Ivanidze, Legal Counsel at Werty crypto exchange

Werty helps entrepreneurs solve their business’s financial challenges: from converting cryptocurrency into USD, EUR, or GEL to providing cash withdrawals in Tbilisi and Rustavi. With us, you can officially transfer funds to Georgian bank accounts and purchase cryptocurrency directly from your company account. We operate under a license from the National Bank of Georgia, ensuring all transactions are fully legal. Contact our manager on WhatsApp or submit a request on our website—we will help you find the most convenient solution.

What exactly changes from March 1, 2026?

The law divides all foreigners engaged in paid activity in Georgia into two categories. The first step is to understand which one you belong to.

Self-employed, IEs, and Independent Contractors

If you work for yourself—registered as an individual entrepreneur (IE), performing services under contracts with multiple clients as a freelancer/contractor, or acting as a partner in a company providing services—you fall into the category of self-employed foreigners. This group is required to obtain a separate “Right to Labor” status, which is not tied to a specific employer.

Now, IE status or having a Residence Permit does not grant an automatic right to work—the law requires you to independently obtain a separate permit through the Labor Migration Portal. This permit is not tied to a specific client; it confirms the overall right to engage in a particular type of activity.

Salaried Employees (Labor Migrants)

If you have an employment contract with a Georgian employer (including remote work for a local company), you are considered a labor migrant.

In this case, the employer is responsible for initiating the “right to work” application process. The procedure includes a mandatory job posting on Georgia’s labor market management portal to verify the availability of local candidates (this requirement does not apply to employees who are already with the company). After this step, the application can be submitted through the Georgian labor migration portal. The issued permit is strictly tied to the specific employer and the designated position.

Please note that remote work for a foreign company while in Georgia remains a complex legal issue. Since the law focuses on domestic employment, the status of remote employees of foreign companies remains ambiguous—in such cases, it is advisable to consult a lawyer.

Why everyone says “starting in March”, but for IEs, the key date is May 1, 2026

The new rules officially come into force on March 1, 2026. However, the regulator has provided for transition periods during which no sanctions will be applied:

If you are already working in Georgia as an IE or self-employed — you have time until May 1, 2026, to submit your application and legalize your status without the risk of being fined. Do not delay: application processing takes up to 30 calendar days (expedited processing—up to 10 working days).

Who is considered self-employed in Georgia and what is required for legalization

According to the new regulations, a self-employed foreigner is a citizen without permanent residency who earns income from activities in Georgia but is not in an employment relationship with a local employer. This definition includes:

• Individual Entrepreneurs (IEs), including small and micro-businesses;

• Independent contractors and freelancers working under contracts;

• Partners, participants, and directors of companies who personally provide services or conduct trade activities (rather than simply owning a share).

What a self-employed foreigner needs to do:

1. Independently submit an application for the “Right to Labor”. For those already working in the country, the deadline for submission without penalties is May 1, 2026.

2. Complete an online video interview with a representative from the Employment Agency to verify your identity and the nature of your activities.

3. Prepare a document package: an extract from the IE registry, current contracts with clients, invoices, Georgian bank statements, or a certificate of annual turnover from the tax office. For new projects, an activity description or business plan may be required.

Please note that the exact list of documents and procedural nuances may change—we recommend following the news from the Ministry of Labor of Georgia.

How Employers in Georgia Can Now Hire Foreigners

For company owners and HR specialists, the procedure for hiring foreign employees is now strictly regulated.

The action plan for the employer:

1. Post the vacancy on the labor market management portal for at least 10 working days. This is necessary for the Employment Agency to be able to propose candidates from among local citizens.

2. If no suitable candidate is found, prepare the terms and a draft employment agreement with the foreign specialist

3. Submit an application for the “Right to Work” through the Labor Migration Portal, attaching the vacancy details and the contract.

4. Await the regulator’s decision: the standard processing time takes up to 30 calendar days, while the expedited process takes up to 10 working days.

5. After the application is approved, the foreigner can submit documents to obtain a Residence Permit based on the issued “Right to Work”.

The “Right to Work” is strictly tied to a specific employer and position. If an employee moves to another company, the entire procedure must be completed from scratch.

Salaried employees whose employers were registered in the registry before March 1, 2026, are granted an extended transition period—until January 1, 2027—to bring their documents into full compliance with the new law.

Can IEs and foreigners exchange crypto in Georgia in 2026

Yes, crypto operations in Georgia are officially permitted. However, three key aspects must be considered: the service provider, how your activity is formalized in terms of taxes and status, and banking compliance requirements.

1. VASP Regulation

The National Bank of Georgia (NBG) licenses and monitors Virtual Asset Service Providers (VASP). By law, these companies are required to adhere to strict AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) standards and perform full KYC (Know Your Customer) identification. If you use an officially registered exchange or platform, you undergo a formal verification process, making your transactions legitimate from a regulatory standpoint.

2. Tax and Legal Framework

Individuals in Georgia can exchange cryptocurrency for personal purposes: as a rule, such income is not taxed if it is not the result of commercial activity. However, if the exchange becomes systematic and is conducted for business purposes, it may be classified as VASP activity, which requires registration with the National Bank of Georgia. The distinction between personal exchange and commercial activity directly depends on the frequency, volume, and consistency of the transactions.

3. Banking Compliance

This is the most critical stage when withdrawing funds into fiat. Banks have the right to request documentary proof of the source of funds, especially when large amounts are credited.

To minimize the risks of account blocking, it is best to prepare in advance:

• An exchange or wallet statement with a transparent transaction history;

• Documents confirming the source of the initial funds (contracts, invoices, tax reports);

• Supporting documents from the licensed VASP provider through which the conversion was carried out.

The table below will help you choose the most suitable exchange method:

How to Legally Exchange Crypto via Werty

Werty is a cryptocurrency exchange service operating under the supervision of the National Bank of Georgia (attained VASP status in 2025). This ensures that operations are conducted within current regulatory frameworks and the verification procedure (KYC) is standardized.

The verification procedure includes:

• Providing a passport and a selfie (remotely or in the office);

• Filling out a brief questionnaire (~5 minutes).

Options for receiving funds:

• Cash withdrawal (in Tbilisi and Rustavi);

• Transfer to a Georgian bank account.

Timing and Details:

• Transaction processing time takes from 2 minutes to several hours (depending on the recipient bank’s regulations).

• A mandatory verification of banknotes is conducted during cash withdrawals.

Be cautious of offers to exchange cryptocurrency without verification or documentation. Such transactions violate regulatory requirements and increase the risk of losing your funds. Use only official platforms with verified status. Message our manager on WhatsApp or submit a request via the form below—we will help you find a convenient and secure solution for your business.

How the new “Right to Labor” rules indirectly affect cryptocurrency operations

At first glance, labor legislation and crypto exchange seem like unrelated topics. However, they interact closely through banking compliance. When large sums are credited to an account, the bank or financial provider will first ask: “Where did the money come from”?

Legal employment status significantly simplifies the process of proving income:

• An IE with active registration and contracts can provide invoices and tax returns.

• A self-employed individual who has obtained the “Right to Labor” has an officially confirmed status, making their activities clear and transparent to the bank.

• If the status is not formalized, justifying the source of funds to the bank becomes much more difficult, creating additional risks during transaction monitoring.

Securing your status by May 1, 2026, is not just a matter of legal compliance but a vital condition for stable operations with bank accounts and financial transactions in Georgia.

Checklist: What an IE and an employer must do before May 1, 2026

If you are an IE / self-employed foreigner:

• Define your status: If you are an IE, independent contractor, or an active partner in a company—you fall into the self-employed category.

• Collect documents: IE registry extract, active contracts with clients, invoices, and bank statements.

• Submit an application via the Labor Migration Portal; it is best to do this by early April 2026 to allow time for processing.

• Complete the video interview and await the official decision.

• After the “right to work” is approved, apply for or renew a work residence permit if necessary. If a foreign national already holds any valid residence permit, they do not need to apply for a new work residence permit.

If you are an employer hiring a foreigner:

• Register the company in the Employment Agency database.

• Post the vacancy on the labor market management portal for at least 10 working days to test the local labor market.

• If no suitable candidates are found among local citizens, prepare a draft contract with the foreign specialist.

• Submit an application for the “Right to Labor” via the Labor Migration Portal. Processing time: up to 30 calendar days (expedited: 10 working days).

• Ensure the employee submits documents for a Residence Permit (VNJ) based on the issued permit.

If you plan to exchange cryptocurrency:

• Choose only licensed VASP providers authorized by the National Bank of Georgia.

• Prepare source of funds documentation: wallet statements, transaction history, and documents confirming your primary income (tax returns, contracts).

• Confirm the available payout methods (cash or bank transfer with a provided receipt).

• Avoid “no-verification” schemes—this is a direct risk of having funds blocked by the bank and losing account access.

FAQ

Who is considered a self-employed foreigner in Georgia in 2026?

Any foreign citizen without permanent residency who conducts paid activities in the country without being in an employment relationship with a local employer. This includes IEs and freelancers.

Why is the deadline for IEs May 1, 2026, if the law takes effect on March 1?

March 1 is the official launch date of the new system. However, a grace period is provided for those already operating at that time. They have until May 1, 2026, to submit their application without the risk of fines.

I am a salaried employee, and my employer was already in the registry before March 1, 2026. Do I have an extension?

Yes. For employees whose companies were registered in the labor migration system before March 1, 2026, an extended transition period is set until January 1, 2027.

Is an employer required to publish a vacancy on Worknet? For how many days?

Yes, this is a mandatory step. The vacancy must be open for 10 working days. Only if no suitable candidate is found among Georgian citizens during this time does the employer gain the right to hire a foreigner.

Is it legal for a foreigner or an IE to exchange cryptocurrency in Georgia in 2026?

Yes, it is entirely legal. It is important to conduct operations through providers authorized by the National Bank of Georgia, undergo KYC verification, and maintain documents proving the source of funds for the bank.

Does an IE need a “work permit” just to exchange crypto?

Formally, no, as currency exchange is not considered labor activity. However, having an official status (IE with a “Right to Labor”) makes your profile transparent to the bank and significantly eases compliance checks when converting large sums.

What documents help prove the source of funds when exchanging large amounts?

Typically, this includes an exchange/wallet statement with transaction history; contracts and invoices (for IEs/freelancers); tax returns; and official reports from the VASP provider that conducted the exchange.

This article is for informational purposes and does not constitute legal or financial advice. For specific questions, we recommend contacting licensed specialists and following official clarifications from the Ministry of Labor of Georgia and the National Bank of Georgia.