Gegidze Review

Georgia Tax Advantages — Why EUR 199/Month EOR Is More Competitive Than It Appears

Georgia's tax framework creates a total employment cost structure that is dramatically below every EU and most non-EU EOR market. Understanding the full picture: employees hired through Gegidze's EOR pay 5% income tax on their salaries — not the standard 20% Georgian flat rate — because Gegidze structures the employer entity to qualify for this rate. Employer pension contribution is 2% of gross salary (state contributes another 2%; employee contributes 2%). There is no social insurance contribution equivalent to Germany's 20%, UK's 13.8%, or Estonia's 33% — Georgia simply does not have a separate social security fund. Total employer overhead above gross salary: approximately 2–5%. Compare this to: Netherlands (35–40% employer overhead), Germany (~20%), UK (13.8% NI + pension), Poland (~20%), or Romania (~23%). A Georgia employee earning EUR 3,000/month costs the employer approximately EUR 3,060–3,150/month in statutory contributions plus Gegidze's EUR 199 service fee — total approximately EUR 3,260/month. The equivalent Netherlands cost would be EUR 4,050–4,200/month for the same gross salary. For European companies building remote teams, Georgia's employer cost structure represents a 20–30% total employment cost saving over most EU markets at equivalent salary levels.

Crypto Payroll — The Unique Capability

Gegidze's crypto payroll capability is confirmed as a live service with AML/KYC compliance managed. The mechanics: the employer company (or a treasury management entity) pays Gegidze in cryptocurrency; Gegidze converts crypto to GEL (Georgian Lari) at 1.2–1.5% conversion rates; employees receive GEL-denominated salaries with 5% income tax deducted at source and filed with the Georgian Revenue Service. Georgia's regulatory environment makes this legally straightforward: Georgia does not apply additional tax on crypto-to-fiat conversions for Georgian tax residents, and the Georgian Revenue Service has published guidance on cryptocurrency taxation that Gegidze applies in AML/KYC-compliant payroll flows. The 1.2–1.5% conversion fee is far below standard crypto exchange rates (3–5%) and traditional wire transfer fees. For Web3 companies, DAOs, and crypto-native businesses that hold significant treasury in USDT/USDC/BTC and want to pay Georgian or Caucasus-based teams without converting to EUR or USD first, Gegidze's crypto payroll creates a materially more efficient treasury-to-salary pipeline than any other EOR provider in this series.

Virtual Zone Status and IE Regime — Tax Optimisation Beyond EOR

Georgia offers three distinct tax status frameworks that Gegidze applies for different client profiles beyond standard EOR. Virtual Zone (VZ) IT Company status: registered IT companies delivering services outside Georgia pay 0% corporate income tax on qualifying revenues; 0% dividend tax for foreign shareholders; the company pays Georgian employees through standard payroll but the corporate entity itself has no corporate tax burden on foreign-delivered revenues. Individual Entrepreneur (IE) regime: self-employed individuals or sole contractors operating in Georgia pay a flat 1% turnover tax (for turnovers up to GEL 500,000/year) — the lowest contractor tax rate in Europe. International Company status: designed for technology and innovation companies, providing a 5% corporate income tax rate (vs 15% standard Georgian CIT). For international companies entering Georgia, Gegidze's advisory process determines which structure — EOR (5% employee PIT), IE contractor (1% turnover), Virtual Zone company (0% CIT), or International Company (5% CIT) — maximises the after-tax return on Georgia-based operations. This integrated EOR + tax structuring advisory is unique in this audit series — no other provider offers equivalent depth of Georgia-specific tax optimisation alongside EOR employment management.