Starting from April 15, 2023 there will be changes in the rules that allow you to obtain tax residency through High Net Worth Individual (HNWI) program in Georgia.
Below we discuss in detail what is changing in April 2023, and we will share our practical experience with you.
High Net Worth Individual program rules until now
In order for any foreign citizen to obtain Georgian tax residency through the HNWI program, two criteria must be met:
- The applicant must be able to prove that he is an HNWI
- The applicant must show that he has a connection with Georgia
Proof your High Net Worth Individual status
Here we had two choices, one of which was enough to show that we are HNWI
1. Option
Wealth of 3,000,000 GEL. If you can demonstrate that you own wealth anywhere in the world, the total value of which exceeds 3 million GEL, you are considered to be a HNWI.
2. Option
If you could not demonstrate the above wealth, then it was enough to show that you had an income of at least 200,000 GEL for the last three years (each year)
Choosing either of the above would prove that you are HNWI with the local standards.
Proof your connections with Georgia
We had two options here as well (spoiler alert, nothing changes in this point. The request remains unchanged even with the new edition)
1. Option
Georgian residence permit, which can be obtained by owning real estate, owning a business, registering as an individual entrepreneur, etc.
2. Option
If we do not have a residence permit, then it is possible to show a connection to Georgia with income that we receive from a Georgian source. This income should exceed 25,000 GEL. There are several ways to display this kind of income. Among them are salary, dividend, etc.
Again, choosing either of the above would prove that you are have a connection with Georgia.
Changes after April 15, 2023
From April 15, 2023, changes are planned in the rule of granting the residency through the High Net Worth Individual program.
Proof your HNWI status after April 15, 2023
Here are the changes:
If until now it was enough to show that we have a wealth anywhere in the world, the total value of which added up to 3,000,000 GEL, with the new rules, you must proof that at least 500,000 USD of this wealth is located in Georgia.
Accordingly, what property you own in Georgia is important. It can be both immovable and movable property. Also cash, bonds, stocks etc.
The same is repeated in the case of the second option. So, in addition to showing your income for the last three years and certifying that it exceeded 200,000 GEL each year, you will have to show that you own a wealth in Georgia in the amount of 500,000 USD.
Below are all 4 possible options of documents that you might need to submit to obtain a HNWI tax residency after April 15 2023:
a) documents that confirm that your wealth exceeds 3 million GEL, including that you own wealth in Georgia equivalent to at least 500,000 USD and a residence permit of Georgia;
OR
b) documents confirming that your annual income in the last 3 tax years prior to submitting the application exceeded 200,000 GEL, as well as that you own at least 500,000 USD worth of wealth in Georgia and a residence permit of Georgia;
OR
c) documents that confirm that your wealth exceeds 3 million GEL, including that you own wealth in Georgia equivalent to at least 500,000 USD and documents that prove that you received at least 25,000 GEL of income from a source in Georgia in the last tax year before submitting the application;
OR
d) documents confirming that your annual income in the last 3 tax years prior to submitting the application exceeded 200,000 GEL, as well as that you own at least 500,000 USD worth of wealth in Georgia and documents that confirm that you received at least 25 000 GEL from a source in Georgia in the last tax year prior to the submission of the application.
What can be considered as a wealth of USD 500,000 in Georgia
- This can be real estate that you own in Georgia
- Securities issued by Georgian companies that you own
- A deposit that you can open in any Georgian bank
- Simply the cash amount in the account, which will be confirmed by the Georgian bank
- And any other immovable/movable property and intangible goods
Below a sample of the HNWI tax residency certificate.
PB Services will be happy to help you find the easiest way to meet this new requirement and get a Georgia tax residency certificate.
