Georgia has become one of the more attractive jurisdictions for crypto investors due to its favorable tax treatment of cryptocurrency transactions. Under Georgian tax rules, the tax treatment depends on the type of crypto-related activity and whether the income is considered Georgian-source income.
- Gains from exchanging your own crypto assets are generally not subject to personal income tax.
- Crypto received as salary or payment for goods or services is taxed as ordinary income.
- Crypto mining income is Georgian-source and taxed at 20% for individuals.
- Companies pay 15% CIT only on distribution, plus 5% withholding tax on dividends.
- Buying, selling or exchanging crypto is generally outside the scope of VAT.
Is Cryptocurrency Exchange Tax-Free in Georgia?
For individuals, gains from the exchange of their own crypto assets are generally not subject to personal income tax in Georgia.
The main reason is that personal income tax applies to Georgian-source income, while the exchange of crypto assets is not considered an activity carried out in the territory of Georgia. Instead, crypto exchange is treated as an activity carried out in virtual space. Therefore, the gain received by an individual from the exchange of their own crypto assets is generally not considered Georgian-source income and is not subject to personal income tax in Georgia.
The tax treatment is therefore based on the source of the income rather than on the identity or location of the cryptocurrency issuer.
When Is Crypto Income Taxable in Georgia?
The tax treatment is different when cryptocurrency is received as payment for goods or services. If an individual receives cryptocurrency as salary, remuneration, or payment for services or goods, the income is treated as ordinary income and is subject to taxation under the general rules.
Crypto mining is also treated differently from crypto trading. Since mining activities are carried out in Georgia, including through the use of local electricity and computational resources, the resulting income is considered Georgian-source income and is subject to the standard 20% personal income tax rate for individuals.
Generally not Georgian-source income, so no personal income tax.
Taxed under the general rules, like any other salary or payment.
Georgian-source income, as mining uses local electricity and computational resources.
Crypto Investment and Exchange
When an individual buys and holds cryptocurrency as an investment and later exchanges it, the resulting gain is generally not subject to personal income tax in Georgia.
The important distinction is that the individual is exchanging their own crypto assets rather than providing services to third parties. The exchange itself is considered to take place in virtual space, and the resulting gain therefore does not qualify as Georgian-source income.
This treatment should be distinguished from activities carried out by Virtual Asset Service Providers (VASPs), which are subject to a separate regulatory framework.
Crypto Taxation for Companies in Georgia
The tax treatment of cryptocurrency is different when crypto activities are carried out by a company.
Georgia applies the Estonian-style corporate income tax model, under which company profits are generally not taxed when earned but when distributed. Therefore, income generated by a company from crypto trading or other crypto activities is not immediately subject to corporate income tax if the profit remains within the company or is reinvested.
When the company distributes its profit, 15% corporate income tax generally applies. In addition, dividends paid to shareholders are subject to 5% withholding tax.
Accordingly, a company trading cryptocurrency in Georgia is generally subject to the same corporate tax principles applicable to other business activities under the Estonian model.
How company crypto profits are taxed
No immediate corporate income tax
Corporate income tax
Withholding tax
Crypto Mining Tax in Georgia
Unlike crypto exchange, mining generates income that is considered Georgian-source because the mining activity is physically carried out in Georgia.
For individuals, crypto mining income is therefore subject to 20% personal income tax.
For companies, mining income is subject to the Estonian-style corporate income tax rules, meaning that corporate income tax generally arises upon distribution of profits at a rate of 15%, with 5% withholding tax applying to dividends paid to shareholders.
VAT Treatment of Cryptocurrency
Since VAT applies to the supply of goods and services, the purchase, sale, or exchange of crypto assets is generally not subject to VAT in Georgia. Crypto assets are treated similarly to monetary funds for these purposes, and their conversion into national or foreign currency does not create a VAT obligation.
A different regime applies to crypto mining. According to a public decision of the Minister of Finance, mining is treated as the supply of computational power for generating crypto assets. Unlike crypto exchange, mining is treated as a service and may therefore fall within the scope of VAT.
Where the mining service is provided to a non-resident of Georgia and without a permanent establishment in Georgia, the transaction is not subject to Georgian VAT. Where the recipient is resident of Georgia, VAT applies. VAT paid on goods and services used for mining activities may be credited in accordance with the general VAT rules.
Crypto is treated similarly to monetary funds.
Where the recipient has no permanent establishment in Georgia.
VAT paid on mining inputs may be credited under the general rules.
About Andersen in Georgia
At Andersen Georgia, we support individuals, investors, and businesses in understanding and complying with Georgia’s tax treatment of crypto assets. Our team provides guidance on personal and corporate income tax, crypto mining taxation, VAT treatment, and the practical application of Georgian tax rules. We also assist clients with regulatory and legal aspects related to crypto activities and structuring their activities in accordance with Georgian legislation.
For professional advice on the taxation of crypto assets in Georgia, contact us at tax@ge.andersen.com.
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Disclaimer: This article is based on Georgian legislation and publicly available information as of September 2026. It is intended for informational purposes only and does not constitute legal or tax advice. Readers should seek professional guidance tailored to their specific circumstances before making any decisions based on the information herein.