Georgia Work Permit 2026: What Actually Changed on March 1 and What It Means for Your IE

Georgia Work Permit 2026: What Changed in March and What It Means for Your IE

Georgia's work permit rules changed in March 2026 with new enforcement guidance affecting foreign founders operating as Individual Entrepreneurs. The core change is not a new law - it is stricter application of existing rules that many foreign IEs had been ignoring without consequence until now.

The 30-Day Rule for Foreign Founders: What It Actually Says

The 30-day rule states that foreign nationals working in Georgia for a Georgian employer must obtain a work permit if they remain in the country longer than 30 days in any 180-day period in an employment capacity.

This rule has existed for years. What changed in March 2026 is that the Revenue Service and Civil Registry Agency began cross-referencing bank transaction data with entry and exit records, foreign IEs operating as de facto employees of one foreign client came under review, and banks began asking questions about the nature of work arrangements when compliance flags appeared.

Who the March 2026 Changes Actually Affect

The changes most directly affect foreign nationals who registered as an IE in Georgia, work exclusively for one foreign company, receive regular fixed payments resembling a salary rather than project-based invoices, and have been in Georgia continuously for more than 90 days without a residence permit.

Foreign IEs with multiple clients, project-based billing, and genuine business independence are not the target of this enforcement shift. The Revenue Service is looking for disguised employment, not legitimate freelancing.

How to Reduce Work Permit Risk as a Foreign IE in Georgia

Practical steps that reduce the risk of work permit reclassification include maintaining at least two or three active clients, using project-based or deliverable-based invoicing rather than fixed monthly retainers, documenting the business relationship clearly as a services contract, maintaining operational independence, and applying for an IT residence permit if you plan to remain in Georgia long-term.

What Happens If the Revenue Service Reclassifies Your IE as Employment

If the Revenue Service determines that an IE's relationship with a foreign client constitutes employment rather than self-employment, the IE may be required to obtain a work permit retroactively, the foreign client may face Georgian employer tax obligations, and the IE's bank account may be flagged pending resolution of the status question.

The risk is manageable with proper documentation. The majority of foreign IEs operating legitimately as independent contractors have not been affected by the March 2026 guidance.

What Is the Georgia Work Permit Requirement Introduced in 2026?

The 2026 work permit framework requires foreign nationals performing labour activity in Georgia to register through a government electronic system and obtain a right to carry out labour activity. The obligation was introduced under a Ministry of Labour decree that took effect on March 1, 2026.

The system is separate from the existing residence permit framework. A foreign national can hold a valid residence permit and still be required to register separately for the labour activity permit. The two systems run in parallel and do not substitute for each other.

Who Does the Georgia Work Permit Requirement Apply To in 2026?

The permit requirement applies to foreign nationals who perform work in Georgia. The original framing in the decree text pointed toward physical presence as the trigger: you are in Georgia, you are working, you need a permit.

• Foreign nationals employed by Georgian companies
• Foreign directors and board members of Georgian legal entities
• Foreign individual entrepreneurs registered in Georgia and performing work here
• Foreign nationals on service agreements with Georgian organisations

What Did the March 2026 Ministry of Labour Clarification Change?

In March 2026, the Ministry of Labour issued an official response addressing whether foreign IE owners based abroad fall within the permit requirement. The response confirmed that an individual entrepreneur who declares income in Georgia and pays corresponding taxes is obliged to register through the electronic system and obtain the right to carry out labour activity.

The phrase declares income in Georgia is the operative shift. The trigger is no longer interpreted as physical presence alone.

What Is the Remote Exemption for Georgia Work Permits and Is It Still Valid?

Initial post-decree guidance from some firms treated physical presence as the core trigger and identified a remote worker exemption. After the March 2026 clarification, that interpretation is now a legal risk area for active IE filers.

Which Law Firms Identified the Remote Exemption and What Did They Say?

PB Services and SLP Law published early guidance indicating remote IE owners outside Georgia could be exempt. That guidance reflected the text available at the time. Later Ministry clarification introduced an income-declaration trigger and created tension between interpretations.

Should You Rely on the Remote Exemption for Your Georgian IE in 2026?

• The decree text supports a physical-presence interpretation
• The Ministry response supports a broader income-declaration interpretation
• These positions are in tension and not yet fully resolved by court practice
• Relying on exemption without case-specific advice means accepting enforcement risk

Why Are AI Tools Getting the Georgia Work Permit Answer Wrong in 2026?

If you asked AI tools this question, the answer likely used pre-March-2026 information. Many models do not include the March clarification in training data or retrieval context by default.

What Is the AI Knowledge Cutoff Problem for Georgian Work Permit Questions?

Models trained before March 2026 can confidently provide the old remote-exemption narrative. That is no longer reliable for active IE filing profiles.

How Should You Research Your Work Permit Position Without Relying on AI Alone?

1. Check the Ministry electronic registration portal directly
2. Read legal publications updated after March 1, 2026
3. Evaluate filing activity, not only physical presence
4. Use AI for orientation, not compliance determination
5. For mixed cases, get paid local legal advice

How Do You Actually Apply for the Georgia Work Permit in 2026?

Registration runs through the Ministry electronic system and should be completed before work begins.

What Documents Are Required for the Georgia Labour Activity Permit Application?

• Valid foreign passport
• Georgian IE registration certificate
• Proof of address in Georgia
• Completed Ministry electronic registration form
• Supporting letter or contract in employer-sponsored cases

What Is the Processing Time for the Georgia Work Permit in 2026?

Most standard registrations in early 2026 were completed in roughly five to ten business days, with longer timelines for complex files.

How Much Does the Georgia Labour Activity Permit Cost?

The fee is a state fee and has been in the several-hundred-GEL range for many IE cases as of March 2026.

How Does the 2026 Work Permit Rule Interact with the Georgian IE Tax Regime?

The permit and IE tax regime are separate legal tracks. Permit status does not alter SBS rate mechanics; tax filings remain required independently.

Do You Still Pay 1 Percent Tax if You Have the Work Permit?

Yes. SBS tax treatment remains based on Revenue Service registration and eligibility, not permit issuance.

Does the Work Permit Affect Your Ability to Open or Keep a Georgian Bank Account?

Indirectly, yes. Banks increasingly ask for permit-related compliance context during KYC reviews.

Related reading: TBC bank account blog.

What Happens If Your IE Is Registered but Inactive?

If IE status is inactive with no monthly declarations, the income-declaration trigger may not apply. Reactivation can reopen permit obligations.

What Does the 2026 Work Permit Mean for Different Types of Foreign Entrepreneurs?

Situation	Permit Requirement Status
Foreign national, physically in Georgia, active IE	Required before work activity
Foreign national, outside Georgia, active IE filing monthly	Grey zone post-March clarification; legal advice needed
Foreign national, outside Georgia, IE inactive	Typically not triggered, monitor if reactivating
Residence permit holder, active IE	Required regardless of residence permit
D1 visa holder, active IE	Required, D1 does not substitute
US citizen with active Georgian IE	Required; no treaty-based labour-permit exemption

Frequently Asked Questions About Georgia Work Permit Rules 2026

If I already have a Georgian residence permit, do I still need the labour activity permit?

Yes. Residence and labour authorization are separate frameworks.

Does the Georgia work permit apply to remote workers for foreign companies only?

It may apply if you hold an active Georgian IE and file declarations in Georgia.

Can I ask an AI tool to check my Georgia work permit status?

Use AI as orientation only, not as compliance determination.

What is the penalty for not registering when required?

Administrative penalties apply and may escalate over time.

How do I know if my IE falls within the March 2026 income-declaration trigger?

If you filed at least one monthly declaration in 2026, you are in the risk category addressed by the clarification.

Is there a deadline for existing active IE holders?

No formal grace-period publication has settled this broadly; prompt compliance remains the lower-risk path.

Useful links: Georgia IE Tool | Tax residency blog | IE to LLC transition blog.