Georgia

In Georgia, cryptocurrencies are legally classified as property, not legal tender. Crucially for individuals, crypto profits are not considered Georgian-sourced income. The country maintains a regulated environment for crypto activities. Since July 1, 2023, Virtual Asset Service Providers (VASPs) are required to register with the National Bank of Georgia and adhere to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. For individual investors, however, there is no requirement for specific licensing to engage in crypto trading. The Revenue Service of Georgia (RSG), operating under the Ministry of Finance, is the primary body responsible for administering and enforcing tax laws, including those pertaining to cryptocurrencies. The current framework for cryptocurrency taxation for individuals largely stems from a Ministry of Finance bill issued on June 28, 2019. Georgia offers a highly favorable tax landscape for individual crypto investors. There is a 0% personal income tax rate on profits derived from cryptocurrencies. This extends to capital gains, where individuals are exempt from capital gains tax at a 0% rate, irrespective of how long the assets are held, there is no distinction between short-term and long-term gains. This full exemption applies without any specific thresholds. For corporate entities involved in crypto, a 15% corporate tax rate applies, but only on distributed profits, not on overall profits as they are earned. Value Added Tax (VAT) is also 0% on crypto sales and exchanges. The 0% individual tax treatment extends across various crypto activities. Income from staking is not taxable for individuals. Similarly, rewards from crypto mining are exempt from income tax for individuals, although businesses engaged in mining can deduct hardware and electricity costs. Decentralized Finance (DeFi) activities and Non-Fungible Tokens (NFTs) are also covered under the general individual crypto exemption, with NFTs specifically classified as crypto assets. Converting cryptocurrency to fiat currency or swapping one cryptocurrency for another, including stablecoins, is also not considered a taxable event for individuals.