Latvia vs Georgia: Which Country for Your Company

Updated 2026 · Written by the Société Lettonie team, Riga

Latvia vs Georgia, company formation comparison

Georgia built its reputation with digital nomads thanks to its 1% turnover-based tax regime, under conditions. A striking figure. But for an entrepreneur invoicing European clients who wants to form a Latvian SIA, the question of EU market access often weighs more than the headline rate. Here's the comparison.

Outside the EU: the blind spot in the Georgian calculation

Georgia's 1% regime is aimed at small individual structures under certain revenue conditions. It's an unbeatable rate on paper. But Georgia isn't an EU member: invoicing directly under intra-community VAT, obtaining an EU VAT number, or reassuring a European client about your structure's reliability all become more complex.

Latvia, as a full EU and eurozone member, offers direct access to the European single market. For an entrepreneur whose clients are mostly in Europe, this direct access often matters more than the tax-rate gap.

The numbers-based comparison, point by point

Criteria	Latvia (SIA)	Georgia
CIT	0% reinvested / 20% distributed	15% only on distribution
Micro / turnover regime	No	1% possible (under conditions)
Minimum capital	€1 / €2,800	€0
EU / Eurozone / Schengen	Yes / Yes / Yes	No
EU market access	Direct	Indirect
Formation + annual costs	Low	Very low
International banking	Better	More complicated

Verdict

Georgia is very attractive on cost and the 1% regime, but its non-EU status makes it less practical as soon as you regularly invoice in Europe.

Advantages of Latvia and Georgia

Advantages of Latvia

Direct access to the European single market, intra-community VAT
Notably simpler international banking
Stronger credibility with EU clients and partners
Legal and tax framework governed by EU law

Advantages of Georgia

1% turnover regime for small structures
No minimum share capital required
Very low formation and running costs
Growing popularity among non-EU digital nomads

Who Latvia is the best choice for

If your clients are mostly European, if you need to invoice under intra-community VAT, or if the credibility of your structure with European partners or banks matters, Latvia directly answers needs that Georgia can't cover in the same way.

Who Georgia may suit better

Georgia makes sense for a digital nomad with an individual activity under the 1% regime threshold, mostly non-EU clients, and a clear priority on minimising costs rather than easy access to the European market.

Go further

Another non-EU option worth examining: see our comparison Latvia vs Dubai, 0% personal tax versus direct access to the European market.

Frequently asked questions

No, it mainly targets small individual structures (small-business status) under certain revenue conditions. It's not a standard company regime comparable to a Latvian SIA.

A Georgian company can't obtain an EU intra-community VAT number, which complicates direct invoicing to EU clients and can reduce trust with some European partners.

Generally yes for international use, as Georgian banking is less connected to European banking networks than Latvia's, an EU and eurozone member.

For a digital nomad with an individual activity under the 1% regime threshold, mostly non-EU clients, and a clear priority on minimising costs rather than easy access to the European market.