A tax rate of 1% is not retroactive. If you have been working as a freelancer for 183 days in Georgia and receive income, then without registering as an individual entrepreneur, your mandatory tax will be 20% instead of 1%. Before the automatic assignment of tax residency and the accrual of 20% taxes, the best and, in principle, the only correct option for those who move to Georgia is to open a small business. If you have no plans to live in Georgia and you are not threatened with tax residency – with the help of this form of doing business, you can significantly save on taxes in your country of residence by taking advantage of the double taxation avoidance agreement.
The Georgian government is interested in attracting foreign investment, therefore taxes for foreigners are as low as for citizens of the country, and the registration process is simplified as much as possible.