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A New Phase in Georgia’s Entry Policy Georgia has long been known for its relatively flexible entry regime, allowing many nationalities to stay with minimal restrictions. However, beginning in 2026, changes to entry regulations are expected to reshape how foreign nationals enter and remain in the country. This is less about tightening borders and more about clarifying categories and aligning policy with actual residency patterns. Why the Change Now? In recent years, Georgia has experienced an increase in long-term foreign residents and cross-border mobility. As tourism, remote work, and business activities began to overlap, the distinction between short visits and de facto residence became less clear. The upcoming adjustments aim to bring greater consistency between legal status and real-world activity. What Is Likely to Change The reform is expected to emphasize: Clearer definitions of stay purpose More structured tracking of duration and re-entry Encouragement of appropriate visa categories for long-term stays Alignment between declared intent and actual activity The system will likely shift from informal flexibility toward structured classification. Will “Business as Usual” Still Work? Previously, some individuals relied on repeated visa-free entries to maintain extended stays. Under the revised framework, authorities may pay closer attention to whether individuals are genuinely visiting as tourists or effectively residing or working in the country. Ambiguity will become harder to sustain. Who Should Pay Attention Those most affected may include long-term repeat visitors, remote workers, and business operators without formal residency status. For these groups, preparing for the new framework before 2026 will be essential. Conclusion: A Move Toward Structure, Not Exclusion The upcoming entry rule changes should not be viewed as exclusionary. Rather, they represent Georgia’s transition toward a more transparent and structured migration policy. For those intending to build long-term ties with the country, aligning one’s legal status with actual activities will become increasingly important in the years ahead.

“The Account Works, but the Card Doesn’t” Many foreigners who open bank accounts in Georgia report that while account opening itself is relatively smooth, debit card usage can be unexpectedly restrictive. These issues are particularly common for non-resident account holders, who may face limitations not immediately explained at the time of account setup. Common Debit Card Issues for Non-Residents Non-residents frequently encounter problems such as declined online transactions, regional usage restrictions, sudden card suspensions, or repeated requests for additional verification. These are not system errors, but outcomes of banks’ compliance and risk-control policies. Why Non-Residents Face More Restrictions From a bank’s perspective, non-resident accounts involve higher uncertainty. Limited visibility into residency status, transaction purpose, and cross-border activity increases perceived risk.As a result, debit card usage is often tightly controlled from the outset. This creates a gap between expectations and actual usability. Practical Ways to Reduce Friction Non-residents can minimize inconvenience by checking usage settings in advance, avoiding unusually large or frequent transactions, preparing explanations for transaction purposes, and relying on more than one payment method. Treating the card as a secondary tool rather than a single all-purpose solution is especially important. Debit Cards Have Limits Georgian debit cards work well for everyday local spending.However, for international e-commerce, subscriptions, or frequent overseas use, limitations are more likely to appear. This is not unique to Georgia, but a common characteristic of non-resident banking worldwide. Conclusion: Usability Depends on Understanding the Rules Debit card issues in Georgia are rarely insurmountable — but they do require realistic expectations. For non-residents, understanding the constraints and planning usage accordingly is key.When treated as a situational tool rather than a universal solution, Georgian debit cards can still play a useful role in personal financial management.

The Myth of Georgia as a Low-Tax Jurisdiction Georgia is often described as a low-tax country due to its simple corporate and personal tax systems. While this reputation is not entirely unfounded, it can obscure the importance of Value Added Tax (VAT), which plays a significant role in business operations. How VAT Works in Georgia VAT in Georgia is an indirect tax applied to certain transactions once a business exceeds a specified turnover threshold. It is levied on sales rather than profits, meaning tax obligations can arise even when a business is not yet profitable. This distinction is critical for anyone planning to operate in the Georgian market. Why VAT Often Comes as a Surprise Many entrepreneurs enter Georgia expecting minimal tax exposure and underestimate the impact of VAT. As a result, they may encounter situations where VAT liabilities arise regardless of operating margins, creating unexpected financial pressure. This gap between expectation and reality is what makes VAT a common issue for new entrants. Operational Impact of VAT Registration Registering for VAT changes how a business operates. Accounting becomes more structured, pricing strategies must be adjusted, and cash flow management becomes more complex. These effects are particularly noticeable in sectors such as tourism, real estate, and cross-border or digital services. Is Georgia Really a Low-Tax Country? Whether Georgia is truly low-tax depends on the business model. Companies focused on exports or non-VATable activities may benefit significantly, while businesses serving the domestic market must carefully account for VAT in their planning. The tax burden is not universal — it is situational. Conclusion: VAT Awareness Is Essential Georgia’s tax system offers genuine advantages, but only when understood correctly. VAT is not a minor detail; it is a core component that can shape profitability and operational structure. Rather than relying on general impressions, businesses should evaluate how VAT interacts with their specific activities before committing to the Georgian market.

Why “10% Interest” Catches Attention Georgia’s bank time deposits are often highlighted with interest rates around 10%, a striking figure in today’s low-interest global environment. However, focusing on the headline number alone can be misleading without understanding the conditions behind it. Is the Interest Rate Truly 10%? It is true that Georgian banks offer relatively high interest rates — but most of these rates apply to deposits denominated in Georgian Lari (GEL). Interest rates on USD- or EUR-denominated deposits are significantly lower.This means the advertised rate must always be considered together with the currency involved. The Overlooked Role of Currency Risk High interest rates come with currency exposure. Even if a GEL-denominated deposit earns 10% interest, depreciation of the local currency can offset or eliminate gains when measured in foreign currency or home currency terms. What appears attractive on paper can look very different after exchange rate movements are factored in. Why Are Lari Interest Rates So High? High interest rates are not unique to Georgia.In many emerging or smaller economies, rates are set higher to compensate for inflation, currency volatility, and economic risk. In this context, interest is best seen as risk compensation, not a free advantage. Practical Considerations for Investors Anyone considering Georgian time deposits should evaluate: Which currency the deposit is in The relative volatility of interest vs. exchange rates Investment time horizon How the deposit fits within overall asset allocation High interest does not automatically mean high returns — it usually signals higher uncertainty. Who This Type of Deposit May Suit Georgian high-interest deposits may suit investors who can tolerate currency fluctuations, use them as part of a diversified portfolio, and focus on medium- to long-term positioning. They are less suitable for those prioritizing capital stability above all else. Conclusion: Interpreting the 10% Figure Wisely Georgia’s time deposit rates are undeniably high by global standards.But the real question is not the size of the interest rate — it is how that rate interacts with currency movements and personal investment goals. Understanding the full picture behind the “10%” figure is essential for making informed and balanced financial decisions.

The Myth of “High Interest and No Tax” Georgian bank time deposits are often promoted with phrases like “high interest” and “tax-free.” While it is true that interest rates in Georgia can be relatively attractive, and local tax treatment appears simple, this perception can be misleading when viewed from a global tax perspective. Local Tax Treatment vs. Global Tax Reality Within Georgia, the taxation of bank interest is straightforward, which leads many to assume that interest income is effectively tax-free. However, this assessment only applies within Georgia itself and does not account for international reporting standards or foreign tax obligations. Why Tax Residency Matters Under CRS Under the Common Reporting Standard (CRS), the decisive factor is not where the bank account is held, but where the account holder is tax resident. Banks report account information to tax authorities based on declared tax residency, and this information is exchanged internationally. As a result, interest income may still be taxable in the account holder’s country of tax residence, regardless of local Georgian treatment. Why “Tax-Free” Is Often Misunderstood The misunderstanding surrounding Georgian deposits stems from several factors: Light or simple local taxation Outdated, pre-CRS information A focus on where tax is not collected rather than where it is owed In the CRS era, transparency has replaced secrecy, and proper reporting has become essential. Practical Considerations for Deposit Holders Anyone considering Georgian time deposits should ensure: Their tax residency status is clearly defined Interest income is assessed under applicable tax laws Account usage can be fully explained under CRS reporting With proper planning, Georgia’s attractive interest rates can be utilized without creating compliance issues. Conclusion: Beyond the “Tax-Free” Label Georgian bank deposits can be a useful tool for asset management, but only when approached with a correct understanding of tax obligations. In today’s global reporting environment, the key question is not whether income is taxed locally, but how it should be handled under the rules of one’s tax residency. Clarity and compliance, rather than assumptions, are what ultimately protect investors in the CRS era.

A Turning Point in Georgia’s Foreign Employment Policy Georgia has long been known for its open and flexible approach to foreign workers.Minimal bureaucracy and ease of entry made the country attractive to entrepreneurs, remote workers, and investors. From 2026, however, Georgia plans to introduce mandatory work permits for foreign nationals, marking a significant policy shift. Why Georgia Is Introducing Work Permits Several factors are driving this change: Rapid growth in the number of foreign workers Difficulty tracking actual employment conditions The need to balance domestic labor markets Gaps between legal frameworks and real-world practices Rather than a simple tightening of rules, the new system aims to formalize and clarify employment relationships. What Will Change Under the New System With work permits in place, foreign employment is likely to become more structured. Employment roles, duration, and employer responsibility will be more clearly defined.This reduces ambiguity, but also means that foreign workers must better understand their legal status. Flexibility will still exist, but within a clearer regulatory framework. What Foreigners and Businesses Should Prepare For Looking ahead to 2026, individuals and companies should assess: Whether their activities qualify as employment How they are formally engaged (employment vs. contract) Whether their work arrangements are legally sustainable This is especially relevant for freelancers, consultants, and remote workers operating across borders. Does This Reduce Georgia’s Attractiveness? At first glance, permit requirements may seem restrictive. However, clearer rules can also increase legal certainty and long-term stability for those committed to living and working in Georgia. The shift represents a move from informal flexibility toward structured openness. Conclusion: Entering the Next Phase Georgia’s planned work permit requirement signals a transition toward a more mature labor and immigration framework. For foreign workers, success will depend not on avoiding regulation, but on understanding it and planning accordingly. Those who adapt early will be best positioned to continue benefiting from Georgia’s evolving economic environment.