Expat Finance

Georgia Nomad Visa: Managing Lari (GEL) for Remote Workers

A comprehensive guide for digital nomads utilizing the Remotely from Georgia program, covering lari-denominated asset management, bank account opening, and tax planning for IT professionals.

#Georgia #nomad visa #lari #remote work #IT relocation

Georgia Nomad Visa Overview

Georgia, a small nation of approximately 3.7 million people in the Caucasus region, has rapidly gained attention as one of the world's most digital nomad-friendly countries. The "Remotely from Georgia" program, introduced in 2020, is an innovative initiative welcoming remote workers from around the world, attracting many IT professionals.

Georgia's appeal extends beyond easy visa acquisition. Low living costs, a flat tax system, rapidly developing IT infrastructure, and rich natural and cultural heritage provide unique value for long-term residents.

Why Georgia Is Chosen

Category Georgia's Features Comparison
Visa Requirements Most nationalities: 1 year visa-free Schengen zone: 90-day limit
Living Costs $1,000-1,500/month comfortable living 1/3 to 1/4 of Western Europe
Income Tax Flat 20% (preferential options available) Many countries have progressive rates
Internet High-speed, stable (100Mbps+ common) Top tier in Eastern Europe
English Proficiency High among youth and IT industry No problem in tourist areas

Tbilisi Capital Features

Tbilisi, where most nomads base themselves, is an attractive city blending old architecture with modern infrastructure. Coworking spaces are abundant and cafe culture is well-developed, providing excellent work environments.

  • Population: Approximately 1.1 million (about 30% of national population)
  • Climate: Four seasons, hot summers and mild winters
  • Transport: Metro and buses well-developed, taxis affordable
  • Safety: Among the safest in Europe

Remotely from Georgia Program Details

"Remotely from Georgia" is a remote worker residence program launched in August 2020 during the pandemic. This program enables legal residence and work for up to one year.

Application Requirements

  1. Income Requirement: Demonstrable income of $2,000+ per month
  2. Employment Type: Remote income from foreign companies or self-employment
  3. Health Insurance: Coverage for Georgia stay duration
  4. Criminal Record: No serious criminal history
  5. Passport: 6+ months validity

Application Process

Step Activity Duration
1. Online Application Form completion and document upload on official site 30 min - 1 hour
2. Document Review Income and employment verification 5-10 business days
3. Approval Notice Receive approval letter via email Immediate
4. Entry Enter with approval letter -
5. Registration Complete residence registration locally 1-2 days

Required Documents

  • Passport scan copy
  • Income proof (bank statements, pay slips, contracts, etc.)
  • Employment or business proof
  • Health insurance certificate
  • Photo (passport size)

Many nationalities can stay in Georgia for one year without a visa even without the Remotely from Georgia program. However, program registration facilitates bank account opening and access to various services.

Georgian Bank Account Opening Guide

For long-term stays in Georgia, a local bank account significantly improves convenience. Rent, utilities, daily shopping - useful in all situations.

Major Bank Comparison

Bank Features Foreigner Support Mobile App
TBC Bank Largest, comprehensive services English available Excellent
Bank of Georgia Second largest, strong international transfers English available Good
Liberty Bank Many branches, lower fees Limited Standard
Credo Bank Digital-focused Good Excellent

Account Opening Process (TBC Bank Example)

  1. Branch Visit: Visit nearest branch with passport
  2. Application Form: English-speaking staff support
  3. Identity Verification: Passport, proof of stay (hotel booking, etc.)
  4. Account Opening: Usually same-day completion
  5. Card Issuance: Debit card mailed in approximately 1 week

Account Types and Features

  • GEL Account: Local currency, essential for daily payments
  • USD Account: Dollar-denominated, convenient for foreign income storage
  • EUR Account: Euro-denominated, for European transactions
  • Multi-Currency Account: Manage multiple currencies in one account

Many nomads open both GEL and USD accounts, receiving income in USD and converting to GEL as needed.

Lari (GEL) Characteristics and Trends

The Georgian Lari (GEL), introduced in 1995, is Georgia's national currency. Relatively stable for an emerging market currency, but risks exist.

Lari Basic Information

Category Details
Currency Code GEL
Exchange Regime Managed float
USD Rate (2024) Approximately 2.6-2.8 GEL/USD
Central Bank Policy Rate Approximately 9-10%
Inflation Rate Approximately 3-5% (2024)

Exchange Rate Drivers

Lari exchange rates are influenced by:

  1. Tourism Revenue: Lari strengthens during tourist season (May-October)
  2. Remittances: Georgian overseas workers' remittances support lari
  3. Russian Economy: Neighboring Russia's economic relationship impacts
  4. Central Bank Intervention: Intervention during sharp fluctuations
  5. Political Developments: Reacts to EU membership application and other events

5-Year Exchange Rate History

Year GEL/USD Range Key Events
2019 2.65-2.90 Stable
2020 2.85-3.45 COVID-driven decline
2021 3.05-3.25 Recovery trend
2022 2.65-3.10 Russian influx strengthened lari
2023 2.55-2.75 Stable, slight strength

Since 2022, the influx of IT professionals and business people from Russia has boosted Georgia's economy, keeping the lari firm. This trend is expected to continue near-term.

Asset Management Strategies for Nomads

For nomads residing in Georgia, asset management presents triple challenges: "which currency to earn in, which to hold, and which to spend."

Basic Asset Allocation Approach

Asset Category Recommended Currency Rationale
Daily Living (1-3 months) GEL Local payment convenience
Emergency Fund (3-6 months) USD/EUR Stability, liquidity
Medium-Term Investment USD International investment product access
Home Currency Assets Home Currency Home country return risk hedge

Wise-Powered Transfer/Exchange Strategy

For digital nomads, Wise is one of the most important financial tools.

  • Multi-Currency Account: Hold and manage multiple currencies at low cost
  • Mid-Market Rate: Better rates than banks for conversion
  • Local Bank Transfers: GEL transfers supported
  • Debit Card: Local currency withdrawal available worldwide

Georgia Domestic Investment Options

1. GEL-Denominated Fixed Deposits

Georgian banks offer approximately 8-12% annual interest on GEL fixed deposits. Even accounting for inflation, real returns are positive.

2. USD-Denominated Fixed Deposits

USD deposits offer approximately 3-5% annual interest, an option for those avoiding currency risk.

3. Georgian Government Bonds

Government bonds are relatively safe investments but require local brokerage account.

4. Real Estate Investment

Tbilisi real estate remains reasonably priced with potential for rental income and appreciation. Foreigners can purchase.

High-interest GEL deposits are attractive but carry currency risk. If earning in USD, rather than converting everything to GEL, convert only what's needed - a safer strategy.

Tax System and Filing Practicalities

Georgia's tax system is simple and easy for foreigners to understand. Proper tax planning enables legal tax burden optimization.

Personal Income Tax Basics

Category Rate Notes
Personal Income Tax 20% (flat) No progressive rates
Dividend Income 5% From domestic companies
Interest Income 5% Bank deposit interest, etc.
Capital Gains 0% (under conditions) Stock/real estate sale profits

Tax Residency Determination

Staying 183 days or more in Georgia makes you a tax resident. Residents become subject to worldwide income taxation.

  • Under 183 days: Only Georgian-source income taxed
  • 183 days or more: Worldwide income subject to tax (double tax treaties apply)

Small Business Status

Those with annual turnover under 500,000 lari can register as a "Small Business" and pay only 1% tax on revenue. Popular among freelancers and consultants.

  1. Register with Revenue Service
  2. Pay 1% of revenue monthly or quarterly
  3. No expense deductions, but simple procedures
  4. Additional obligations if hiring employees

Home Country Double Taxation

While there may not be tax treaties between your country and Georgia, Georgia's unilateral foreign tax credit system provides some double taxation relief. Tax authority notification when becoming non-resident in your home country is also important.

IT Professional Living Costs and Realities

Georgia, particularly Tbilisi, offers low costs with high quality of life for IT professionals.

Monthly Living Cost Estimates

Category Budget Standard Comfortable
Rent (1BR) $300-400 $500-700 $800-1,200
Utilities $30-50 $50-80 $80-120
Food $200-300 $300-500 $500-800
Transport $20-30 $50-80 $100-150
Communications $10-20 $20-30 $30-50
Entertainment/Dining $100-200 $200-400 $400-700
Total $660-1,000 $1,120-1,790 $1,910-3,020

Coworking Spaces

Tbilisi has numerous coworking spaces, valuable for IT professional community building.

  • Impact Hub Tbilisi: International network, many events
  • Terminal: Startup-focused, modern facilities
  • Lokal: Cafe attached, casual atmosphere
  • Fabrika: Arts district, popular with creatives

Fees run approximately $100-200 per month, including high-speed WiFi, meeting rooms, coffee, etc.

Expat Community

Georgia's expat community is small but growing, especially among IT professionals.

  • Facebook expat groups
  • Regular expat meetups
  • Language exchange with Georgians learning various languages

Medical Care and Insurance

Georgian private hospitals maintain relatively high standards with English service available. Medical costs are significantly lower than Western countries, but international health insurance enrollment is strongly recommended.

  • SafetyWing: Nomad-focused, approximately $40-80/month
  • World Nomads: Travel insurance base, short-term
  • Local Insurance: Long-stayers, $200-500/year

Georgia ranks among the world's most ideal countries for digital nomads, offering low costs with high quality of life. The Remotely from Georgia program enables legal, comfortable long-term stays. Lari-denominated assets offer attractive high interest rates, but diversified investment considering currency risk is important. Combining local bank accounts with international transfer services like Wise enables efficient fund management. For IT professionals, Georgia is an excellent place to explore new career possibilities while balancing work and life.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any financial instruments. All investment decisions must be made at your own responsibility. Forex and cryptocurrency trading carries risk of capital loss.