CRS / Taxes

Georgia and the Automatic Exchange of Information under the CRS

Georgia participates in the Common Reporting Standard (CRS) and therefore in the international automatic exchange of certain financial account information between tax authorities.

This means that an account in Georgia is generally not automatically “invisible” to the account holder’s country of tax residence.

What is the Common Reporting Standard?

The CRS was developed by the OECD to improve international tax transparency. Participating financial institutions collect certain information about reportable accounts and submit it to the relevant national tax authority.

If the legal requirements for an exchange are met, the information may then be passed on to the country of tax residence of the account holder or a reportable controlling person.

When did Georgia begin participating in the CRS?

Georgia signed the multilateral agreement on the automatic exchange of financial account information in 2022. Since 1 January 2023, Georgian financial institutions have been subject to the relevant due diligence and reporting requirements.

Georgia’s first international exchange of information took place in 2024 and generally concerned reportable financial account information for 2023.

Who may be affected by the exchange of information?

Individuals, companies and—depending on their classification—the controlling persons of a company may be affected if they are tax resident in a CRS partner country and hold a reportable account with a Georgian financial institution.

Tax residence is determined, among other things, on the basis of a self-certification and documents provided by the customer. Financial institutions may request additional evidence.

What information may be reported?

Depending on the type of account and its tax classification, the information exchanged may include:

• Name and address
• Country of tax residence
• Tax identification number
• Date of birth for individuals
• Account or custody account number
• Name of the reporting financial institution
• Account balance or value at year-end
• Certain interest, dividends and other investment income
• Where applicable, proceeds from the sale of financial assets
• Information about controlling persons for certain company accounts

What does this mean for people who are tax resident in Germany?

Anyone who is tax resident in Germany and holds a reportable account in Georgia should expect that relevant financial account information may be transmitted to the German tax authorities under the CRS.

A Georgian company or bank account does not automatically change a person’s tax residence. Foreign income and existing tax filing obligations must still be properly assessed and fulfilled.

Double Taxation Agreement between Germany and Georgia

Germany and Georgia have a Double Taxation Agreement. It determines which country has the right to tax certain types of income and assets and how potential double taxation should be avoided.

However, the agreement does not automatically mean that income is taxable only in Georgia. Relevant factors include a person’s place of residence and tax residence, the type of income, the place of effective management and how the business actually operates.

Transparency, Not Tax Exemption

The CRS is not an additional tax, nor does it determine which country may tax income. Its purpose is to enable the exchange of financial account information between the relevant tax authorities.

Before setting up a company or opening a bank account in Georgia, individuals should therefore discuss the personal tax implications with a qualified tax adviser in their country of residence.

Note: This information is for general guidance only and does not replace individual legal or tax advice.