Expanding into a new market comes with opportunities but also a long list of legal and compliance challenges.
Many businesses spend months setting up a local entity, only to realize they don’t need one. Others rush into hiring, only to face labor law violations, misclassified employees, and unexpected tax bills.
That’s why top companies are turning to Employer of Record (EOR) services in Georgia. Instead of navigating complex regulations alone, they can hire talent quickly without opening a legal entity, managing payroll, or handling employment contracts.
An EOR takes care of everything behind the scenes. Businesses get access to top talent, ensure compliance, and scale with ease.
Here’s why more companies are making this move in 2025.
Why businesses are paying attention to Georgia
If Georgia isn’t on your radar for hiring, it should be. This country isn’t only stunning landscapes and ancient wine-making, it’s becoming a serious business hotspot.
Sitting right between Europe and Asia, Georgia is a dream location for companies looking to expand. It’s got the Black Sea to the west, Russia to the north, and shares borders with Azerbaijan, Armenia, and Turkey. Translation: It’s perfectly placed for trade, investment, and hiring top talent.
If the Geography lesson is over, let’s get real, hiring in a new country isn’t as simple as posting a job listing and calling it a day. Georgia’s labor laws have their quirks, and the Labor Code of Georgia doesn’t exactly come with a beginner-friendly guide.
One compliance mistake, and a company could be dealing with fines, delays, or a legal headache no one asked for.
What Makes Georgia a Smart Choice?
That’s why businesses aren’t going at it alone. More companies are partnering with Employer of Record (EOR) providers to handle the complicated stuff, employment contracts, payroll, tax compliance, and everything in between. It’s hiring made easy, without the paperwork nightmares.
Languages spoken: English, German, French, Russian, and Georgian.
Currency: Georgian Lari (GEL).
Capital: Tbilisi.
Population: 3.7 million, with a high concentration of skilled professionals.
Business environment: Ranked among the easiest places to do business, thanks to low tax rates and minimal bureaucracy.
Georgia is open for business, and companies that move fast will get ahead. The right hiring strategy means avoiding the roadblocks that slow everyone else down.
Hiring in Georgia
Georgia is attracting companies for one big reason - highly skilled professionals without the high price tag. Salaries here are significantly lower than in Western Europe and the U.S.
Role | United States | Europe | Georgia |
Software Developer | $110,000 | $75,000 | $36,000 |
QA Engineer | $90,000 | $70,000 | $21,600 |
Data Scientist | $72,000 | $54,000 | $26,400 |
Graphic Designer | $50,000 | $42,000 | $18,000 |
Digital Marketer | $66,000 | $52,000 | $21,600 |
Content Writer | $55,000 | $45,000 | $15,000 |
Social Media Manager | $60,000 | $55,000 | $18,000 |
Project Manager | $84,000 | $66,000 | $20,400 |
HR Specialist | $70,000 | $62,000 | $16,800 |
Customer Support Specialist | $40,000 | $33,000 | $12,000 |
Businesses can hire top talent for half or even a third of the cost compared to other markets, without compromising on quality.
A workforce ready to deliver
Georgia has been making big moves in tech, business services, and digital industries. The workforce is multilingual, well-educated, and experienced in working with international clients.
Tech and engineering
Developers: Proficient in PHP, Python, Java, JavaScript, and frameworks like Django, MEAN stack, and Ruby on Rails.
QA Engineers: Skilled in Selenium, JUnit, and TestNG, ensuring products perform flawlessly.
Data Scientists: Experts in R, Python, and TensorFlow, turning raw data into business intelligence.
DevOps Engineers: Optimizing systems with CI/CD pipelines, Docker, and Kubernetes.
Marketing and content
Content Writers: Producing high-quality blogs, tech guides, and business content, all optimized for SEO.
Digital Marketers: Using Google Analytics, SEMrush, Meta, and LinkedIn to drive business growth.
Operations and management
Project Managers: Experienced in Agile, Scrum, and Lean methodologies.
HR Specialists: Handling recruitment, employee engagement, and compliance with ease.
5 reasons to use a global employer of record in Georgia
Expanding into a new country sounds exciting until the paperwork piles up, compliance turns into a guessing game, and payroll feels like solving a puzzle with missing pieces.
That’s why top businesses are choosing an employer of record in Georgia. It’s the fastest, easiest way to hire, pay, and manage talent without the headaches of setting up a local entity.
Let’s break down why this is a game-changer.
1. Hire faster, skip the bureaucracy
You found the perfect candidate in Georgia. Great. Now, without an employer of record, hiring them could take months. You’d need to:
register a local entity
open a bank account
learn Georgia’s labor laws
set up a compliant payroll system
Or, you could skip all of that and have them working in days with an employer of record. No delays. No red tape. Just instant access to talent.
2. Stay compliant without the stress
Labor laws in Georgia aren’t complicated unless you’re trying to figure them out from scratch. There are rules on overtime, sick leave, termination policies, and payroll taxes that change every year.
An employer of record makes sure you stay compliant by handling:
employment contracts that meet local laws
tax withholdings and social security contributions
benefits and leave policies that align with regulations
No legal surprises. No last-minute panic searching for Georgian labor law penalties.
3. Payroll without the guesswork
Running payroll in a foreign country means getting every deduction, tax, and benefit right every single month.
An employer of record takes care of:
salary calculations and tax deductions
social security and pension contributions
payment processing on time, every time
Your only job is to approve the payments.
4. Cut costs, save time
Setting up a legal entity in Georgia isn’t only time-consuming. It’s expensive. Office space, legal fees, compliance checks, and bank setup costs add up fast.
With an employer of record, you avoid all of that. Instead, you get:
one partner handling payroll, compliance, and HR
one invoice covering everything with no hidden costs
no need for extra admin staff or legal teams
Less paperwork. More focus on growing the business.
5. Scale up or down without the hassle
Need to hire one person? Done. Building a remote team? Easy. Scaling down after a project? No problem.
An employer of record gives you the flexibility to:
expand your team without entity commitments
pivot quickly based on business needs
test new markets without long-term risk
It’s the simplest way to grow in Georgia without locking yourself into expensive, time-consuming commitments.
Work hours and overtime in Georgia
The standard workweek in Georgia is 40 hours eight hours a day, five days a week. It’s a structure that balances productivity with a healthy work-life rhythm.
But not everyone follows the same schedule. Here’s how working hours break down:
Full-time employees: 40 hours per week
Teens (16-18 years old): Limited to 36 hours per week
Teens (14-16 years old): Capped at 24 hours per week
Overtime rules
Some days, work doesn’t stop when the clock does. Overtime is allowed in Georgia, but there are strict rules to keep it fair.
Overtime pay: Employees must be paid 150% of their regular hourly wage for overtime hours.
Maximum working hours: Total hours, including overtime, cannot exceed 48 hours per week.
Rest periods: Employers must provide at least 12 hours of rest between shifts.
Employee rights and employer responsibilities
No forced overtime: Unless it’s outlined in the employment contract or the nature of the job requires it, overtime is voluntary.
Written agreements: Overtime policies should be included in contracts to prevent disputes.
Georgian leave policies
Georgia has generous leave policies that support work-life balance and employee well-being.
Public holidays in Georgia
Georgia takes its holidays seriously, blending cultural, religious, and national celebrations throughout the year.
Here’s what’s on the calendar for 2025:
New Year’s Day – January 1 (Wednesday)
New Year’s Holiday – January 2 (Thursday)
Orthodox Christmas Day – January 7 (Tuesday)
Orthodox Epiphany – January 19 (Sunday)
Mother’s Day – March 3 (Monday)
International Women’s Day – March 8 (Saturday)
Independence Restoration Day – April 9 (Wednesday)
Orthodox Good Friday – April 18 (Friday)
Orthodox Holy Saturday – April 19 (Saturday)
Orthodox Easter Sunday – April 20 (Sunday)
Orthodox Easter Monday – April 21 (Monday)
Victory Day – May 9 (Friday)
Saint Andrew the First-Called Day – May 12 (Monday)
Day of Family Purity and Respect for Parents – May 17 (Saturday)
Independence Day – May 26 (Monday)
Saint Mary’s Day (Mariamoba) – August 28 (Thursday)
Svetitskhovloba (Day of Svetitskhoveli Cathedral) – October 14 (Tuesday)
Saint George’s Day (Giorgoba) – November 23 (Sunday)
Public holiday dates are usually fixed, but it’s always smart to double-check official announcements.
Vacation days in Georgia
Employees in Georgia receive:
24 business days of paid vacation per year
15 calendar days of unpaid leave per year
That’s plenty of time to reset, recharge, and come back refreshed—leading to better productivity and fewer burnout issues.
Maternity and paternity leave in Georgia
Georgia’s parental leave policies are structured to support working families.
Maternity leave
126 calendar days of paid leave
Extended to 140 days for complicated births or multiple births
Can be taken before or after childbirth
Paid by the state, though some employers offer additional support
Childcare leave
Parents can take two weeks of unpaid leave per year
Applies until the child turns five
Probation and termination in Georgia in 2025
Hiring is easy. Getting it right? That’s where things get tricky.
An Employer of Record Georgia makes hiring seamless, but what about when things don’t work out? Whether it’s a probation period that didn’t go as planned or an unexpected termination, businesses need to follow the rules.
Here’s how to handle probation and termination in Georgia.
Probation period - a test drive for employers and employees
Think of probation as a trial period for both employer and employee. The Employer of Record Solution ensures everything is documented properly, but here’s the key rule:
Maximum probation period: 6 months
Must be in writing
It’s the perfect way to assess if a new hire fits the role without long-term commitments or legal headaches.
Termination rules - when and how to part ways
Sometimes, things just don’t work out. The key is making sure termination is legal, professional, and well-documented.
Here are the most common reasons for termination in Georgia:
Completion of Contract – The job is done, and the agreement is fulfilled.
Contract Expiry – Fixed-term contracts naturally come to an end.
Breach of Agreement – One party fails to uphold their obligations.
Invalid Agreement – If the contract is no longer legally valid.
Mutual Agreement – Both employer and employee agree to move on.
Court Rulings – If a legal decision prevents the employee from continuing their role.
Long-Term Disability – If an employee is incapacitated for 30 consecutive days or more than 50 days within six months.
Company Closure – The employer shuts down operations.
An Employer of Record Solution ensures all terminations are handled legally, reducing risks for businesses that hire in Georgia.
Notice period - keeping it professional
Employees planning to resign must provide 30 days' written notice.
This gives businesses enough time to manage transitions, ensuring smooth handovers and proper offboarding.
For companies using Employer of Record Services, notice periods are managed efficiently, ensuring compliance with local labor laws.
Severance pay - ending things on a fair note
If an employer initiates termination, the departing employee must receive at least one month’s wages as severance.
It’s not only for compliance but recognizing the time and effort they put into the business.
Why businesses use employer of record services in Georgia
Handling terminations the wrong way can lead to legal headaches. That’s why top businesses choose an Employer of Record Payroll Services to manage everything from hiring to offboarding, ensuring compliance every step of the way.
Taxes and contributions in Georgia
Why are companies choosing Employer of Record Companies to hire in Georgia?
Simple. Georgia’s tax system is one of the most business-friendly in the world.
Low rates. Clear regulations. And plenty of incentives for global companies expanding here.
Here’s why businesses love Georgia’s tax setup:
Tax type | Rate | Who pays | Notes |
Corporate Income Tax | 15% | Companies | On dividends |
Personal Income Tax | 5.49% (2024) | Individuals | Flat rate, some exceptions |
Rental Income Tax | 5% | Landlords | Residential property |
Small Business Tax | 19% | Qualifying Businesses | Restrictions apply |
Foreign Income Tax | 0% | Individuals | Exempt |
Property Tax | Up to 1% | Varies | Companies & individuals |
Land Tax | 0.24 GEL/sq. meter | Landowners | Non-agricultural land |
VAT | 18% | Consumers | Goods & services |
Wage Tax | 20% | Employers/Employees | Plus pension contributions |
Withholding Tax | Varies | Varies | Dividends, services, etc. |
Corporate income tax
Flat 15% rate
Applies only to distributed profits
Reinvesting in the business = tax-free growth
This follows the Estonian model, meaning businesses that reinvest don’t get taxed until they withdraw profits.
What does this mean?
If earnings are reinvested into the business, there’s no corporate tax until those profits are distributed. That’s a major advantage for growing companies.
Personal Income Tax
20% flat rate on income earned in Georgia.
No tax on foreign-sourced income for individuals.
For companies hiring international talent through an Employer of Record Georgia, this means a straightforward payroll tax structure with no hidden complexities.
That’s right, if an employee is earning from outside Georgia, there’s no tax on it.
Special tax incentives for businesses
Georgia offers incentives that make hiring here even more attractive:
Small Business Status – Lower tax rates for entrepreneurs.
Free Industrial Zones (FIZs) – Tax exemptions for manufacturers and exporters.
International Company Status – Exclusive tax benefits for IT and global service firms.
Double Taxation Treaties
Georgia has tax treaties with 56 countries, meaning businesses and employees don’t get taxed twice on the same income.
With an Employer of Record Solution, companies expanding in Georgia get full compliance with tax laws without navigating the red tape alone.
Setting up a local entity in Georgia - worth the effort or better alternatives?
Expanding into Georgia is already a great move, the big decision is how.
Some businesses set up a local entity, taking full control of operations. Others use an Employer of Record Georgia to hire fast, stay compliant, and skip the red tape.
So which one makes sense for your business?
Let’s break it down.
Local entity vs. employer of record which one wins?
Factor | Setting Up a Local Entity | Employer of Record (EOR) |
Speed | Can take weeks or months. Registration, compliance, and banking setup take time. | Hire in days. The Employer of Record Services already has everything in place. |
Cost | High upfront costs—legal fees, office space, bank accounts, and admin overhead. | Flat monthly fee per employee, no hidden costs or setup fees. |
Compliance | You're on your own. Local labor laws, taxes, and regulations require dedicated expertise. | Employer of Record Solution ensures full compliance with Georgian laws. |
Flexibility | Difficult to scale up or down. You're committing for the long term. | Global Employer of Record lets you scale fast with zero long-term commitments. |
Control | Full operational control, including payroll, policies, and local strategy. | You manage day-to-day work, while the EOR handles the legal employer role. |
Risk | High—compliance mistakes lead to legal issues and penalties. | Low - the Employer of Record Georgia takes on legal risk. |
Payroll & Taxes | Requires setting up local payroll and tax systems. | Employer of Record Payroll Services manage payroll, taxes, and benefits seamlessly. |
Best For | Businesses planning a permanent presence in Georgia. | Businesses looking for a quick, compliant entry with less commitment. |
When does a local entity make sense?
A local entity is a good fit if:
Georgia is a long-term hub for your business strategy.
You’re ready for significant investment in office space, legal infrastructure, and hiring.
You have in-house experts who can manage local laws, labor rules, and tax compliance.
Pro Tip: With Gegidze, you can incorporate a company in Georgia remotely in one day no on-site visits required.
Why an employer of record might be the smarter play
An Employer of Record Georgia makes expansion faster, easier, and risk-free. It’s the best choice if:
You need to hire talent fast without setting up a local company.
You want to avoid compliance risks - payroll, taxes, and labor laws are handled for you.
You prefer flexibility - scale your team up or down without long-term commitments.
Not sure which route to take? Let’s talk.
We help businesses hire in Georgia the way that makes the most sense for their goals.
Whether you need full company incorporation or the speed and ease of an Employer of Record Solution, we’ll help you navigate the best option.
Get in touch today and let’s map out your expansion strategy.
Frequently Asked Questions (FAQs)
What is the best Employer of Record service in Georgia?
The best Employer of Record in Georgia depends on your unique business needs. Look for a provider that offers full compliance support, smooth onboarding, and reliable payroll management. For example, a global EOR like TeamUp lets you hire in Georgia without needing to set up a local entity, so you can focus on growing your business.