Georgia’s legislative and regulatory landscape has continued to evolve throughout 2026, introducing important changes across taxation, immigration, real estate, tourism and other regulated sectors. Some of the reforms simplify existing procedures, while others introduce additional compliance and reporting requirements.
Below are some of the key developments businesses should be aware of.
Foreign Nationals and Short-Term Professional Activities
One of the most significant reforms concerns the rules governing foreign nationals working and carrying out professional activities in Georgia.
The updated framework expressly covers self-employed foreigners, independent contractors and individuals performing activities for financial gain. At the same time, several exemptions from standard work authorisation have been introduced.
Of particular importance is the exemption for short-term professional activities of up to four months per calendar year. Such activities must be pre-registered, free of charge, through the relevant electronic system, together with information regarding the employer, responsible contact person and foreign professional.
The reform is particularly relevant for businesses engaging foreign professionals on a temporary basis, including healthcare, consulting, education and other professional services.
Businesses should carefully assess whether a foreign professional falls within an exemption or is required to obtain standard work authorisation.
Tax Compliance and International Transactions
The tax framework has also been updated.
New reporting requirements apply to certain international controlled transactions. Georgian companies engaging in relevant transactions with foreign related parties or residents of preferentially taxed jurisdictions must disclose such transactions where their aggregate value exceeds 500,000 GEL during the relevant reporting period. The reporting may also cover free-of-charge transactions, outstanding intercompany receivables and payables.
Companies with significant cross-border intra-group loans, management fees, royalties or service arrangements should therefore review their transfer pricing documentation and reporting procedures.
At the same time, the rules applicable to micro and small businesses have become more flexible. Individuals who fail to meet certain deadlines may retain the possibility of applying for small business status, while the mandatory document-retention period for micro businesses has been reduced from six to three years.
Real Estate and VAT
Changes have also been introduced in relation to VAT treatment of certain real estate barter transactions.
Where a transaction is concluded between independent parties at arm’s length and there is no evidence of artificial price manipulation, the actual agreed transaction price may be taken into account when determining the VAT taxable base, where that price exceeds the appraised market value of the land.
The amendment is particularly relevant to developers and landowners entering into land-for-development or mixed-consideration arrangements. Parties should ensure that contractual terms, valuations and tax treatment accurately reflect the economic substance of the transaction.
Tourism and Regulated Activities
The tourism sector has also been subject to important regulatory changes.
Tour guides, tour operators and travel agencies are now required to register in a database maintained by the Georgian National Tourism Administration and to notify the Administration of relevant changes to their registered information.
In addition, certain “risk-bearing” tourism services will require specific certification once the relevant activities are defined by government regulation. Non-compliance may result in financial penalties.
Tourism businesses, particularly those providing adventure and outdoor services, should monitor the implementing regulations and assess whether additional certification will apply to their activities.
Sector-Specific Developments
Several other sectors have also seen notable regulatory changes in 2026.
In the wine industry, the threshold for classification as a “small winery” has been reduced from 40,000 to 25,000 litres of annual capacity. A new statutory category of “natural wine” has also been introduced, while QR-code labelling for certified alcoholic beverages is scheduled to become mandatory from 1 February 2027.
In construction, the mandatory certification requirement for architects has been postponed until 20 December 2026, giving businesses additional time to prepare.
The energy sector has also seen additional documentary requirements for certain power generation projects applying for connection to the distribution network, requiring confirmation that the project has reached the feasibility or implementation stage.
What Should Businesses Do?
The regulatory changes introduced in 2026 demonstrate a continuing trend towards greater digitalisation, transparency and sector-specific compliance.
Businesses should review their operations with particular attention to:
- the status and work-authorisation requirements of foreign employees and contractors;
- international related-party transactions and transfer pricing obligations;
- VAT treatment of real estate transactions;
- registration and certification requirements in regulated sectors; and
- upcoming compliance deadlines taking effect in 2027.
Early assessment of these changes can help businesses identify potential compliance risks and adjust their internal procedures before new requirements become fully applicable.
Conclusion
The first half of 2026 has brought significant changes to Georgia’s regulatory environment. While several amendments simplify existing procedures, businesses are also facing new reporting, registration and documentary requirements.
A proactive review of applicable legislation and internal compliance procedures is therefore essential for businesses operating in Georgia, particularly those working with foreign professionals or operating in regulated sectors.
