| Serbia | Georgia | |
|---|---|---|
| Corporate income tax | 15% on profit | 15%, but only when profit is distributed |
| Small business regime | None comparable for a d.o.o. | 1% on turnover up to GEL 500,000, for individual entrepreneurs only, not companies |
| Dividend tax for an individual owner | 20% for non-residents, lower under a treaty | 5% |
| Personal income tax on salary | 10% plus contributions | 20% flat |
| VAT and threshold | 20%, threshold 8 million dinars (about €68k) | 18%, threshold GEL 100,000 |
| Residence through own company | Temporary residence up to 3 years | Work residence: income and company turnover tests (turnover at least GEL 50,000 per foreign employee, rules changed in 2026) |
| Permanent residence | After 3 years of continuous temporary residence | Investment route ($300k): after 5 years. Work route: after 10 years |
| CRS automatic exchange | Not exchanging, no start date announced | Exchanging since 2024 |
| Distance to the EU | Borders four EU states, 1–3 hours to most capitals | About 3–5 hours to most EU capitals |
When Georgia makes more sense
If you are a freelancer working alone, Georgia's 1% regime for individual entrepreneurs is hard to beat, and the distributed-profit model is attractive when you reinvest everything. Entry is simple for many passports.
When Serbia makes more sense
- You want a path to permanent residence. Serbia gives it after three years of temporary residence. In Georgia the work route takes ten years, unless you invest $300,000.
- You run a company, not just yourself. The 1% Georgian regime does not apply to an LLC. Compared company to company, both are at 15%.
- Your residence must not depend on turnover tests. Since 2026 Georgia ties work residence to income and turnover thresholds. In Serbia the basis is your company and your real role in it.
- You want to be next to the EU. Serbia borders Hungary, Romania, Bulgaria and Croatia, with free trade agreements with the EU and EFTA.
Georgia's 2026 residence and work permit rules come from recent decrees and press reports. Check the current text with a Georgian adviser before relying on them.
Sources for the other country: PwC Worldwide Tax Summaries (reviewed August to September 2026), official government sites and law-firm summaries. Rules change, so check the current position with an adviser in that country before you decide. For Serbia we confirm everything in writing for your case. Updated 30 October 2026.