U.S. Taxes for Americans Living in Georgia (the Country): The 2026 Guide

This guide covers the Republic of Georgia in the South Caucasus, not the US state.

Key takeaways

• US citizens and green card holders generally keep filing US returns while living in Georgia, because the US taxes on citizenship and lawful permanent residence, not on where you live.
• Georgia generally treats you as a tax resident after 183 days in any continuous 12-month period, and resident individuals are generally exempt on income that does not have a Georgian source.
• The IRS lists Georgia as covered by the 1973 US–USSR tax convention, but Georgia's Ministry of Finance does not list the United States among its treaties in force, and the old convention offers US citizens very little in any case.
• There is no US–Georgia social security (totalization) agreement, so self-employed Americans generally owe US self-employment tax no matter what they pay into Georgia's funded pension scheme.
• Georgian banks report US account holders to the IRS under a FATCA agreement in force since 2015, so FBAR and Form 8938 compliance matters.

Do Americans living in Georgia still file US taxes?

Yes, generally. The IRS states that US citizens and resident aliens are taxed on worldwide income wherever they live and face the same filing requirements as people living in the United States (IRS Publication 54, revised December 2025). A green card holder remains a US tax resident under the green card test until that status ends formally.

Filing thresholds. Whether you must file depends on gross income, filing status and age. For tax year 2025, the standard deduction is $15,750 for single filers and $31,500 for married couples filing jointly; for 2026 it is $16,100 and $32,200 (IRS news release IR-2025-103, October 9, 2025, indexed annually). Income you plan to exclude under the foreign earned income exclusion still counts toward the filing threshold (Pub. 54). If you have $400 or more of net self-employment earnings, you must file regardless of the threshold (Pub. 54).

Deadlines for the 2025 return (filed in 2026). According to Pub. 54, the regular due date is April 15. If you live and work outside the United States on that date, you get an automatic two-month extension to June 15 by attaching a statement, though interest runs from April 15. Form 4868 extends filing (not payment) to October 15, and taxpayers out of the country can request, by letter, a discretionary extension to December 15.

FBAR. FinCEN Form 114 is due April 15 with an automatic extension to October 15 (Pub. 54).

When does Georgia treat you as a tax resident, and what does it tax?

Tax residency is not immigration status. Georgia generally treats an individual as a tax resident once they are present for at least 183 days in any continuous 12-month period ending in the tax year. A visa, residence permit or visa-free stay does not by itself decide tax residency. Separately, secondary sources report that Georgia moved to a work-permit system for foreign workers from March 1, 2026. That is an immigration rule; it does not change the tax residency test.

A second route exists for high-net-worth individuals: secondary sources describe assets above GEL 3 million or income above GEL 200,000 in each of the prior three years, plus a Georgian link such as property worth USD 500,000, GEL 25,000 of Georgian-source income or a residence permit. The sources describe the link differently and the status is renewed annually, so confirm the criteria with the Revenue Service.

What Georgia taxes. This is the most important point to get right, and we could not retrieve the current consolidated English text of the Tax Code from the official Legislative Herald (matsne.gov.ge) for this update. The site showed a consolidation in progress following an amendment dated September 30, 2026. What follows therefore rests on professional summaries, which consistently cite Articles 79, 82 and 104 of the Tax Code:

• Article 79 is reported to make resident individuals, and non-residents with Georgian-source income, income taxpayers. A provision that defines who is a taxpayer does not, on its own, establish the tax base.
• Article 82 is reported to exempt a resident individual's income that is not from a Georgian source (subparagraph "u" is cited).
• Andersen Georgia describes the result as worldwide taxation in form, with foreign-source income exempt, so that in practice only Georgian-source income is taxed. Others simply call it territorial.

The source question is where disputes arise. Article 104 is reported to define Georgian-source income. Several Georgian law firms state that employment duties performed while physically in Georgia generally produce Georgian-source income even if the employer is abroad, and that the Revenue Service applies a physical-presence approach. Other advisers suggest that invoices to foreign clients remain foreign-source. These positions conflict. An American who works remotely from Tbilisi for a US employer should not assume their salary is exempt in Georgia.

Rates (2026, Georgian law; confirm current figures).

• Personal income tax is a flat 20%.
• Individual entrepreneurs with small business status generally pay 1% of turnover up to GEL 500,000, and 3% above it. Micro business status for turnover under GEL 30,000 with no employees is exempt.
• Dividends paid by a Georgian company to an individual are reported to be taxed at 5% at source.

Local filing. A Georgian tax resident is reported to be required to file an annual return by April 1 of the following year declaring all income, including exempt income. Small business status holders file monthly declarations.

Recent administrative guidance. Ministry of Finance Order N38, published February 6, 2026, amended the instruction on special tax regimes (Order N999). Small business status now takes effect from the date of application, a late application after the 15-day window means income earlier in the year is taxed under the general 20% regime, and a cancelled status cannot be reapplied for until the next tax year. A Tax Code amendment of November 12, 2025 (Law No. 1061-IVMS-XIMP) took effect January 1, 2026. Georgia's tax year is the calendar year, the same as the US year, so the two systems line up for credit purposes.

Is there a US–Georgia tax treaty?

The honest answer is that the two governments do not appear to agree.

The US position. The IRS treaty page for Georgia states that Georgia is one of the former Soviet republics covered by the convention originally signed with the USSR, and links the 1973 text (IRS, page updated August 9, 2026). The convention entered into force on January 29, 1976, effective January 1, 1976.

The Georgian position. The Ministry of Finance of Georgia lists 58 double tax treaties in force. The United States is not among them (mof.ge, accessed October 11, 2026). One Georgian adviser summarizes the situation as the US honoring the old convention while Georgia does not. We found no official Georgian statement either way.

What the 1973 convention actually contains. Even where it applies, it is not a modern treaty:

• Saving clause. Article VII states that the convention does not restrict either country's right to tax its own citizens. For a US citizen, that removes most benefits.
• No tie-breaker. There is no residence tie-breaker. A dual resident cannot use the treaty to settle residency.
• No pensions or dividends articles, and no double tax relief article. Relief from double taxation must come from domestic law.
• What is there. Article III exempts certain royalties, technical services income and trade-finance interest at source. Article VI(2) limits source-country tax on personal services to presence above 183 days. Article VI(1) has limited exemptions for teachers, researchers and students. Article X contains a non-discrimination rule.
• Taxes covered. Article I covers taxes under "All-Union legislation" on the Soviet side. How that maps onto Georgia's Tax Code has not been clarified in any source we found.

Practical result. A US citizen in Georgia should plan as if there is no treaty and rely on the unilateral foreign tax credit and exclusion below. Green card holders should get advice before claiming any treaty position, which can have immigration and expatriation consequences.

How do you avoid paying tax twice?

Because Georgia generally does not tax foreign-source income, double taxation mostly arises on Georgian-source income: salary for work done in Georgia, Georgian business income, Georgian dividends and Georgian rent. The US offers two main tools, and they work differently.

Foreign earned income exclusion (Form 2555). The maximum exclusion is $130,000 for tax year 2025 and $132,900 for 2026, indexed annually (IRS, "Figuring the foreign earned income exclusion"). You generally need a foreign tax home and must pass either the bona fide residence test or the physical presence test (Pub. 54). Two limits matter:

• The exclusion does not reduce self-employment tax. Pub. 54 says all self-employment income counts toward net earnings from self-employment, even if excluded from income tax.
• You cannot take a credit or deduction for foreign taxes on income you have excluded (Pub. 54).

Foreign tax credit (Form 1116). This credits Georgian income tax against US tax on the same income, subject to a limit calculated by category ("basket"), mainly general and passive income. Unused credits generally carry back one year and forward ten (Pub. 514).

When each tends to fit. Someone paying Georgia's 20% on a Georgian salary often finds the credit covers much or all of the US tax on it, depending on their US bracket. Someone paying little Georgian tax, such as a remote worker treated as having foreign-source income or an entrepreneur on the 1% regime, gets little from the credit, so the exclusion may fit better up to the cap. Income above the cap and unearned income cannot be excluded.

The 1% small business tax is a credit problem. Under the US regulations finalized in 2022, a tax on gross turnover generally is not a creditable income tax. A tax "in lieu of" an income tax can sometimes qualify. IRS notices in 2023 allowed taxpayers to apply the earlier rules temporarily, but we did not confirm whether that relief still applies to 2025 or 2026. Whether Georgia's 1% tax is creditable is unsettled. Do not assume it is.

Timing. Georgia's tax year matches the US calendar year, so there is no year-end mismatch. Exchange-rate conversion rules still apply to every Georgian lari (GEL) amount (Pub. 54).

Social security: will you pay both?

There is no totalization agreement. Georgia does not appear on the Social Security Administration's list of agreements in force (SSA, accessed October 11, 2026). The income tax convention above does not cover social contributions either. These are separate instruments.

What Georgia charges. Georgia has no general social security tax. It has a funded pension scheme that began on January 1, 2019. Employees and employers each generally contribute 2% of salary, and the state adds up to 2%. The self-employed contribute 4%. Participation is reported to be mandatory for employees under 40 and voluntary for the self-employed. The Law on Funded Pension covers, among others, foreign citizens with permanent residence permits and self-employed individual entrepreneurs (Legislative Herald text, partially reviewed).

What the US charges. The rule depends on your situation:

• Employee of an American employer. US Social Security and Medicare generally apply to wages abroad paid by an "American employer", such as a US corporation (Pub. 54). Without a totalization agreement, there is no certificate of coverage that would exempt you from Georgian pension contributions. You may pay into both.
• Employee of a Georgian employer. US Social Security tax generally does not apply (Pub. 54), unless the employer is a foreign affiliate of a US company that has extended coverage on Form 2032.
• Self-employed, including individual entrepreneurs. US self-employment tax generally applies if net earnings are $400 or more, even if the income is excluded under the foreign earned income exclusion (Pub. 54). No agreement exists to switch this off.

Effect on US benefits. Without an agreement, Georgian contributions do not count toward US Social Security eligibility, and US credits do not count toward Georgian benefits.

Which US forms apply to accounts and assets in Georgia?

FBAR (FinCEN Form 114). You generally must file if the combined value of your foreign financial accounts exceeded $10,000 at any time in the year. This threshold is not indexed (IRS comparison chart, updated September 19, 2026).

Form 8938. For taxpayers living outside the US, the threshold is more than $200,000 on the last day of the year or more than $300,000 at any time for single filers, and $400,000 or $600,000 for joint filers (same IRS chart). It is attached to your Form 1040. FBAR and Form 8938 are separate obligations, and many people must file both.

Georgian banks and US persons. Georgia signed a Model 1 FATCA intergovernmental agreement on July 10, 2015, in force since September 18, 2015 (US Treasury FATCA table). Georgian banks therefore identify US persons and report their accounts through the Georgian Revenue Service to the IRS. Expect to sign a W-9 when you open an account.

CRS. Georgia joined the OECD multilateral agreement for automatic exchange under the Common Reporting Standard in November 2022, with exchanges announced from September 2024. The US does not participate in the CRS. CRS matters more if you also hold another citizenship or tax residence.

Local pensions, retirement accounts and investment funds

Georgia's funded pension. How the US treats an account in the Georgian scheme is not settled in any IRS guidance we found. If the account is a foreign grantor trust for US purposes, Forms 3520 and 3520-A could apply. Rev. Proc. 2020-17 exempts certain "tax-favored foreign retirement trusts" from those forms; one condition is that contributions are limited by a percentage of earned income, or to $50,000 a year or $1 million lifetime. A 2% to 4% salary-based contribution appears to meet that condition, but every condition must be met. The scheme is described as exempt at the contribution, investment and withdrawal stages in Georgia. Form 8938 reporting, and current US tax on employer contributions and growth (there is no treaty pension article), are open questions. Professional advice is worth paying for here.

Georgian investment funds. A non-US mutual fund or ETF is generally a PFIC, taxed under punitive default rules and generally requiring Form 8621 (Pub. 54). Plain bank deposits are not PFICs.

US retirement accounts. Your 401(k) and IRA remain US accounts. Because Georgia is reported to exempt residents' foreign-source income, a US pension distribution may face only US tax; confirm Georgian sourcing first.

Running a business or company in Georgia

Individual entrepreneur (IE). An IE is a registration of the individual, not a separate company. For US purposes it is generally a sole proprietorship. Income goes on Schedule C and is subject to self-employment tax. The 1% Georgian small business regime does not change US treatment, and its creditability is doubtful, as explained above.

Limited liability company (LLC, Georgian "shps"). Georgia does not appear on the US "per se" corporation list in Treas. Reg. § 301.7701-2(b)(8)(i) (eCFR, current as of October 7, 2026). A Georgian LLC is therefore generally an "eligible entity". By default, a foreign eligible entity whose members all have limited liability is classified as a corporation. A single-member entity can elect to be disregarded, and a multi-member entity can elect partnership status, on Form 8832 (Treas. Reg. § 301.7701-3). Check classification before assuming CFC rules apply.

If it is a corporation. An LLC controlled by US shareholders is generally a controlled foreign corporation (CFC). Owners may face current US tax on certain income: Subpart F income, and what was called GILTI. GILTI is renamed and modified for tax years beginning after 2025 under the 2025 legislation. Expect Form 5471, and Form 8992 if applicable. Georgia taxes company profits mainly when they are distributed, a design Georgian sources describe as 15% corporate tax on distribution plus 5% on dividends. That can leave CFC income lightly taxed in Georgia, so the high-tax exception may not apply.

If it is disregarded. You generally report the business on Schedule C and Form 8858 (Pub. 54), and self-employment tax generally applies (Treas. Reg. § 301.7701-2(c)(2)(iv)(C)(2)).

Buying, renting and selling property

Selling your home. The US exclusion of up to $250,000 of gain ($500,000 for joint filers) on a main home under IRC § 121 is not limited to US property. Gain is measured in dollars, so currency movements change the result.

Georgian capital gains. A sale of Georgian real estate generally produces Georgian-source income. Advisers commonly describe an exemption for residential property held for a minimum period and not used in business.

Currency gain on a lari mortgage. If you borrow in GEL and the lari weakens against the dollar before you repay, you repay fewer dollars than you borrowed. The IRS generally treats that difference as taxable gain even on a personal home loan, while a currency loss on a personal transaction is generally not deductible. Track exchange rates at borrowing and at each repayment.

Rental income. Rent from Georgian property is generally Georgian-source and taxable in Georgia, possibly at a reduced residential rate. In the US it goes on Schedule E, foreign residential property generally depreciates over 30 years, and Georgian tax may be credited in the passive basket.

Employment, equity compensation and remote work for a US employer

Source follows where you work. For US purposes, pay for services performed in Georgia is foreign-source earned income, which is what makes the foreign earned income exclusion and the general-basket credit available (Pub. 54). Days worked while visiting the US are US-source and cannot be excluded.

Withholding on both sides. A US employer generally withholds US income tax unless foreign law requires withholding or you give it a Form 673 statement that you expect to qualify for the exclusion, and Social Security and Medicare generally continue (Pub. 54). Georgia may expect tax on the same salary if it treats the work as Georgian-source; a US employer with no Georgian presence may not withhold it, leaving you to declare and pay.

RSUs and options. Equity income is generally sourced by allocating it across the vesting period according to where you worked. Days in Georgia produce foreign-source income for US purposes. How Georgia taxes stock compensation granted by a US parent was not confirmed in a source for this update.

Leaving Georgia

Georgian side. We found no Georgian exit tax on individuals. If you leave Georgia permanently and withdraw your funded pension assets, that refund is reported to be taxed at 20%. Residency is a factual 183-day test, so your departure year matters. Keep evidence of the date you left, and file a final return if one is due.

US side. Moving out of Georgia changes nothing about your US filing obligation while you remain a citizen or green card holder. Giving up citizenship or a long-held green card can trigger the US expatriation tax under IRC § 877A and requires Form 8854 (Pub. 54). For 2026, the statutory exclusion amount for covered expatriates is reported as $910,000, indexed annually.

Mistakes Americans commonly make in Georgia

1. Assuming "Georgia doesn't tax foreign income" covers remote work done in Tbilisi.
2. Treating the 1% regime as a full answer. US income tax and self-employment tax still apply, and the 1% may not be creditable.
3. Relying on "the treaty", whose saving clause preserves US taxation of citizens and which Georgia does not list.
4. Forgetting self-employment tax, roughly 15.3% up to the wage base, even with the exclusion.
5. Skipping the FBAR because lari balances look small; the $10,000 threshold is aggregate and measured at the year's peak.
6. Forming a Georgian LLC without checking its US classification, then missing Form 5471 or 8858.
7. Ignoring the funded pension account in US reporting.
8. Missing Georgia's annual return, which residents may owe even when all income is exempt.

Checklist

• Before moving: decide how you will work (US employer, Georgian employer, individual entrepreneur or LLC) and model US self-employment tax and Georgian source rules for each; choose between the exclusion and the credit.
• First 90 days: track days in Georgia on a rolling 12-month basis; expect W-9 requests from banks; if registering as an individual entrepreneur, apply for small business status within the 15-day window; check whether you are enrolled in the funded pension.
• Every year: US return (April 15, June 15 automatic, October 15 with Form 4868); FBAR and Form 8938; Georgian annual return by April 1 if resident, plus monthly declarations under small business status; keep Georgian tax receipts.
• Before leaving: document your departure date; decide on the funded pension refund, reported to be taxed at 20%; get advice before any renunciation under IRC § 877A.

Frequently asked questions

Do I pay US taxes if I live in Tbilisi? Generally yes, if worldwide income exceeds the filing threshold; the exclusion or credit often reduces the tax.

Is there a tax treaty between the US and Georgia? The IRS applies the 1973 US–USSR convention; Georgia does not list it. Its saving clause means it rarely helps US citizens.

Does Georgia tax my US salary if I work remotely? Possibly. Advisers generally say work physically performed in Georgia is Georgian-source and taxed at 20%.

Does the 1% small business tax replace US tax? No. US income and self-employment tax still apply.

Do I have to report my Georgian bank account to the IRS? Generally yes, on the FBAR if accounts together exceeded $10,000, and on Form 8938 above higher thresholds.

Will I pay into US Social Security and Georgia's pension at the same time? You can, because no totalization agreement exists.

When to hire a professional

• Remote work from Georgia: a Georgian tax adviser on source rules, plus a US expat tax preparer.
• Individual entrepreneur or Georgian LLC: a US international tax CPA or enrolled agent (classification, CFC rules, Forms 5471, 8858, 8832), plus a Georgian accountant.
• Funded pension, local funds or a GEL mortgage: a US cross-border adviser familiar with foreign trust and PFIC rules.
• Green card holders with treaty or dual-residency questions: a US international tax attorney working with an immigration attorney.
• Renunciation: a US tax attorney experienced with IRC § 877A.

Sources

Source	URL	Used for	Date of page
IRS, Georgia – Tax treaty documents	https://www.irs.gov/businesses/international-businesses/georgia-tax-treaty-documents	Confirms the IRS treats Georgia as covered by the 1973 US–USSR convention	Updated Aug. 9, 2026, accessed Oct. 11, 2026
IRS, United States income tax treaties A to Z	https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z	Cross-reference for US treaty partners	Accessed Oct. 11, 2026
IRS, USSR tax treaty documents and 1973 Convention text	https://www.irs.gov/pub/irs-trty/ussr.pdf	Full text of the 1973 convention: saving clause, articles, entry into force	Accessed Oct. 11, 2026
IRS, Publication 54	https://www.irs.gov/publications/p54	Worldwide income filing rule, thresholds, deadlines, FEIE, FBAR, FICA abroad	Rev. 12/2025, accessed Oct. 11, 2026
IRS, Figuring the foreign earned income exclusion	https://www.irs.gov/node/1480	FEIE maximum exclusion amounts	Accessed Oct. 11, 2026
IRS, IR-2025-103	https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill	2025 and 2026 standard deduction amounts	Oct. 9, 2025
IRS, Comparison of Form 8938 and FBAR requirements	https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements	FBAR and Form 8938 thresholds	Updated Sep. 19, 2026
SSA, Status of Totalization Agreements	https://www.ssa.gov/international/status.html	Confirms Georgia has no US totalization agreement	Accessed Oct. 11, 2026
US Treasury, FATCA agreements table	https://home.treasury.gov/policy-issues/tax-policy/foreign-account-tax-compliance-act	Georgia's Model 1 FATCA agreement dates	Accessed Oct. 11, 2026
eCFR, 26 CFR 301.7701-2	https://www.ecfr.gov/current/title-26/part-301/section-301.7701-2	Per se corporation list; basis for default classification of a Georgian LLC	Current as of Oct. 7, 2026
Ministry of Finance of Georgia, Double Taxation Avoidance Treaties	https://www.mof.ge/en/5128	Georgia's own list of 58 treaties in force; the US is not among them	Accessed Oct. 11, 2026
Legislative Herald of Georgia, Tax Code of Georgia	https://matsne.gov.ge/en/document/view/1043717	Official Tax Code text; consolidated English version not retrievable on access date	Accessed Oct. 11, 2026
Legislative Herald of Georgia, Law on Funded Pension	https://new.matsne.gov.ge/en/document/view/4280127	Who is covered by the funded pension scheme (partially reviewed)	Accessed Oct. 11, 2026
Revera, Questions and answers on tax residency in Georgia	https://georgia.revera.legal/en/info-centr/news-and-analytical-materials/366-questions-and-answers-on-tax-residency-in-georgia/	183-day residency test, annual return filing, secondary source	Accessed Oct. 11, 2026
Revera, Tax residents of Georgia: employment with a foreign company	https://georgia.revera.legal/en/info-centr/news-and-analytical-materials/338-nalogovye-rezidenty-gruzii-rabota-v-najme-na-inostrannuyu-kompaniyu/	Physical-presence source rule for remote work, secondary source	Accessed Oct. 11, 2026
Andersen Georgia, Personal income tax for residents / Tax residency rules	https://ge.andersen.com/?p=8084	Territorial taxation summary, HNWI status criteria, secondary source	Accessed Oct. 11, 2026
PwC Worldwide Tax Summaries, Georgia	https://taxsummaries.pwc.com/Georgia/Individual/Taxes-on-personal-income	Flat 20% personal income tax rate, secondary source	Last reviewed Jul. 2025
Eurofast, February 2026 special regimes update	https://eurofast.eu/georgia-amends-special-tax-regimes-for-micro-and-small-businesses-february-2026-update/	Order N38 changes to small/micro business status, secondary source	Feb. 2026
Factcheck Georgia, pension reform	https://factcheck.ge/en/story/36795-pension-reform-an-assurance-for-a-decent-retirement-or-an-additional-tax-burden	Funded pension contribution rates, secondary source	Accessed Oct. 11, 2026
IOPS, Georgia country profile	https://www.iopsweb.org/resources/Georgia-IOPSWebsite-Country-Profile-Final.pdf	Funded pension exemption at contribution/investment/withdrawal stages, secondary source	Accessed Oct. 11, 2026
PB Services, Georgia double taxation and expats	https://pbservices.ge/blog/georgia-double-taxation-and-expats/	Summary of the US/Georgia treaty disagreement, secondary source	Accessed Oct. 11, 2026
Orbitax, Georgia joins CRS MCAA	https://orbitax.com/news/country/article/Georgia-Joins-Multilateral-Agr-51336	Georgia's CRS commitment and first-exchange date, secondary source	Accessed Oct. 11, 2026
KPMG, Flash Alert 2025-226	https://kpmg.com/xx/en/our-insights/gms-flash-alert/flash-alert-2025-226.html	2026 §877A covered-expatriate exclusion amount, secondary source	Accessed Oct. 11, 2026
KPMG, Flash Alert 2020-044	https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2020/03/fa20-044.pdf	Rev. Proc. 2020-17 foreign retirement trust conditions, secondary source	Accessed Oct. 11, 2026

A note on scope: this guide is general information, not tax or legal advice. Whether your income is Georgian-source, which exclusion or credit strategy fits you, how a Georgian LLC is classified, and how the funded pension is reported all depend on your own facts. Get advice from a US preparer experienced with Forms 1116, 2555, 5471, 8858 and 3520, and from a Georgian tax adviser, before you rely on anything in this guide.