In the past few months, the hottest topic in the Georgian entrepreneurial and labour space has undoubtedly been the new Labour Permit requirement for foreign nationals running businesses and/or working in Georgia. This system went live on March 1st, 2026, and the Government’s inadvertent overregulation of rules that were originally intended simply to extend protections to local labourers has caused mass confusion among the expat community.
Our readers are well aware of the extensive coverage we have provided on this issue since the announcement of the changes last summer, as well as the introduction of the Government Ordinance No. 70 in late February of this year. If you are not familiar with the new regulations and the problems they have created, our articles on the initial announcement, the Ordinance, and our legal analysis of the rules are a good place to start.
As our previous coverage indicated, we have been skeptical about these changes from the start, particularly regarding the Government’s intention to affect foreign entrepreneurs and self-employed individuals who are not engaged in the local labour market. It never made sense to us how discouraging foreign investment (one of the drivers that put Georgia on the global business map) could be considered a good idea.
This concern was ultimately addressed by the amendments approved by the Georgian Parliament on April 16th, 2026. With these changes, the Government essentially openly recognized that entrepreneurs with no local footprint were indeed never intended to be included in these regulations.
To our readers who have felt confused or anxious about the recent changes, and especially to those who have already gone through the process unnecessarily, we fully recognize and understand your frustration. At the very least, it is reassuring to see that, despite shortcomings and imperfect execution, the Government does listen to the business community and makes necessary adjustments within a reasonable timeframe.
With all that said, let’s dive into the notable changes introduced by the aforementioned law.
Exemptions from the Scope of Affected Persons
The section of the Law on Labour Migration was amended to include the following categories under the exempted persons list (among others):
- Persons who perform labour activity entirely remotely for a local employer, and this activity does not require their entry into the territory of Georgia.
- Persons who carry out labour activity/provision of services for the benefit of a non-resident person, and the labour activity/provision of services is connected to the non-resident person’s business activities conducted outside the territory of Georgia.
This effectively means that foreign nationals (IEs, contractors, etc.) working exclusively for non-Georgian clients will no longer require a labour permit.
Previously, under the long-discussed ‘Remote Work’ exemption, our understanding was that such individuals would not need residence permits immediately after being approved for a labour permit, which initially seemed to be the real challenge. However, following these amendments, expat entrepreneurs are now fully excluded from the labour permit requirement as well.
Exemption of Owners and Directors of Georgian Companies
One of the more confusing aspects of the labour permit system was the apparent inclusion of owners and directors of Georgian companies among the affected categories. It was always clear that including this group made little sense. Our detailed reasoning on the matter can be found in our previous articles on the topic.
The new amendments changed all of that. Namely, the term “partner” has now been removed from the definition of self-employed foreigner, thus falling entirely outside the scope of the law. Consequently, founding a Georgian LLC and holding shares will not trigger permit obligations.
As for the management, the following item has been added to the exempted persons list:
- Persons performing managerial, supervisory, or audit committee functions in Category 1, 2, and 3 enterprises under the Law of Georgia on Accounting.
In simple terms, most company directors and supervisory board members will also no longer fall within the permit requirement.
Short-term Professional Activity Exemption
In addition to the above, the law introduced an entirely new concept: “short-term professional activity.”
A foreigner conducting activity in Georgia that is tied to a specific short-term project, event, or service (and which does not constitute long-term employment in the local labour market) will be able to do so without a permit or residence permit of any kind. The specific list of qualifying activities and maximum durations will be determined by the Government in future legislative releases.
Proposed Changes to Residency Requirements
There is another law (also approved on April 16th, 2026) that has attracted our attention as well. It revised the provision governing eligibility for a work residence permit.
Under the new provision, the permit may be issued not only to those who have obtained the Right to Work, but also to individuals “conducting activity in Georgia to which the Law on Labour Migration does not apply.”
More significantly, the 50,000 GEL revenue requirement (which has served as the principal legal basis for sponsorship of the work residence permit for years) is missing from the new text. The new requirements will instead be codified in a Government Ordinance, which will be published at a later stage.
The details remain unknown for now, although it appears quite clear that the purpose of this change is to loosen the criteria for obtaining a residence permit.
Practical Steps
This much change in such a short span of time is bound to feel overwhelming for most expats operating in Georgia. That is why we believe it is important to guide our readers through the changes and offer suggestions on what to do next.
If you have already applied for your Labour Permit, we suggest that you don’t cancel your application. You’ve already gone through the process and paid the Government fee. Therefore, it makes no sense to opt out of the process at this stage.
If you are a remote worker and haven’t applied yet, you will never have to. Based on both the practical reality we’ve observed over the past three weeks, with over 100 applications filed, as well as the direction of this law, the permit requirement for you is almost certainly going away. Therefore, we would not recommend spending time and money on an application at this stage.
If you are planning to start a local operation (meaning a truly local business physically operating in the Georgian market), you technically still need a permit. For example, a newly established foreign Individual Entrepreneur (IE) selling goods or services in Georgia would remain subject to the new Labour Permit system. However, the changes introduced in the law create an interesting workaround: as mentioned above, being a founder and/or director of an LLC exempts foreign individuals. Consequently, at the cost of paying higher taxes, you may bypass the permit requirement entirely.
This is, of course, very good news for entrepreneurs who, due to the scope of their business, activity type, or other considerations, were already planning to launch their operations in an LLC format.
Finally, regardless of your work situation, secure a residence permit as soon as you can. If this recent chaos has taught us anything, it is that one should never underestimate the importance of immigration security, even in countries like Georgia, where the system is relatively relaxed and designed to promote business migration and attract foreign investment.
Whether through your business, local employment, property investment, or another qualifying route, we believe every foreign expat currently living and/or operating in Georgia would benefit greatly from obtaining residency as soon as possible.
