Georgia's Virtual Zone (VZ) is one of the world's most attractive tax regimes for IT businesses. Here's everything NRI IT entrepreneurs need to know.
What is the Virtual Zone?
The Virtual Zone is a special tax regime established by the Georgian government to attract IT businesses. A VZ company pays 0% corporate tax on income earned from providing IT services to non-Georgian clients. The regime is administered by the Georgian Ministry of Finance.
Qualifying Activities
The following IT activities qualify for Virtual Zone status:
- Software development and programming
- SaaS (Software as a Service) products
- Mobile app development
- IT consulting and advisory
- Cybersecurity services
- Data processing and analytics
- Web development and design
- IT infrastructure management
- Game development
- AI and machine learning services
Tax Benefits
| Tax Type | Virtual Zone Rate | Standard Rate |
|---|---|---|
| Corporate Tax (non-GE income) | 0% | 15% |
| Dividend Withholding | 5% | 5% |
| VAT (non-GE services) | 0% | 18% |
| Personal Income Tax | 20% | 20% |
How to Obtain Virtual Zone Status
- Incorporate your Georgian LLC (1–2 days)
- Prepare VZ application: business description, service list, client profile
- Submit to Georgian Ministry of Finance Revenue Service
- Review period: 5–7 business days
- Receive VZ certificate
- Begin operations under VZ regime
Important Conditions
- VZ income must come from non-Georgian clients (income from Georgian clients is taxed at standard 15%)
- The company must genuinely provide IT services (not just hold assets)
- Annual VZ status renewal is required
- Proper accounting records must be maintained separating VZ and non-VZ income
Banking for VZ Companies
TBC Bank and Bank of Georgia are the most NRI-friendly options. Both offer online account opening for non-residents with proper documentation. See our full banking guide →
Start your Georgia Virtual Zone company with Blueberry →
Also read: Complete Guide to Georgia Company Formation | Why NRIs Should Form a Company in Georgia | Estonia vs Georgia for NRI Digital Businesses