Georgia and the Common Reporting Standard (CRS)

Georgia is now a participant in the OECD’s Common Reporting Standard (CRS) and takes part in the automatic exchange of financial data with other countries – including Germany.

In brief:

CRS Accession
In 2022, Georgia signed the Multilateral Competent Authority Agreement (CRS MCAA) and thereby committed to the automatic exchange of financial information with other participating countries.

First Reports:
The first submission of financial data by Georgian financial institutions to the Georgian tax authority (Revenue Service) covered the calendar year 2023.
These data are collected by June 30, 2024, and then transmitted to the tax authorities of the respective account holders’ countries of tax residence.

Affected Individuals
The exchange applies to individuals who are tax residents in a CRS-participating country and hold an account with a Georgian financial institution.
Tax residency is determined through customer self-certification.

Information Exchanged
The exchanged data include: name, address, tax identification number (TIN), date of birth, account number, account balance, as well as interest, dividends, and proceeds from the sale of financial assets.

What this means in practice:

If you are tax resident in Germany and hold an account or a company in Georgia, the relevant financial data will now be automatically reported to the German tax authorities.
It is therefore essential to accurately declare all foreign income and assets in your German tax return.

Please note:
There is no double taxation agreement (DTA) between Germany and Georgia.
This means that income may be taxable in both countries.
To avoid double taxation, you should consult with a tax advisor.

Summary:
Since 2023, Georgia actively participates in the automatic exchange of financial information under the CRS.
As a result, financial data of individuals tax-resident in Germany who hold accounts in Georgia are automatically transmitted to the German tax authorities.