How to pay international contractors in Georgia [2025]

There are lots of benefits to hiring self-employed contractors in Georgia, whether it’s in Tbilisi or beyond. After all, Georgia ranks 7th in the world for ease of doing business and 1st in their region, according to a 2019 World Bank study. 

However, complying with Georgia's labor laws can be complex and requires international companies to take different steps than hiring Georgian full-time employees to avoid misclassification. 

Learn how to correctly classify independent contractors and pay them according to Georgia's local laws and Labor Code in this step-by-step guide.

Step #1: Classify your workers in Georgia

Correctly classifying employees and contractors in Georgia is crucial, as misclassification can result in legal consequences including:

• Back taxes

• Back pension contributions

• Back wages and benefits owed 

• Additional penalties

Employers in Georgia are responsible for various expenses related to their full-time employees upon onboarding, including income taxes, pension contributions, payroll deductions, notice periods, and benefits like paid leave. Unfortunately, Georgian law lacks clear rules to differentiate between employees and contractors. The table below outlines a few differences:

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Step #2: Determine the best way to pay your contractors in Georgia

The first step to paying contractors in Georgia is deciding on a payment method. With remote work becoming more common, employers have a wide range of options for paying international contractors. Here are a few options available:

Bank wires. You can easily open a local bank account in Georgia and deposit funds or send a global wire transfer to pay a contractor. Keep in mind that global wire transfers come with fees and are subject to fluctuating exchange rates.

International money orders. This traditional payment method can be slow because the employer has to buy a money order, which the contractor must physically pick up and deposit upon receipt. Money orders can also have fees and unfavorable exchange rates.

Digital wallets or payment platforms. Not all digital payment platforms are available in Georgia. For example, Venmo is only available in the US, but PayPal and Wise are supported in Georgia. Please note that exchange rates may change daily, making it difficult to predict your expenses.

Global payroll services. Contractors are typically not included in the payroll. Instead, they invoice separately for their services to many companies. However, with Rippling, you can pay contractors from Georgia and around the world in one system.

Step #3: Use global payroll software to process payments for Georgian contractors 

There are many options to pay independent contractors in Georgia, but most are time-consuming. Adopting a global payroll software like Rippling is crucial to achieving global team scalability and staying compliant. 

With Rippling, you can pay contractors across the world quickly and compliantly, in a single system. Here’s a preview of how the system works:

Step #4: Ensure your Georgian contractor has the right tax information 

Independent contractors in the Republic of Georgia must file and pay their own taxes if they are registered as a business entity.

As a sole proprietor, all they need to register at the Tbilisi Public Service Hall is:

• Passport 

• Pay state taxes (GEL 55)

• Local phone number and email address

• A designated bank account

There is also a value-added tax (VAT) in Georgia, which is 18%. Contractors may pay VAT in USD, Georgian Lari, or EUR. Only sole proprietors with annual transactions under GEL 100,000 are exempt from VAT. 

Effortlessly manage contractors around the world

Growing your global workforce has never been easier. Pay contractors with Rippling, whether they're based in Georgia or elsewhere in the world.

Frequently asked questions about running payroll for contractors in Georgia