How To Exchange Cryptocurrency For Georgian Lari: If you are a legal resident of Georgia, you can exchange your crypto directly to Georgian Lari (GEL) and have it deposited by the exchange service into a bank account at any of the Georgian commercial banks, often on the same day. Cryptal has arrangements with the two largest banks (Bank of Georgia and TBC) which can make the transfer of funds almost instant in some cases.
From there, you can also send the money internationally, if you choose.
For non-residents of Georgia, you can exchange crypto and have it deposited directly to any international bank account that accepts SWIFT transfers, in USD or GEL. Your identity must be verified using your passport.
Currency exchange, in the case of non-residents, has a number of other factors to bear in mind. You should consider the following important points:
If you are not a tax resident of Georgia, the income you withdraw will almost certainly be taxable somewhere else. This could be a huge tax bill compared to the current 0% tax on gains from crypto as described above.
Even if you are a tax resident, some countries continue to enforce capital gains tax on their citizens even after they exit the tax system there, in order to prevent citizens from leaving temporarily just to avoid taxation.
Citizens of the USA potentially cannot be fully verified to use this type of service in Georgia, in some cases, unless they are legal residents of Georgia, though some options to transact only in GEL may be possible with some exchanges. Also, you may still owe tax in the USA even if they are a legal tax resident in Georgia. A few other countries also typically cannot be fully verified; check with the specific exchange service to learn if your country can be verified or not.
You may have to go through a complex process of exiting the tax system in your current country of domicile/citizenship before you can become exempt from taxes there, regardless of being a tax resident of Georgia. Australia and South Africa are good examples of this issue.
So, if you plan to exchange a large amount, not only should you acquire tax residency in order to benefit from the 0% tax rate, but you should also consider going through the legal residency process.
Becoming a legal resident will also add weight to your case by showing that you really do live in Georgia and are not just here temporarily to evade capital gains tax. For some countries, like Australia, for example, proving you live abroad is actually an essential part of exiting their tax system.
Contact our legal advisors in Georgia. and we will help you register a business in Georgia online.