Georgia
AI Agent Legal Status: partial · Autonomy: moderate
Legal Framework
Georgia is not an EU member and is not subject to the EU AI Act. The country has implemented a highly favorable business and tax environment, regularly ranking among the world's easiest places to do business. The distributed profit taxation system (Estonian model) taxes only distributed profits. The IT Virtual Zone program provides special tax status for qualifying IT companies.
Key Laws & Regulations
- ◆Law on Personal Data Protection
- ◆Law on Entrepreneurs
- ◆Tax Code
Business Formation
LLC (Limited Liability Company) requires GEL 1 (less than EUR 1) minimum capital. Company formation can be completed within one day at the Public Service Hall. One of the world's simplest formation processes.
Tax Implications
Corporate tax is 15% on distributed profits only (0% on retained profits, following the Estonian model). The IT Virtual Zone offers complete exemption from profit tax and VAT for qualifying IT companies exporting services. This is one of Europe's most favorable tax environments for tech companies.
Opportunities
IT Virtual Zone tax exemptions make Georgia one of the most tax-efficient jurisdictions in Europe for AI service companies. Near-zero formation costs and minimal bureaucracy. Growing Tbilisi tech community and digital nomad hub.
Highlights
IT Virtual Zone offers profit tax and VAT exemption for qualifying tech companies exporting services. 0% tax on retained profits under the distributed profit taxation model. One-day company formation. Extremely business-friendly environment.
Risks & Challenges
Not part of the EU, limiting single market access. Geopolitical instability in the region. Small domestic market. Banking system less developed than EU jurisdictions. Political tensions may affect stability.