Tax Comparison: Italy vs Georgia
The main tax rates compared, item by item — a starting point to get an idea, not a definitive guide for decision-making.
Comparing two tax systems is never a "rough estimate" exercise: every situation (type of income, company structure, residency) changes the final result. This table gives a general idea of the main differences, not a calculation of your specific case.
| Item | Italy | Georgia |
|---|---|---|
| Personal income tax | Progressive rates (up to 43%) | 20% flat |
| Flat-rate regime for small businesses | 15% (Italian flat-rate regime, with requirements) | 1% up to ~500,000 GEL (Small Business Status) |
| Corporate income tax | 24% (IRES) + regional IRAP | 15%, 0% on undistributed profits* |
| Standard VAT | 22% | 18% |
*The tax treatment of undistributed profits should be verified against an up-to-date official source.
Why These Numbers Alone Aren't Enough
A lower rate doesn't automatically mean "better value": you also need to factor in management costs, filing obligations in both countries, the type of income, and the Italy-Georgia double taxation treaty, which determines where a given type of income is actually taxed.
Who the Comparison Makes the Most Sense For
The gap is more pronounced for those with self-employment or small business income, where Georgia's 1% flat-rate regime offers a significant advantage over Italian rates. For more complex situations (structured companies, mixed income, significant wealth), the comparison needs to be built case by case.
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