A new residence permit category for IT sector employees is being added to the existing list of residence permits in Georgia’s Law on Legal Status of Foreigners and Stateless Persons.

The new amendments were presented to Parliament’s Bureau yesterday. The ruling Georgian Dream party is requesting expedited consideration of the changes.

According to the draft law, residence permits will be granted to foreign workers employed in the information technology sector who are registered with the Ministry of Health, as well as their family members. Additionally, the permits will extend to foreign individuals registered in Georgia as small business entrepreneurs engaged in IT activities, as specified by government decree, along with their family members. The legislation also covers individuals authorised to manage and represent international IT companies operating within Georgia, including their family members.

The draft law specifies that persons authorised to manage and represent international IT companies must present documents to the agency confirming their authority, as well as documentation proving at least two years of work or economic activity experience in the IT sector. They must also provide certification that their annual compensation from IT work or economic activities is not less than the equivalent of USD 25,000 in Georgian lari.

In addition to the above provisions, the existing law will be amended to specify that temporary residence permits in Georgia will initially be issued for a period of three years. Subsequently, the temporary residence permit validity can be extended for three-year periods each time, up to a maximum of 12 years.

The amendments also provide for the termination of residence permit validity. Specifically, the project stipulates that IT sector employee residence permits will be terminated if the permit holder is not physically present in Georgia for 183 days or more during any continuous 12-month calendar period. The amendments clarify that physical presence in Georgian territory includes time spent in Georgia as well as time spent outside Georgia’s borders, specifically for medical treatment.

The initiators explain the financial impact these changes will have on the country:

“If the proposed draft law is adopted, international status companies are projected to contribute approximately GEL 490 million in income tax over the next three years, representing a 3.6-fold increase compared to the total income tax forecast under current regulations. For foreigners registered as small entrepreneurs in the information technology sector, the estimated cumulative income tax over three years under current regulations is approximately GEL 119.9 million.

However, as a result of adopting this draft law, the income tax volume is expected to increase by 33% and equal GEL 159.6 million. Following legislative changes, the number of employees in international IT companies is expected to reach 24,000. Simultaneously, the projected total expenditure by these employees within Georgia over the next five years is anticipated to amount to approximately GEL 6.5 billion.

Additionally, these legislative changes are expected to raise the number of participants to 100,000 over the next five years, resulting in a corresponding increase in their expenditure within Georgia, projected to reach approximately GEL 24 billion.

Accordingly, as outlined above, this will lead to an increase in the revenue component of the budget,” the explanatory note states.

The implementation of the law is scheduled to commence on September 1, 2025.