JOURNAL · POST #009 · GEORGIA & STRATEGY
Georgia vs. Germany, Austria, Switzerland —
The tax comparison 2026 that changes every entrepreneurial decision
29% corporate tax in Germany. 24% in Austria. 5% in Georgia. These three numbers explain why more and more DACH entrepreneurs are looking to Tbilisi.
1. The table that changes everything
| Tax Type | 🇩🇪 Germany | 🇦🇹 Austria | 🇨🇭 Switzerland | 🇬🇪 Georgia |
|---|---|---|---|---|
| Corporate Tax | 15% + ~14% Trade Tax = ~29% | 24% | ~14–18% cantonal | 15% (only distributed) |
| IT Virtual Zone | ~29% | 24% | ~14–18% | ✅ 5% |
| Income Tax max | up to 45% | up to 55% | up to 45% | ✅ 20% (territorial) |
| Wealth Tax | 0% | 0% | 0.1–0.5% cantonal | ✅ 0% |
| Inheritance Tax | up to 50% | 0% (direct line) | up to 50% cantonal | ✅ 0% |
| Withholding Tax Dividend | 25% Capital Gains Tax | 27.5% Capital Tax | 35% Withholding Tax | ✅ 5% |
| Foreign Income | Worldwide Income | Worldwide Income | Worldwide Income | ✅ TAX-FREE |
| Small Business <€175k | ~30%+ effective | ~25%+ | ~12%+ | ✅ 1% |
| Company Formation | 4–6 weeks | 1–3 weeks | 1–3 weeks | ✅ 1–2 days |
| DTA with DACH | — | — | — | ✅ DE 2008 · AT 2006 · CH 2011 |
Sources: StMatthew.de, auswandern-info.com, tpa.ge, doppelbesteuerung.eu, US State Dept. — 2024–2026
2. IT Virtual Zone — who qualifies?
Georgia's Virtual Zone is designed for companies that provide digital services abroad: software development, SaaS, digital consulting, IT services, app development, data processing. The tax: 5% on profits from Georgian sources. Foreign revenue: effectively tax-free.
Requirements: Georgian company (LLC or JSC), application to the Ministry of Finance, proof of digital services, revenue primarily from abroad. No minimum capital. No physical office required. Formation takes 1–2 days.
For a software developer from Munich making €200,000 annual revenue, this means: instead of ~€58,000 tax burden in Germany, he pays ~€10,000 in Georgia. That's €48,000 more — every year.
3. Small business regulation — 1% up to 175,000 EUR
For freelancers, consultants and small service companies with an annual revenue up to approx. 175,000 EUR (500,000 GEL), there's the small business regulation: 1% tax on gross revenue. No corporate tax. Simplified bookkeeping. Annual tax return.
A coach from Salzburg who generates €120,000 online annually pays €1,200 tax in Georgia. In Austria, it would be over €30,000 with similar net income. This isn't optimization. This is a different universe.
4. Double taxation agreements — what this means concretely
Georgia has active double taxation agreements with all three DACH countries: Germany since 2008, Austria since 2006, Switzerland since 2011. This means: income is not double-taxed. Withholding taxes are regulated. Dividends, interest and royalties have clearly defined rates.
Anyone building a Georgian holding and distributing dividends to a German shareholder pays 5% withholding tax in Georgia — and can credit this in Germany. No trick. Applicable law. Bilaterally negotiated and ratified.
5. Investment Protection Law — 10 years legal security
This is the point that distinguishes Georgia from all other jurisdictions. The "Law of Georgia on Promotion and Guarantees of Investment Activity" guarantees: The tax and legal conditions at the time of your incorporation apply to you for 10 years. Even if Georgia changes the laws tomorrow.
→No retroactive tax increases for 10 years.
→Same rights as Georgian investors — legally guaranteed.
→Profits fully and unrestricted transferable abroad.
Property guarantee is enshrined in the Georgian constitution. This is not a tax haven. This is a rule of law that respects investors — and guarantees this by law.
6. GOTT WALD Holding LLC — in Tbilisi since 2019
What Mathias Gottwald describes here is not theory. He has been living this since 2019. GOTT WALD Holding LLC has its headquarters in Tbilisi, Georgia — Gldani District, Maseli Street N2a, Entrance N2, Office N201. Company ID: 400415421.
Banking relationships established, operational companies founded, holding structure erected, team on site. Gottwald has spoken with the Ministry of Finance, with lawyers, with tax advisors and with entrepreneurs who have taken the same path. The infrastructure works. The country works. And the people are remarkable.
Georgia is growing at over 8% per year. It has 38 free trade agreements. It's not on the FATF grey list — unlike Dubai (2022). And it has an education level that will surprise you: Oxford, Harvard, Yale, Singapore — Georgia's new generation is coming back because they believe in their country.
7. Who Georgia is suitable for — and who it's not
Georgia is suitable for IT entrepreneurs who provide digital services abroad. For holding structures with real operational business. For freelancers and consultants who work location-independently. For entrepreneurs who take international diversification seriously.
Georgia is not suitable for purely passive shell companies without substance. Not for tax evasion. Not for people who think they can "just take" a tax paradise without taking responsibility. Substance requirements are real and must be taken seriously.
If you want to know whether a Georgia structure makes sense for your specific situation — you don't need consulting. You need a conversation. 33 minutes. Free. Honest.
Is a Georgia structure sensible for you?
In 33 minutes we'll find out together. Free. No pitch.
SALZBURG · MUNICH · ZURICH · INNSBRUCK · TBILISI
Sophie Waldmann writes about international tax strategies, holding structures and entrepreneurship on behalf of GOTT WALD Holding LLC.
Sources: StMatthew.de, auswandern-info.com, tpa.ge, doppelbesteuerung.eu, US State Dept. Investment Climate, UNCTAD Investment Laws Navigator — 2024–2026