Relocation to Georgia: Legal Requirements and Practical Steps
- 2 hours ago
- 34 min read
TL;DR
Relocation to Georgia is an exciting prospect for companies expanding into emerging talent hubs. Georgia has become attractive for international hiring thanks to its liberal visa policies and growing reputation as a tech-friendly locale. But expanding here isn’t as simple as booking a flight; you need to navigate visas, work permits, and local labour laws from day one. In this guide, we’ll break down everything decision-makers need to know, from entry options and new 2026 regulations to employer obligations and step-by-step processes.
We’ll also show how leveraging Employer of Record (EOR) services can simplify relocation and keep you fully compliant (hint: an EOR in Georgia can handle the heavy lifting for you) This conversational, compliance-aware roadmap will help you expand with confidence, avoid costly mistakes, and understand exactly how Team Up – a trusted EOR provider in Georgia – can support your growth.
Quick navigation
New 2026 Work Permit Rules: “Right to Work” Permit Introduction
Employer Obligations When Relocating Foreign Staff to Georgia
How Employer of Record (EOR) Services Simplify Relocation and Compliance
Case Study: How Team Up Relocated a Remote Worker from China to Georgia
Actionable Tips for Employers Hiring Foreign Workers in Georgia
Conclusion: Expand to Georgia with Confidence. Team Up Can Help
Why Georgia? 1% and 0% Regimes
Georgia’s tax system is the primary reason founders "love" the Marmite. Unlike the "war crime" tax brackets of Western Europe, Georgia offers three distinct paths for IT and small businesses:
Small Business Status (The 1% Path)
Available to Individual Entrepreneurs (IEs) with a turnover up to 500,000 GEL (~$180,000).
The Catch: Certain "professional services" like consulting, legal work, and staffing are excluded.
The Perk: You pay 1% on gross turnover. If you exceed 500,000 GEL, the excess is taxed at 3%.
Virtual Zone Person (The 0% Path)
The holy grail for IT companies exporting software.
Benefit: 0% Corporate Income Tax (CIT) on profits from exported digital services.
Condition: You must create the product within Georgia and deliver it to non-resident clients.
Dividends: Taxed at 5% (often reduced to 0% via double tax treaties).
International Company Status (The 5% Path)
Designed for larger IT firms with at least two years of experience.
Benefit: 5% CIT and 5% Personal Income Tax (PIT) for employees.
Visa-free Entry and E-Visas: Getting Into Georgia Legally
One of the reasons Georgia is popular with expats and remote-working teams is its extremely liberal visa regime. Citizens of the United States, the United Kingdom, the European Union, and 90+ other countries can enter Georgia visa-free and stay for up to one full year. In practical terms, that means many foreign hires (from countries like the US, Canada, most of Europe, Israel, Turkey, etc.) can simply show up in Georgia with a passport and have permission to remain for 365 days without any special visa. This visa-free entry even allowed foreigners to live, work or study in Georgia for a year under previous rules – a remarkably open policy by global standards.
For those nationals not eligible for visa-free entry, Georgia offers an Electronic Visa (e-Visa) system. An e-Visa is an online visa that citizens of certain countries (for example, countries in parts of Asia, Africa, and Latin America that aren’t on the visa-exempt list) can obtain before travel. The e-Visa typically allows short stays (often 30 or 90 days, depending on the country) and is a convenient alternative to visiting a Georgian consulate. However, an e-Visa is generally for short visits – if you plan to relocate staff for work, you will likely need to go beyond a simple tourist or short-term visa.
Key point: Entering Georgia is usually the easy part. Most Western and Asian nationalities don’t need a visa to get in, and others can often get an e-Visa online. The real work begins after entry if that foreign team member is going to legally work in Georgia long-term. That’s where residence permits and the new work permit rules come into play (more on these below). Always check the latest entry requirements for your employee’s nationality, and plan the visa step early in your relocation process.
Residence Permits for Foreign Workers in Georgia
Staying in Georgia beyond the initial allowed period (e.g. beyond the 1-year visa-free stay) or formally taking up employment requires obtaining a residence permit. A residence permit is essentially the document that lets a foreign citizen reside in Georgia for a longer duration, and it comes with an ID card once approved. There are several types of residence permits in Georgia, but the most relevant for relocating employees is the Work Residence Permit.
Work Residence Permit: This permit is for foreigners coming to Georgia for labour or entrepreneurial activities. In practice, it’s what an employer would seek for a foreign employee who will be working in Georgia. To qualify, there are a couple of important criteria:
The employer company’s annual turnover must exceed 50,000 GEL per foreign employee hired. This means if you have one foreign employee, your company should gross at least 50k GEL in revenue; two foreign employees require 100k GEL, and so on.
The foreign employee’s monthly salary must be at least 5 times the Georgian minimum wage. The minimum wage in Georgia is relatively low (for reference, 5x the minimum wage comes out to only a few hundred US dollars), so most skilled expat hires will easily meet this income threshold. The idea is to ensure that foreign workers are genuinely skilled/professional hires and not displacing local labour for low-wage jobs.
A work residence permit can be issued for up to a year (often renewable) or even up to 6 years in some cases, and after 6 years of continuous residency, one could apply for permanent residency. Notably, as of 202,6 there is also a new special three-year residence permit for IT professionals as part of Georgia’s push to attract tech talent. This is essentially a “Digital Nomad” or IT visa program that allows qualified tech entrepreneurs or remote workers to get a 3-year residency if they meet certain criteria (such as proving an income of around $25,000/year in the IT field). For most standard employees, though, the normal work residence permit will be the route to take.
Other Residence Permits: Georgia also offers other categories like Short-Term residence permits (often for those buying property above a certain value), Investment residence permits (for significant investors, e.g. $300k investment in Georgia), Study residence permits (for students), and Permanent residence for those who have lived in Georgia for many years or meet specific investment criteria. For example, buying property worth over $100,000 (soon to be $150,000 from March 2026) can qualify someone for a short-term residence permit. However, these are less likely to apply to a typical employer relocating staff unless you have a very unique situation. The main focus for an employer will be the work residence permit for any foreign staff they are hiring locally.
Important: Obtaining a residence permit is a separate step from the initial entry visa. In many cases, your employee can enter visa-free or on a short visa, then apply for the work residence permit from inside Georgia. The application is submitted to the Ministry of Justice (typically via the Public Service Hall in Georgia), and if approved, the person receives a residence card. It’s wise to initiate the residence permit process soon after the person arrives (or even before arrival, if possible, through a D1 work visa from abroad) to ensure they remain in legal status once their initial entry period expires. Also, keep in mind the financial criteria – ensure your company’s revenues and the offered salary meet the requirements, the application could be denied (common pitfall: small startups sometimes overlook these criteria and face residency rejection).
New 2026 Work Permit Rules: “Right to Work” Permit Introduction
Hiring foreigners in Georgia has historically been straightforward – if someone had legal residency (or even was just in the country on a visa-free entry), they were generally allowed to work without any special work permit. Unlike many other countries, Georgia did not have a formal work authorisation system in the past. That is now changing. In 2025, Georgia passed amendments to its law on labour migration, and effective March 1, 2026, most foreign nationals working in Georgia will be required to obtain a Work Permit. This “Right to Work” permit is a new layer of approval in addition to the visa or residence permit.
Here’s what we know about the new work permit system coming in 2026:
Who needs a Work Permit?
Essentially, any foreign national working in Georgia who is not a permanent resident will need this permit. This includes foreigners employed by Georgian companies, foreigners seconded to Georgia, and even self-employed foreigners earning income in Georgia (for example, a foreign freelancer or entrepreneur based in Tbilisi). If you have foreign staff on local contracts or payroll, assume they need to go through the work permit process.
Exceptions are limited: those with permanent residency won’t need a permit, and neither will certain groups like diplomatic staff, accredited journalists, refugees/asylum seekers, or holders of investment residence permits. There’s also discussion that fully remote workers for foreign companies (the classic “digital nomads” who are in Georgia but working for an overseas employer) might be exempt – this detail is still being clarified. But if you’re directly employing someone in Georgia’s local labour market, count on needing the permit.
What’s the Employer’s Role
The burden will be on the employer to apply for the work permit on behalf of the foreign employee. This means once you hire a foreign national (or decide to relocate an existing employee to Georgia), you – or your local representative – must submit a work permit application to the authorities.
Typically, this will require an employment contract, proof of the employee’s qualifications, and possibly evidence that the hire won’t displace a Georgian worker (the law mentions authorities can refuse permits deemed “detrimental to the local labour market”). Plan for some paperwork and up to 30 calendar days of processing time for the permit to be approved. The permit will likely be tied to that specific employer and role, meaning if the employee changes jobs, a new permit is needed.
Timing and Transition Flow
The law kicks in on March 1, 2026, for new workers. There is a transition period until January 1, 202,7 for foreign nationals already working in Georgia before March 2026. In other words, if you have an expat employee who started in 2025 or early 2026 with no work permit (because none was needed), they will have until the end of 2026 to obtain a permit under the new system. After that, working without a permit will be a violation. Don’t wait until the last moment – it’s wise to start getting your existing foreign staff permitted as early as possible in 2026 to avoid a rush at year-end.
Penalties for Non-compliance
Georgia is getting serious about enforcement. Hiring or employing a foreigner without the proper work permit will incur fines for both the employer and the employee. The base fine is 2,000 GEL (Georgian Lari) for each offence (approximately $700) for each party, and it doubles for a repeat offence within a year, and triples for subsequent offences.
For example, if a company keeps an undocumented foreign worker and gets caught twice, the second incident could cost 4,000 GEL, and a third time 6,000 GEL, etc.
There are also fines for related violations – such as failing to present documentation or hindering labour inspectors (starting at 1,000 GEL), or not informing authorities when a foreign employee’s contract is terminated or extended. In extreme cases, continued non-compliance could even lead to revocation of the foreigner’s residency and deportation; the laws explicitly emphasise tighter control and the ability to remove those working illegally. Bottom line: this is not something to ignore.
Come 2026, “hoping no one notices your overseas hire working on a tourist stamp” is a recipe for fines and headaches.
Work permit & visas interplay
Interestingly, the new law positions the work permit as a prerequisite for obtaining a long-term work visa (D1) or work residence permit.
In practical terms, this means that if a foreign employee needs to get a D1 work visa to enter Georgia, they’ll likely need the work permit approval first as part of that visa process. Similarly, if they plan to get a labour residence permit, that too might require having the work permit in hand. We’ll see implementation details, but expect a more sequential process: job offer to work permit to work visa/residence. This is a shift from the old way, where someone might get a residence permit just based on a job contract and salary criteria.
Now the work permit adds an extra checkpoint to ensure the government approves the employment itself before granting residency. Employers should budget a bit more time (~30 days processing for the permit) into their hiring timeline for foreigners.
In summary, the 2026 work permit rule is the game-changer for compliance. It’s aimed at formalising foreign employment in Georgia (officials are trying to corral what they estimate as tens of thousands of foreigners working “illegally” as long-term tourists). For your company, it means a bit more bureaucracy: you’ll need to apply for permits, time the hires accordingly, and keep records tidy.
This is an area where partnering with local experts or an Employer of Record can be incredibly helpful, an EOR will handle these permit applications for you (more on that later), ensuring you don’t accidentally run afoul of the new rules.
Employer Obligations When Relocating Foreign Staff to Georgia
Relocating an employee (or hiring a foreign national) in Georgia triggers all the usual obligations of being an employer, plus some additional immigration compliance. If you’re used to hiring in your home country, be prepared to meet Georgia’s specific requirements. Here’s a rundown of what employers must do when they bring on foreign staff in Georgia:
Establish a Legal Employment Relationship
The foreign staff must be employed by a legal entity registered in Georgia. That means you either need to have a local Georgian company/entity to act as the employer, or you use a third-party Employer of Record service (like Team Up), which already has a local entity to employ the person on your behalf. You cannot directly put a foreign employee on your U.S. or EU payroll and have them working in Georgia without any local entity, which would be treated as an unregistered (and likely illegal) arrangement. If you don’t have an entity, a Georgian EOR is your only compliant option.
Georgian Employment Contract
The employee must sign a local employment contract in the Georgian language. Georgian labour law requires the contract to be in Georgian (you can do bilingual contracts, but the Georgian text will govern). This contract should outline the role, salary, benefits, and be compliant withthe Georgian Labour Code. It’s not just a formality – a proper local contract ensures both you and the employee are protected under local law. If you’re using an EOR, they will draft and sign this with the employee (with your company as a sort of secondary party defining the work scope). If you have your own entity, you’ll need local legal counsel to prepare a compliant contract.
Do not attempt to just use an English contract or a template from another country – that won’t fly in Georgia and could be deemed invalid.
Registering the Employee & Payroll Obligations
Once hired, the employee needs to be registered for tax and social purposes. Georgia has a relatively simple tax system: a flat 20% personal income tax on salaries, which the employer withholds and pays to the authorities. Additionally, there is a pension fund contribution system (effective since 2019) where typically 2% is contributed by the employer, 2% by the employee (withheld from salary), and 2% by the government.
Employers must withhold and remit these amounts each month. There’s no separate social security tax beyond the pension, but those pension contributions are mandatory (foreign employees can opt out of the pension scheme in some cases, but the default is to include them). You also need to issue payslips and maintain payroll records.
All of this means setting up a local payroll process. If you have one or two expats, you might manage this manually or through an accountant; if you have dozens, definitely consider outsourcing payroll or using an EOR.
The key obligation is: every Lari paid to that employee must be accounted for and taxed in Georgia. No off-the-record cash, no “just pay them from the US” arrangements – that would violate tax laws and, frankly, put the employee in a bad spot too. Team Up’s EOR payroll services handle all these calculations and filings for our clients, ensuring 100% compliance with tax law.
Mandatory Benefits and Labour Law Compliance
Hiring foreign staff doesn’t exempt you from local labour standards. All Georgian labour laws apply equally. For example, full-time employees are entitled to at least 24 working days of paid vacation per year (basically one month off), plus around 15–17 public holidays (which are also paid days off). They are entitled to paid sick leave (the exact compensation for sick days can be partly covered by the employer and social fund), maternity/paternity leave, and other protections. Termination of employment must follow Georgia’s rules (you generally need to give written notice and possibly a payout if it’s without cause).
Over time, night work and other conditions have regulations as well. As an employer, you must provide the minimum benefits and ensure working conditions meet the law. For instance, if your foreign employee will work remotely from Georgia, you should be mindful of any health and safety requirements for remote work (Georgia recently updated laws to address remote workers’ rights).
Failing to meet these obligations can lead to labour disputes or fines. But when done correctly, these benefits are just a normal part of the employment package – and in Georgia, they’re quite reasonable (24 days vacation is comparable to Europe; holidays are generous, yes, but that’s standard locally).
Immigration Compliance (Visas, Residence, Work Permits)
As covered in previous sections, you, the employer, must ensure the employee is in Georgia on the proper status. This means coordinating their initial visa or entry, sponsoring their work permit application in 2026 and beyond, and possibly assisting with their residence permit application. Practically, if you have a Global Mobility or HR person, they would gather needed documents (like an employment verification letter, etc.) for the employee’s residence application. If you’re using an EOR, the EOR will handle the work permit process and usually guide the residence permit process too.
A key obligation is also keeping track of permit expirations – if your employee’s residence permit is one year valid, mark your calendar to renew it on time. If the work permit needs renewal (the details on renewal intervals will likely come in regulations), stay ahead of that, too. The new law also requires employers to notify authorities if the foreign employee leaves the company or if their contract terms change. This is a new obligation – basically to prevent permit fraud (e.g., someone quits but their permit is still open, or someone switches jobs).
As an employer, build a compliance checklist: did we report John Doe’s termination to the Ministry within the required timeframe? It might be a simple email or form, but it’s mandatory under the new rules.
Local Entity and Legal Presence
If you plan to relocate multiple staff and truly establish a presence, consider that you may need to officially register a branch or subsidiary in Georgia at some point. Running everything indefinitely through an EOR is perfectly legal (and often optimal for small teams or initial hires), but larger operations might prompt you to have your own entity. With your own entity comes all the standard obligations: business registration, local accounting, monthly tax filings, etc. An EOR can shield you from that complexity in the early stages. Many companies start with an EOR to test the market and then “graduate” to setting up an entity once they have 10+ employees.
Finally, remember that compliance is an ongoing commitment. Labour laws can be updated (for instance, these new work permit rules or perhaps future changes to tax rates). It’s wise to work closely with local HR/legal experts or your EOR account manager to stay current.
Step-by-step: From Entry to Full Legal Employment
Let’s put it all together. Here’s a step-by-step breakdown of the process of relocating a foreign employee to Georgia and getting them fully legally employed:
1. Pre-Arrival – Plan the Entry Strategy
Check the employee’s citizenship against Georgia’s visa requirements. If they are from a visa-exempt country (e.g. most Western countries, Turkey, Israel, etc.), they can enter without a visa for 12 months. If they require a visa, determine if they can use the e-Visa system or if you need to apply for a D1 work visa at a Georgian consulate. Start any visa application well in advance of the move. Also, review the new work permit law timeline – if this relocation is happening after March 2026, be prepared to file a work permit application (you might even initiate that before they arrive, if possible, so that approval comes around the time they start work). Essentially, lay out a relocation timeline that includes: last day in current country, travel date, start work date, and by when you need permits/residency sorted.
2. Entry into Georgia
The employee arrives in Georgia with the appropriate entry status. At the border, they’ll receive a stamp in their passport indicating their permitted length of stay (for many, that’s 365 days). Remind them to carry any needed documents (passport valid for at least 6 months, perhaps a printout of e-visa approval if applicable, etc.).
Georgian border control is usually straightforward for visa-free entries – a few questions at most. Upon entry, the employee is legally a visitor. They can now legally be in Georgia, but not yet indefinitely and not yet with the full right to work long-term (especially post-2026 without the permit). If their family is coming along, ensure each dependent has the proper status too (family can typically get residence permits once the main applicant has theirs).
3. Initial Settling-In and Address Registration
While Georgia doesn’t have a formal nationwide “register your address within X days” requirement like some countries, it’s still a good idea for the employee to secure a local address (rental, etc.) quickly. They will need a local address for the residence permit application forms. If your company is providing housing assistance, make sure leases or contracts are done in the employee’s (or company’s) name so they have proof of address. At this stage, it’s also wise to get the employee a local SIM card and maybe have them open a Georgian bank account (not mandatory, but paying salary into a local account can be easier).
4. Sign the Employment Contract (Local)
Prepare the Georgian employment contract and have it signed by both parties (the employer entity/EOR and the employee). This contract is essential for all subsequent steps – it’s the document that proves the job for which residency and work permits will be based. Ensure it’s in Georgian (with an English translation for the employee’s understanding). It should detail the job title, salary in GEL, benefits, and be compliant with local laws (e.g., include the 24 days of annual leave, etc.). If you’re using Team Up’s EOR services, this step is handled by Team Up – we issue a locally compliant contract for the employee on behalf of your company, ready to sign electronically or in-person. The contract signing officially makes the person an employee under Georgian law.
5. Apply for the Work Permit (if required at this stage)
As of 2026, this becomes a crucial step. The employer (or EOR) submits the Work Permit application to the Georgian authorities. You will use the signed employment contract plus any other required documents (likely a copy of the employee’s passport, maybe their CV or proof of qualifications if needed for a labour market test, etc.). Submit this as early as possible because processing can take up to 30 days.
In the early months of 2026, expect possible backlogs as many companies and individuals rush to comply – another reason to start early. If your employee came in visa-free, they can remain in Georgia during the processing. If they are waiting abroad, then this work permit might be needed to get the D1 visa from the consulate. Coordinate with immigration lawyers or the Public Service Hall for any questions during the process. Once approved, the work permit is typically a certificate/approval letter.
Keep copies of this approval, as you’ll need it for the next step and for your records (and possibly to show labour inspectors, if ever asked).
6. Apply for the Residence Permit
With the work permit in hand (or in progress, depending on how the government sequences it), the employee should apply for a Work Residence Permit (sometimes called a Labour Residence Permit). This application is submitted to the Ministry of Justice (via Public Service Hall or online portal) and usually requires: the work permit approval (post-2026), the employment contract, a document from the employer confirming the employment, proof of meeting the salary and company revenue criteria, the employee’s passport and photos, and a fee payment. The standard processing time for residence permits is also around 30 days, though there are expedited options (for higher fees, they have 20-day and 10-day processing variants).
Pro tip: You can apply for residency either while the person is in Georgia on their entry status or sometimes from abroad via consular sections. It’s often easier if they’re already in Georgia. During this waiting period, the person is not an official resident yet, but since they have a legal stay (visa-free or valid visa), they can remain in the country. Once the residence permit is approved, the employee will be issued a Residence Card (an ID card) – they’ll need to pick this up in Georgia, and it’s an important ID for them (makes local life easier, travel in/out is smoother with it, etc.).
This residence permit will note the duration (e.g., 1 year, renewable, or 3 years if it was the IT permit scenario). Now the person can legally reside and work in Georgia for the duration of that permit.
7. Post-Approval – Register with Tax Authorities and Pension Fund
If this hasn’t been done already, now is the time to formally register the employee in the Georgia Revenue Service system as an employee of your entity/EOR. Practically, if you have a local entity, your accountant does this by filing a hiring notice or just by including them in the regular payroll filings (Georgia’s system is such that when you file the monthly tax return with that person’s details and pay the taxes, they become registered). If you use Team Up (EOR), we handle all the registration, from day one of employment, the individual is on our payroll system and tax filings.
Ensure the pension enrollment (the 2% contributions) is sorted out – foreign employees above a certain age or who plan to leave can choose to opt out within their first 5 months of employment, but otherwise they’ll be auto-enrolled,d and you’ll deduct 2%. Comply with any such administrative detail.
Also, if your foreign employee will be in Georgia long enough, note that after 183 days in a calendar year, they become a tax resident of Georgia, meaning their worldwide income could technically be subject to Georgian tax. This usually isn’t an issue if all their income is just their salary from you, which you’re already taxing at source. But if they have other foreign income, they might want to consult a tax advisor about any declarations (Georgia has territorial taxation for foreign income in some cases, so often it’s not taxed, but I digress – just flagging for completeness).
8. Onboarding and Commence Work
Now that the legalities are handled or in motion, the employee can officially start working in Georgia under the local contract. Treat them as you would any new hire: set up their workspace (even if remote, ensure they have the equipment needed – Georgia has electronics stores and courier services if you need to send laptops, etc.), introduce them to the team, and get them productive.
There might be some Georgia-specific onboarding housekeeping to do: for example, you may want to brief them on local holidays when the office will be closed, or if you’re providing any local perks (like a coworking membership, as Team Up often offers to remote EOR employees). Make sure they understand the cultural norms and any office expectations.
It’s also wise to have a quick orientation on compliance for them: e.g., remind them to keep their residence card on them when travelling, to notify HR if they travel out of Georgia (so you can track their 183-day tax residency if needed), and to generally abide by local laws. From here on, they should be treated as a regular employee, just one who had a few extra steps to get on board!
9. Ongoing Compliance and Renewals
Mark your calendar for key dates – the work permit expiry and the residence permit expiry. Typically, you’d start renewal procedures at least 30-60 days before those expire. If the employee’s project or assignment in Georgia is ending, plan for a smooth off-boarding that includes notifying the Ministry of Internal Affairs about the end of employment (as required under the new law) and properly terminating the contract per Georgian law. Keep all documentation on file for several years – if a labour inspector or tax auditor comes knocking, you want to have the contracts, permit copies, tax payment receipts, etc., readily available. Also, stay updated: laws can change, for instance, if Georgia adjusts the rules or if new regulations about remote work or something come in, you’ll need to adapt.
Engaging a local legal partner or EOR service makes this much easier because they will usually keep you informed of changes (Team Up certainly does for our clients).
By following these steps, you go from an initial “idea” of relocating someone to Georgia to the reality of having them fully legally working and living in Georgia. It might seem like a lot of steps, but in practice, these often overlap and flow smoothly, especially with the right assistance. Many companies find that after doing it once, the second and third international relocations to Georgia get much easier. And if all this sounds daunting, the next section will show you how an Employer of Record service simplifies most of these steps significantly.
Pitfalls, Common Mistakes, and How to Avoid Fines
Even with the best intentions, it’s easy to slip up on some of Georgia’s compliance requirements if you’re new to them. Here are some common pitfalls and mistakes companies make when relocating staff to Georgia – and tips on how to avoid them:
Assuming Visa-Free Entry = No Paperwork
Many employers think, “Great, my engineer from Germany can just enter visa-free and start working, done!” This is only half true. Yes, they can enter and even work short-term without much fuss under the old rules. But if they’re going to be a regular full-time employee, you still must get their residence permit and (from 2026) a work permit to legitimise that ongoing employment. Don’t let the convenience of entry lull you into complacency.
Avoid the trap by treating a visa-free entrant the same as one who had to get a visa: follow up with the proper permit applications as if their initial entry had an expiration (because it does – one year flies by, and the new work permit law won’t spare them just because they’re visa-free). Mark deadlines for when status expires and start residence processes early.
Missing the 2026 Work Permit Requirement
A new law like this can catch people off guard. If you don’t follow local news, you might simply not know things changed. Imagine relocating someone in April 2026 and not realising a work permit was needed – that person and your company could be working illegally from day one under the new law. Avoid this by staying informed. Keep in touch with local counsel or subscribe to updates (the Fragomen alert we cited is a good example). Since you’re reading this, you’re already ahead of many! Another tip: consider it mandatory that whenever you hire a foreigner in Georgia after March 2026, you immediately initiate a work permit application. Make it part of your HR checklist so it’s never overlooked.
Not Meeting the Residence Permit Criteria
Some companies rush to apply for a work residence permit for their employee and get a rude surprise when it’s denied because they didn’t meet the financial criteria. For example, a small startup with only 30,000 GEL in revenue trying to sponsor two foreigners – that won’t work, since they’d need 100,000 GEL turnover for 2 people. Or paying someone a super low salary that doesn’t meet the 5x minimum wage rule. The authorities do check these things (they may ask for company financial statements or have you attest to it).
Avoid this by reviewing the criteria upfront: ensure your company’s revenue is sufficient or plan to increase it, and pay a salary that’s safely above the threshold (which is quite low anyway in absolute terms). If you truly can’t meet those criteria but desperately need that foreign hire, you might need to get creative – perhaps hire them as a consultant short-term (not ideal or fully compliant for long-term) or have them enter via a different permit (investment or study, etc., which is not usually practical). In most cases, though, legitimate businesses won’t have an issue here. Just don’t forget to include this in your planning.
Misclassifying an Employee as a “Contractor”
This is a classic mistake globally, and it’s happening in Georgia, too. You might think, “We’ll avoid all this bureaucracy by just hiring the person as an independent contractor. We’ll pay them as an invoice, no payroll, easy!” Georgia’s tax authorities and labour inspectors are not naive to this. If your “contractor” is working like a full-time employee (set hours, company equipment, core role in your team), they are an employee in the eyes of the law, regardless of what you call them.
The risks of misclassification are serious: you could be liable for back taxes, penalties on those taxes, missing social contributions, and even labour lawsuits demanding benefits or severance. There’s also intellectual property risk – if the person isn’t properly employed, certain IP they create might not fully transfer to your company under local law.
Avoid this pitfall by doing things right from the start. If the person is going to operate as a true independent consultant (with multiple clients, very autonomous, short-term gig), fine. But if they’re effectively a team member, bite the bullet and hire them correctly (either through your entity or an EOR). It’s a “pay now or pay (more) later” situation – compliance isn’t optional, and hoping to fly under the radar long-term is a gamble that often ends badly. As we often say, “hoping for the best isn’t a legal strategy” in Georgia (or anywhere).
Ignoring Local Labour Norms (Work Hours, Termination Procedures)
You might come from a country where firing is easy, and people can work 60-hour workweeks if needed. In Georgia, termination usually requires a notice period or pay in lieu (unless for cause), and employees have a right to appeal unlawful termination.
Overtime isn’t explicitly time-and-a-half by law, but excessively long hours could violate general labour principles. If you cut corners – e.g., terminating a foreign employee without proper notice or reason – that person could file a complaint, and you’d be in a legal tangle.
Likewise, not giving the mandated vacation or refusing legit sick leave could land you in trouble. Avoid this by following the law and giving what’s due. It’s actually not hard to comply: provide the paid time off, honour the holidays, and if you ever need to dismiss someone, consult a Georgian HR/legal expert to do it correctly. If you use an EOR, the EOR will guide the process to ensure it’s lawful (since the EOR is the employer on record, they’ll want it done right to avoid liability).
Keep an open, honest line of communication with your foreign staff, too – ensure they know their rights and benefits, so that nothing is accidentally overlooked.
Overstaying or Gaps in Status
If your employee’s residence permit expires and you forgot to renew it, suddenly they are out of status. An overstayed foreigner can be fined on exit or even barred from re-entry for a period. This is a pitfall that comes from busy operations losing track of dates. Avoid it by using reminders (use a calendar, a spreadsheet, or have your EOR manage it).
Start renewal processes a couple of months in advance. If a permit renewal is in progress, the employee is usually allowed to stay during processing, but they shouldn’t travel outside Georgia during that time unless they have a special re-entry permit or visa – another nuance to watch (travel during renewal can void the application).
Also, if the person does exit Georgia at some point, remember that visa-free clock: for example, a Canadian who loses residency but stays on might only have whatever was left of their 365-day allowance. Don’t assume it resets without leaving the country. Ideally, keep continuous legal residency to avoid any reset confusion.
Failing to Report Changes (New 2026 rules)
As mentioned, the new law will require informing authorities about changes like early termination of a contract with a foreign worker. This is easy to overlook because it’s a new obligation that didn’t exist before.
If you fire or lay off a foreign employee and don’t tell the Ministry, you could face a fine (1,000 GEL under the law for not reporting it). Avoid this by including a simple step in your off-boarding checklist: send the notification letter to the ministry or relevant agency. It’s paperwork that could save you money and reputational harm.
Quick Tip: If all of the above feels like a lot to remember, one of the simplest ways to avoid mistakes is to partner with experts. A local immigration lawyer or an Employer of Record like Team Up stays on top of these requirements for you. They can effectively be your compliance co-founder in Georgia, as we like to say. By leaning on their guidance, you can prevent most pitfalls from ever happening. After all, navigating local laws is their day job, so you can focus on yours.
In short, the path to success is: be informed, be proactive, and don’t cut corners. Georgia is very welcoming to foreign business and talent, but like any country, it has rules to follow. If you follow them, you’ll find it’s actually a smooth process to operate here. If you ignore them, well, those 2,000 GEL fines and other penalties will certainly remind you. Better to do it right from the start.
How Employer of Record (EOR) Services Simplify Relocation and Compliance
By now, you might be thinking, “There’s a lot of bureaucratic hoop-jumping here… is there an easier way?” Yes, there is: using an Employer of Record service. If you’re not already familiar with the term, an Employer of Record is a third-party company that hires employees on your behalf in a given country, becoming the legal employer while you remain the de facto manager of the employee’s day-to-day work. EOR services are a godsend for international expansion because they handle the hard parts – payroll, taxes, legal compliance, HR admin – allowing you to focus on finding the talent and getting the work done.
Around the globe, companies are leveraging international employer of record services to expand into new markets quickly without setting up entities.
Whether it’s using an employer of record in the US to manage state-by-state compliance, tapping EOR services in India to navigate complex labour laws, or engaging a global employer of record provider for multi-country coverage, the concept is the same: you outsource the employment logistics to experts.
These providers offer employer of record payroll services (handling local pay slips, tax withholdings, and social contributions) and ensure all local laws are followed.
In essence, a quality EOR is your compliance shield and local HR department in the target country.
Team Up Serves as Your Employer Infrastructure in Georgia
Let’s drop the polite marketing tone for a second.
If you try to relocate and employ people in Georgia without local infrastructure, you’re signing up for friction. Not impossible. Just friction. Forms. Timelines. Tiny details that matter more than they should.
Team Up exists to remove that friction.
Here’s what that actually means in practice.
No Entity Setup. No Corporate Detour.
You don’t need to register a Georgian LLC.
You don’t need to open a local bank account.
You don’t need to appoint a local director.
Team Up’s local entity becomes the legal employer of record for your hires.
That single fact removes months of setup time and thousands in legal and administrative costs. If you’re testing the market or hiring 1–5 people, setting up your own entity is usually ego, not strategy. EOR is leaner. Faster. Smarter.
Work Permits and Residence. Managed End-to-End.
When a foreign employee needs a work permit under the new regime, we submit it.
When a residence permit application needs booking at the Public Service Hall, we coordinate it.
When documents need to be aligned and deadlines tracked, we handle it.
You don’t need to learn immigration sequencing. That’s our job.
We act as the liaison with Georgian authorities. We know the documentation order. We know the timelines. We know what causes delays. And we prevent those delays before they happen.
You focus on onboarding the person into your team. We focus on making sure they’re legally allowed to be there.
Fully Compliant Employment Contracts. From Day One.
Georgian law requires specific contract structures, benefits, and local compliance standards.
We provide:
Georgian-compliant employment contracts
Proper leave entitlements (24 days minimum, public holidays included)
IP and confidentiality provisions aligned with local enforceability
Required workplace policies
You don’t have to become an expert in Georgian labour law. We already are.
And when laws evolve, we update contracts and processes automatically. You won’t wake up to a regulatory change you didn’t see coming.
Payroll in GEL. Taxes Paid. No Guesswork.
Running payroll in a foreign country is where most companies quietly panic.
Team Up calculates:
Gross-to-net salary
20% income tax withholding
Pension contributions
Any other statutory deductions
We pay your employee in GEL, on time.We remit taxes to Georgian authorities.We issue compliant payslips and year-end documentation.
From your perspective? One consolidated invoice.
You fund payroll in USD, EUR, or your preferred currency. We handle local distribution and compliance.
This is what real employer of record payroll services look like. Not software. Not templates. Actual accountability.
Ongoing HR Administration. Not Just Paperwork.
Employment doesn’t stop at contracts and payroll.
If your employee needs:
Private health insurance
Bonus structuring
Equity-related payroll adjustments
Maternity leave coordination
Policy clarifications
We manage it.
Think of Team Up as HR, payroll, and compliance counsel rolled into one for your Georgian team. Quietly solving problems before they become yours.
Continuous Compliance Monitoring
Regulations change. They always do.
When Georgia introduced the 2026 work permit regime, our clients were informed before it became operational reality.
We track:
Immigration changes
Labour law updates
Tax adjustments
Enforcement trends
If there’s an inspection, we handle it. If authorities request documentation, we provide it.
We maintain the compliance infrastructure, so your record stays clean.
Faster Onboarding. Real Speed.
Speed matters.
While others are figuring out how to register with tax authorities or interpret local forms, we already have the systems in place.
We can onboard hires in days.
We can initiate relocation processes immediately.
We minimize downtime between offer acceptance and legal employment.
For scaling companies, that time advantage compounds.
Focus on Building. Not Bureaucracy.
This is the real value.
You should be thinking about product, customers, revenue, and performance.
Not:
Did we file the correct permit form?
Did we calculate the pension correctly?
Did we register the contract in time?
We contractually assume employer responsibility. That’s not a tagline. That’s liability transfer.
We are meticulous because we carry the legal weight locally.
Not All EORs Are Equal
Some global platforms operate through third-party networks with limited local depth.
Team Up operates with regional expertise and on-the-ground knowledge. We don’t sugarcoat compliance realities. We give founder-level clarity. If something is required, we say so. If there’s flexibility, we outline it precisely.
We operate as a growth partner, not a ticketing system.
Case Study: How Team Up Relocated a Remote Worker from China to Georgia
Client: Chinese technology company with a Georgian branch
Challenge: Urgent employee relocation across borders with timezone, language, and regulatory barriers
Solution: Full-spectrum relocation support from Team Up’s global EOR team
Result: Successful visa + residence permit in 10 days. Zero compliance gaps. Full transparency throughout.
The Challenge
The company needed to relocate an employee from China to Georgia on short notice. But the process was stacked with friction:
Time zone differences slowed communication
Language barriers created uncertainty
Georgia’s legal steps for D1 work visas weren’t familiar territory
They needed speed. But more importantly, they needed to get it right the first time.
The Execution
Team Up stepped in as the single point of contact for the relocation. We handled:
Full D1 Visa process for labour activity, including online registration
Document preparation & embassy coordination — bridging the time and language divide
Visa fee payment logistics with the Georgian Embassy
Embassy meeting booking and ongoing tracking
We also prepped the company and employees on what to expect — step by step. No surprises. No confusion.
The Outcome
In just 10 business days, the employee’s visa was approved.
On January 15, they arrived in Georgia.
Shortly after, the work-based residence permit was secured.
Zero compliance issues. Full legal transparency. No wasted time.
Actionable Tips for Employers Hiring Foreign Workers in Georgia
Georgia is friendly. The tax system is light. The bureaucracy is manageable.
But friendly does not mean careless.
If you treat compliance casually, you will eventually pay for it in time, money, or reputation.
Here’s your no-nonsense checklist to get it right.
1. Double-Check Entry Rules Before You Book the Flight
Georgia’s visa-free regime is generous. Many nationals can stay up to 1 year without a visa.
That does not mean they can ignore residence or future work permit rules.
Before relocating anyone:
Confirm whether their nationality is visa-free.
Verify the maximum stay period.
Check if an e-Visa or D visa is required.
Plan ahead if they will stay longer than 12 months.
Do not rely on “someone said it’s fine.” Always verify through the Georgian Ministry of Foreign Affairs or a local advisor. Rules evolve.
2. Map the Timeline Before Day One
Immigration mistakes rarely happen because people don’t care. They happen because people forget dates.
For every foreign hire, track:
Date of entry
Visa-free expiry date
Residence permit application date
Work permit application date (from 2026 onward)
Expiry dates for residence and work permits
Put them in a shared HR calendar. Set reminders 60–90 days before deadlines.
Georgia is flexible. But overstaying or missing permit filings creates unnecessary complications.
3. Don’t Try to Be a Hero. Use Experts or an EOR
Unless you have in-house Georgian legal expertise, get help.
You can:
Hire an immigration lawyer
Work with a compliance consultant
Use an Employer of Record like Team Up
An EOR becomes the legal employer, handles payroll, contracts, work permits, and residence processes.
The cost of professional support is tiny compared to fixing a compliance failure.
Trying to “figure it out” with Google and guesswork is false economy.
4. Budget Time and Money for Compliance
Relocation is not instant.
Residence permits can take weeks.Work permits (from 2026) will add additional processing time.
Plan for:
Government application fees
Legal or EOR service fees
Temporary accommodation
Relocation costs
Health insurance
Also consider productivity timing. If a role is urgent, plan for remote onboarding until legal status is finalized.
Compliance delays are predictable. Emergencies are not.
5. Keep a Clean Digital Paper Trail
Create a structured HR folder for each foreign employee.
Store:
Passport copy
Entry stamp
Residence card
Work permit certificate
Employment contract
Tax registration documents
If a bank asks for proof of residence. If immigration asks for confirmation. If labor authorities request documentation.
You respond in minutes, not days.
Organization is compliance insurance.
6. Educate the Employee and Their Manager
Compliance is not only HR’s job.
During onboarding, explain:
Their visa status
What they are legally allowed to do
How renewals work
Why certain paperwork matters
Also, brief managers.
For example:
Paid leave is mandatory under Georgian labour law.
Contract terms must align with local regulations.
“Let’s just adjust it informally” is not a strategy.
A culture of compliance prevents accidental violations.
7. Monitor Legal Changes
Georgia moves fast.
The 2026 work permit introduction changed the landscape significantly. Future changes are possible.
At minimum:
Do a quarterly compliance review
Subscribe to legal update newsletters
Stay in contact with your EOR or legal advisor
Assuming the rules won’t change is naïve. Georgia evolves.
8. If You Run Your Own Entity, Build Relationships
Georgia’s bureaucracy is not hostile. It is procedural.
Approach government offices respectfully. Ask clarifying questions when unsure. Keep communication professional and documented.
Politeness and preparation go a long way.
If you use an EOR, they manage this for you.
9. Always Have a Contingency Plan
Visa delay?
Permit rejection due to a technical issue? Unexpected policy shift?
Have a Plan B.
Maybe the employee works remotely temporarily.
Maybe you adjust start dates.
Maybe you fast-track a different residence pathway.
Contingency planning is not pessimism. It’s leadership.
10. Support Integration, Not Just Paperwork
Compliance keeps the employee legal. Integration keeps them productive.
Help with:
Housing guidance
Local banking
Healthcare navigation
Basic Georgian cultural orientation
Georgia is known for hospitality. Reflect that in your onboarding.
An employee who feels stable and welcomed is less likely to make costly compliance mistakes out of confusion.
Conclusion: Expand to Georgia with Confidence. Team Up Can Help
People overcomplicate Georgia.
Yes, there are visas.
Yes, there are residence permits.
Yes, from 2026 onward, there are work permits.
But none of this is chaos. It’s a system.
And systems are manageable when you respect them.
Georgia gives you something rare. Visa-free entry for many nationals. A pro-business environment. A tax system that founders actually like. But it also expects you to play by the rules once you start building something serious.
That’s the trade. Openness with structure. Freedom with responsibility.
If you approach expansion with a compliance-first mindset, Georgia becomes one of the smoothest markets in the region to enter. If you cut corners, it becomes unnecessarily stressful.
Let’s be honest about what this really means for decision-makers.
You now understand:
Entry pathways and why visa-free does not equal permanent status.
Residence permit requirements and the revenue and salary thresholds that matter.
The 2026 work permit reform and why ignoring it would be reckless.
Employer obligations, from Georgian-language contracts to tax compliance and paid leave.
The practical roadmap for relocation, step by step.
The common mistakes that cost companies time and credibility.
Nothing here is mysterious anymore. It’s procedural.
The country offers access to skilled talent, cost efficiency, geographic leverage between Europe and Asia, and a regulatory framework that rewards organized operators.
Compliance is not a barrier. It’s the bridge. Cross it correctly and the market opens up fully.
If you’re planning to relocate talent or build a team in Georgia, do it confidently. Do it correctly.
And if you want that process handled with precision, Team Up is ready to step in.
Frequently Asked Questions
1. What is the "Special Labour Activity Permit" introduced in 2026?
As of March 1, 2026, a local employer must obtain a Work Permit (officially the Special Labour Activity Permit) from the Ministry of Labour for any foreign employee before they can legally start work. This permit is tied to the specific employer and is the mandatory first step before an employee can apply for a residency permit.
2. Are there financial requirements for a company to hire foreigners?
Yes. To be eligible to hire foreign staff, a Georgian company must demonstrate a minimum annual turnover. In 2026, the standard requirement is 50,000 GEL (~$18,500 USD) for most companies, though educational and medical institutions have a lower threshold of 35,000 GEL.
3. What are the penalties for hiring a foreigner without a permit?
The penalties are strictly enforced in 2026. Both the employer and the employee face an initial fine of 2,000 GEL. Repeated violations within a year result in a doubled fine (4,000 GEL), and subsequent offences can lead to a triple fine and a potential ban on hiring foreign citizens.
4. Do I need to provide health insurance for my foreign employees?
While the law requires all "tourists" to have insurance as of January 1, 2026, employers are generally expected to ensure their foreign staff are covered by a policy meeting the 30,000 GEL minimum coverage requirement. Providing corporate health insurance is a standard practical step to ensure the employee’s residency permit is approved and maintained.
5. What is the new IT-specific residency permit?
For tech companies, Georgia launched a dedicated IT Residence Permit in 2026. It is valid for 3 years (longer than the standard 1-year work permit). To qualify, the employee needs two years of IT experience and a minimum annual salary of $25,000 USD.
6. Can I hire a foreigner who is already in Georgia on a "Visa-Free" stay?
Yes, but the process is time-sensitive. Once the employer obtains the Work Permit, the employee has only 10 calendar days to apply for their Labour Residence Permit at the Public Service Hall. They cannot simply continue working under their tourist status.
7. Does the 1% tax "Small Business Status" apply to my employees?
No. The 1% tax status is for "Individual Entrepreneurs" (contractors/freelancers). If you hire someone as an official employee, you must withhold the standard 20% Personal Income Tax (PIT) from their salary and contribute to the pension fund (usually 2% from the employer and 2% from the employee).
8. What is the "Digital Registry" for employers?
Employers are now required to register all foreign staff on the Unified Database of Labour Migration (labourmigration.moh.gov.ge). Failure to keep this database updated—such as not reporting a contract termination within 5 days—can result in administrative fines.
9. Are remote workers exempt from these new 2026 rules?
It depends on the "economic footprint." If a foreigner is working remotely for a Georgian company, they must have a Work Permit. If they are working for a foreign company but living in Georgia, they are generally encouraged to use the new Digital Nomad Residency track rather than an employment contract.
10. Can I use an "Employer of Record" (EOR) instead of opening a local entity?
Yes. Many international firms are using EOR services in 2026 to bypass the administrative burden of the new laws. The EOR acts as the legal employer in Georgia, handling the Work Permit, payroll, and tax compliance, while the worker performs tasks for the parent company.
