Once you’ve hired a contractor in Georgia, the practical question is simple: how do you pay them correctly? Here’s how the process usually works and what to agree on from the start.
1. Agree the basics in your contract
- Rate and currency — USD, EUR or GEL.
- Invoicing schedule — usually monthly.
- Payment terms — for example, within 14 days of the invoice.
- Who covers bank fees for international transfers.
2. The contractor sends an invoice
As an Individual Entrepreneur, your contractor issues invoices in their own name. A good invoice includes the contractor’s registered details, your company details, the period, the amount and currency, and a clear description of the services.
Describe the actual work. If your contractor uses the 1% Small Business Status, invoices should say what they really do — for example “software development services” or “design services” — rather than generic “consulting”, which is excluded from the regime.
3. You pay by bank transfer
Most companies pay by international bank transfer to the contractor’s Georgian business account. Some contractors also use payment platforms; agree the method in writing so payments are traceable for both sides.
4. The contractor handles their filings
- Monthly turnover declaration and tax payment by the 15th of the following month.
- Annual return by 1 April.
- Under Small Business Status: 1% of turnover up to GEL 500,000 (approx. USD 190,000) a year, 3% above.
These are the contractor’s obligations, not yours. Still, a contractor who stays compliant is a contractor who stays focused — which is why HirePoint offers free accounting help to every professional we place.
Common mistakes to avoid
- Vague invoices that don’t describe the service.
- Using “consulting” for work that is really development, design or marketing.
- No written agreement on currency, fees and payment terms.
- Ignoring your own country’s rules on paying foreign contractors — check with your accountant.
Frequently asked questions
Can I pay a Georgian contractor in US dollars or euros?
Yes. Many contractors invoice foreign clients in USD or EUR and receive international bank transfers to a Georgian business account. Agree the currency in your contract.
Do I need to withhold tax when paying a Georgian contractor?
Generally, the Individual Entrepreneur is responsible for their own Georgian taxes. Check your own country’s rules on paying foreign contractors with your accountant.
When does the contractor pay their tax?
Contractors with Small Business Status file a monthly turnover declaration and pay the tax by the 15th of the following month, plus an annual return by 1 April.
This article is general information, not legal or tax advice. Rules change, and eligibility depends on individual circumstances. Amounts in US dollars are approximate (1 GEL ≈ 0.38 USD, October 2026). See our Recruitment Services Disclaimer.
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