Does Georgia Have a Double Tax Treaty with the USA? (2026)
8 minute read | Last Updated November 2026
Written by: Lela Gochitashvili, Founder & Managing Partner
Summary
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Short answer
The answer requires distinguishing the published official sources and the country in which relief is claimed. Georgia’s Ministry of Finance does not list the United States among the 58 double tax treaties in force. The US Internal Revenue Service (IRS), however, treats the 1973 income tax convention between the United States and the USSR as still applying to Georgia. The Ministry’s list does not establish, by itself, a definitive legal conclusion about treaty succession or the convention’s application in Georgia.
The 1973 convention has a narrower scope than modern comprehensive income tax treaties. It does not cover dividends or pensions, and it does not limit the United States’ right to tax its own citizens. Most protection against double taxation therefore comes from each country’s domestic rules: Georgia generally exempts foreign-source income of resident individuals, and the United States allows a foreign tax credit or the foreign earned income exclusion.
1. Two governments, two positions
Georgia. The Ministry of Finance’s official list states that “currently 58 treaties on the avoidance of double taxation and the prevention of fiscal evasion are in force”. Neither the United States nor the USSR appears on it. Under Article 2 of the Tax Code of Georgia, an international treaty on taxation has priority over the Code when it has been ratified by the Parliament of Georgia and has entered into force. That provision and the Ministry’s list do not, on their own, resolve the separate question of succession to a Soviet-era treaty. Before claiming relief in Georgia, the applicable legal basis and the tax authority’s position should be confirmed.
United States. The IRS page on Georgia states: “Georgia is one of the former Soviet Republics which are now covered by the treaty with the Commonwealth of Independent States (CIS), formerly known as the Union of Soviet Socialist Republics (USSR).” IRS Publication 901 lists Georgia among the countries for which the US–USSR treaty “remains in effect” until a new treaty is negotiated and ratified.
The IRS’s published position supports considering the convention for US tax purposes, subject to eligibility and procedural requirements. Its treatment in Georgia requires separate confirmation. No separate modern bilateral US–Georgia income tax treaty is presented in these official sources. The IRS’s historical use of the label CIS does not mean that Georgia is currently a CIS member.
2. What the 1973 convention covers, and what it does not
The convention was signed on 20 June 1973 and entered into force on 29 January 1976, effective for income derived from 1 January 1976. Its provisions reflect the economic and legal context in which it was negotiated. Among other things:
- Royalties for the use of copyrights, patents, trademarks, know-how and equipment are taxable only in the country of residence.
- Interest is covered only where it relates to the financing of trade, not ordinary interest and not general banking business.
- Business income is taxable in the other country only if it is earned through a “representation” there.
- Personal services: income for services performed in the other country is taxable there only if the individual is present for more than 183 days in the tax year. Teachers, researchers, students and trainees have time-limited exemptions.
It does not provide dedicated dividend or pension relief or a comprehensive capital-gains regime. It does contain exemptions for certain gains, including specified intellectual-property transactions and disposals of property received by gift or inheritance; these are not a general estate or gift tax exemption. Article VII preserves each country’s right to tax its own citizens. A US citizen therefore cannot rely on the convention to eliminate US tax obligations merely by living in Georgia.
3. The Georgian side
Tax residency. An individual is a Georgian tax resident for the whole tax year if they are physically present in Georgia for 183 days or more in any continuous 12-month period ending in that year (Article 34 of the Tax Code). Special day-counting rules and exceptions apply. A separate high-net-worth resident status is also available on conditions set by the Minister of Finance.
Foreign-source income of resident individuals. Under Article 82(1), Georgian subparagraph „ფ“ of the Tax Code, income received by a resident individual that is not from a Georgian source is exempt from Georgian income tax. The key question is therefore the source of the income, not where the money is received. Work physically performed in Georgia is generally treated as Georgian-source income, even if the employer and the bank account are abroad.
Companies. A company may credit qualifying foreign profit tax on foreign-source income, subject to Article 124. For companies taxed on distributed profits, the credit is applied when paying profit tax in respect of dividends, within the Georgian tax limit.
Payments from Georgia to US persons. Where a basis for treaty relief has not been established, Georgian domestic rules are the starting point. For qualifying payments to nonresidents, typical rates include:
- dividends: 5% (Article 130);
- interest: 5%, with exemptions, for example for interest paid by licensed financial institutions (Article 131);
- royalties: 5% (Article 134);
- other Georgian-source payments falling within Article 134(1)(e): 10%.
Article 134 applies where income is not attributable to a nonresident’s registered permanent establishment in Georgia. The 10% rate does not apply automatically to every service payment; source, classification and exemptions must be checked. Salary has a separate rule.
4. The US side for Americans living in Georgia
- Worldwide income: US citizens and green card holders are taxed by the United States on their worldwide income wherever they live. Eligible taxpayers living and working abroad receive a two-month automatic extension, generally to 15 June, with an explanatory statement attached to the return. Interest on unpaid tax still runs from the regular payment deadline, generally 15 April.
- Foreign earned income exclusion: up to USD 132,900 for tax year 2026 (USD 130,000 for 2025), subject to the foreign tax home requirement, a qualifying residence or physical presence test, and a valid claim. The exclusion does not apply to every income category.
- Foreign tax credit: Georgian tax paid can generally be credited against US tax on the same income (Form 1116), within the IRS limits. Tax attributable to excluded income cannot be credited, although a credit may remain available for other qualifying income.
- Reporting: an FBAR is generally required for a US person with a financial interest in or signature authority over foreign financial accounts whose aggregate value exceeds USD 10,000 at any time in the year, subject to exceptions. Form 8938 concerns specified foreign financial assets, not just accounts. For unmarried or married-separate filers meeting the IRS living-abroad conditions, the thresholds are USD 200,000 at year end or USD 300,000 at any time (USD 400,000 and USD 600,000 for joint filers), subject to filing requirements and exceptions. Filing one report does not replace the other.
5. Typical situations
An American living in Tbilisi and working remotely for a US company. If the work is performed in Georgia, the income is generally Georgian-source and potentially taxable even while you are a nonresident: the 183-day residence test is not a tax-free period. Article 82(1), Georgian subparagraph „შ“, contains a conditional exemption for nonresidents working in Georgia for no more than 30 calendar days in the tax year for a nonresident employer, where the expense is not attributable to its Georgian permanent establishment. On the US side, FEIE or a foreign tax credit may reduce double taxation, but elimination of all tax is not guaranteed.
A US shareholder of a Georgian company. Georgia withholds 5% on dividends. US credit eligibility and any additional tax or reporting arising from ownership of a foreign company require separate US advice.
A Georgian resident receiving US dividends. For a recipient who is a nonresident for US tax purposes, the applicable US withholding rules govern; the convention supplies no reduced dividend rate. US citizens and residents require a separate US analysis. In Georgia, a resident individual’s foreign-source income is generally exempt.
6. FATCA and social security
FATCA. Georgia and the United States signed a Model 1 FATCA agreement on 10 July 2015, which the US Treasury lists as in force from 18 September 2015. Georgian reporting financial institutions identify reportable US accounts and report through the Georgian competent authority, subject to the agreement’s definitions and exceptions. FATCA is an information-reporting arrangement, not a substitute for an income tax treaty. Expect your bank to ask about US citizenship or tax residency when you open an account.
Social security. There is no social security (totalization) agreement between the United States and Georgia.
7. Common mistakes
- Assuming that “no treaty” automatically means paying tax twice. Domestic rules on both sides often prevent it.
- Assuming that the 1973 convention protects US citizens. Its saving clause preserves US taxation of citizens.
- Treating income as foreign-source because it is paid into a foreign account, even though the work is done in Georgia.
- Becoming a Georgian tax resident without planning, for example by staying 183 days or more.
- Overlooking FBAR and Form 8938 reporting for Georgian bank accounts.
Frequently asked questions
Is there a double tax treaty between Georgia and the USA?
The IRS treats the 1973 US–USSR convention as applying to Georgia. The United States is absent from Georgia’s Ministry of Finance list of 58 treaties in force. Eligibility and implementation must be assessed in the jurisdiction in which relief is claimed; the list alone does not conclusively resolve treaty succession.
Does Georgia tax a resident’s US income?
A resident individual’s income that is not from a Georgian source is generally exempt in Georgia. Income from work physically performed in Georgia is generally Georgian-source.
What is the Georgian tax on dividends paid to a US shareholder?
Generally 5%, withheld by the Georgian company.
Does Georgia report US citizens’ bank accounts?
Yes. Under the 2015 FATCA agreement, information on accounts of US persons is exchanged through the Revenue Service of Georgia.
Is there a social security agreement?
No.
How Orson can help
Orson Law Firm advises on the Georgian side: tax residency, the source of income, company structures, dividends and withholding, and documents such as Georgian tax residency certificates. For US filing questions we recommend working with a US tax adviser, and we coordinate with them where needed. We work in English, Georgian and Russian.
Book a consultation or write to info@orsonco.com.
This article is general information checked on 3 November 2026 and is not tax or legal advice for your specific situation. Tax rules change, and the outcome depends on your residence, citizenship and the type of income.
Official sources: Ministry of Finance of Georgia, double tax treaties; Tax Code of Georgia; IRS, Georgia tax treaty documents; US–USSR income tax convention (1973); IRS Publication 901; IRS, FEIE limits; IRS, overseas filing extension; IRS Publication 54; FinCEN, FBAR; IRS Form 8938 instructions; US Treasury, FATCA agreements; US Social Security Administration, international agreements.
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