Employer of Record (EOR) in Georgia 2025: The complete hiring guide
- Gegidze • გეგიძე | Marketing
- Apr 4
- 12 min read
Table of Contents
Introduction
Want to hire top talent without draining your budget? Look at Georgia, the country, not the U.S. state.
In 2025, Georgia is quietly becoming one of the smartest places to build remote teams. Developers, designers, finance pros, you name it.
The talent is real, the salaries are low, and the paperwork is surprisingly simple.
Here’s what most people don’t know:
Georgia has 0% tax on foreign income for qualifying remote workers
Ranked #7 globally for ease of doing business (World Bank)
You can legally hire in weeks, no local entity is needed
While others chase the usual markets, smart companies are locking in skilled teams in Tbilisi and beyond.
If you’re scaling globally, Georgia should be on your shortlist.
This guide will show you exactly how to make it happen.
What is an employer of record (EOR)?
An Employer of Record (EOR) is a third-party company that hires employees on your behalf in another country, like Georgia. You get the talent. They handle the legal stuff.
Here’s how it works:
The EOR becomes the legal employer in Georgia, but your team still works for you. They report to you. They follow your processes. You set the goals.
Meanwhile, the EOR takes care of:
Employment contracts
Payroll and taxes
Social contributions
Local labor law compliance
No need to open a Georgian entity. No need to spend months figuring out red tape. With the right EOR, you can hire in a few weeks, fully legal and fully compliant.
This setup is perfect if you want to:
Test a new market
Hire fast
Skip legal risks
EORs have become a go-to solution for startups and growing companies that want talent without borders.
Want to know why so many companies are going this route? Check out the top 5 reasons companies choose an EOR in Georgia.
Why use an EOR in Georgia?
Hiring in Georgia sounds great until you hit the paperwork. Setting up a local entity means dealing with registration, tax codes, labor laws, accounting, and a whole lot of waiting. That’s where an EOR flips the script.
With an Employer of Record, you skip the setup. The EOR already operates in Georgia. They hire your employee under their legal structure and take care of contracts, taxes, and compliance. You just manage the work.
So why use an EOR in Georgia specifically?
Speed: You can hire in weeks, not months.
Simplicity: One partner handles everything from contracts to payroll.
Cost control: No legal fees, no in-house compliance team, no surprise penalties.
Focus: You stay focused on your product, not foreign labor laws.
Flexibility: Scale your team up or down without long-term commitments.
And you still keep full control over your team’s day-to-day work. They follow your roadmap. You manage performance. The EOR just handles the legal lift behind the scenes.
This setup is especially useful if you're:
Testing the Georgian market before expanding
Hiring just one or two key roles
Unsure about local employment rules
Moving quickly and don’t have time for an entity
Georgia adds even more to the mix:
Competitive salaries (40–70% lower than Western markets)
English-speaking professionals in tech, finance, and support
No red tape around remote work
Strong digital infrastructure and a growing startup scene
For small and mid-sized companies, using an EOR in Georgia is a smarter way to grow, especially if you’re not ready for a full-blown expansion. It’s fast, safe, and lets you tap into great talent with low overhead.
What you can do through an EOR in Georgia
Say you’re hiring a software engineer in Tbilisi. You’ve got the candidate, the budget, and the role ready to go. That sounds like a plan, doesn’t it?
Until you’re staring down tax codes, labor laws, and government filings in a language you don’t speak.
That’s exactly what an EOR makes possible without opening a Georgian entity.
Here’s what you can do through an EOR like Team Up in Georgia:
Hire legally without setting up an entity We become the legal employer. You stay in control of the work. We handle employment contracts, local registrations, and government filings, so you can start hiring in weeks, not months.
Run a fully compliant payroll We pay your team in GEL, file the correct taxes, and manage all statutory contributions. Our payroll system is built for speed, accuracy, and full local compliance.
Offer a Georgia-specific benefits package To attract top talent in Georgia, salary alone isn’t enough. We help you offer competitive, fully localized perks, including:
Private health insurance
Paid time off and sick leave
Coworking space access or home office support
13th-month pay (optional)
Stipends for meals, wellness, or transport
Explore our full local benefits package
Stay compliant through the entire employee life cycle From onboarding to offboarding, we make sure every step meets Georgia’s legal requirements, with no guesswork and risks.
How much does it cost to use an EOR in Georgia?
When considering an Employer of Record (EOR) in Georgia, understanding the cost structure is crucial for budgeting and decision-making. At Team Up, we prioritize transparency, ensuring you know exactly what you're paying for without hidden fees.
Cost Components:
Employee's Gross Salary: This is the agreed-upon salary paid to the employee, typically in Georgian Lari (GEL).
Mandatory Employer Contributions: In Georgia, employers are required to contribute an additional 2% of the employee's salary to the pension fund.
EOR Service Fee: This fee covers the comprehensive services provided by the EOR, including compliance management, payroll processing, and benefits administration.
Unlike other providers, we don’t hide fees in the fine print. Our pricing reflects the scope of services, number of employees, and the benefits package you want to offer.
Example Breakdown:
Consider hiring a mid-level developer in Georgia with a gross monthly salary of €3,255 (approximately $3,500 USD):
Gross Salary: €3,255
Employer Pension Contribution (2%): €65
EOR Service Fee: €199 per person/month.
Total Monthly Cost: Gross Salary + Pension Contribution + EOR Service Fee
At Team Up, our service fee is competitive and reflects the value of comprehensive EOR services, ensuring compliance and seamless operations in Georgia.
Why Choose Team Up?
Partnering with Team Up means benefiting from our expertise in the Georgian market, transparent pricing, and commitment to compliance. We handle the complexities of local employment, allowing you to focus on your core business activities.
For a detailed consultation and to receive a customized quote tailored to your hiring needs in Georgia, please contact us directly.
Legal & compliance considerations when using an EOR in Georgia
Georgia is considered one of the easier countries to do business in, but that doesn’t mean you can wing it.
Labor laws are clear and enforced. One mistake in a contract, tax filing, or termination process can get expensive fast.
That’s why companies use an EOR: to stay compliant without having to learn Georgian employment law from scratch.
Here’s what matters most:
Contracts must follow Georgian labor law
Every employee hired through an EOR must receive a formal employment contract that meets local standards. Key requirements include:
Written in Georgian (bilingual formats accepted)
Specifies job title, scope of work, work hours, and salary in GEL
Defines contract type (open-ended or fixed-term)
Includes standard terms like probation period (commonly up to 3 months)
Lists conditions for termination, notice periods, and severance
The EOR prepares and signs these contracts as the legal employer, ensuring they align with the Georgian labor code.
Payroll and tax compliance are non-negotiable
Employer | Employee | Other |
15% Corporate tax rate | 20% Income tax rate | 18% VAT |
2% Pension contribution | 2% Pension contribution | 5% Dividends, Royalties |
Your EOR is responsible for processing payroll and making all mandatory deductions, including:
20% income tax (withheld at source)
2% employer pension contribution
2% employee pension contribution (also withheld)
Any applicable bonuses or overtime payments
Everything is reported monthly to the Revenue Service of Georgia. Late or incorrect filings can trigger penalties, this is where EORs like Team Up keep you safe.
Termination procedures are strict
Letting someone go in Georgia isn’t as simple as ending a contract. Legal terminations usually require:
A 30-day written notice
Severance pay (typically 1 month’s salary per year worked)
Justified cause under Georgian labor law
Documentation that proves due process
If an employee challenges the termination and you didn’t follow protocol, you risk court proceedings.
The EOR handles this entire process and keeps your business protected.
Immigration and work permits (for foreign hires)
Georgia is flexible with foreign remote workers. Nationals from over 95 countries can stay visa-free for up to 365 days. But if you’re hiring foreign nationals to work on-site or stay long-term, your EOR can help arrange:
Residence permits
Work visas
Registration with local authorities
More on this in our guide to work permits, visas & immigration.
What EORs Provide Beyond Employment
Hiring someone through an EOR in Georgia isn’t only signing a contract and running payroll. At least not with Team Up.
We built our service for companies that don’t just want “headcount”, they want teams that can actually ship, support, and scale.
Here’s what you get beyond legal employment:
Access to a vetted talent pool
Don’t waste time sifting through unqualified resumes. We give you a curated talent pool, local professionals already working in global roles, already remote-ready.
Developers, designers, marketers, sales, support
English-speaking, timezone-aligned, ready to start
You choose who to hire, we handle the rest
Done-for-you payroll, taxes, and local reporting
No calculators. No spreadsheets. No “hope this is compliant.”
We run local payroll every month accurate, on time, and fully compliant with Georgian law.
Salaries paid in GEL
20% income tax withheld
Social contributions filed correctly
Transparent monthly invoicing
No local accountant. No missed filings. No fines. You get one clean invoice.
A local benefits package that actually competes
Salaries matter, but benefits close the deal. We help you offer a Georgia-competitive package without needing an HR team.
Private health insurance
Paid vacation, sick leave, and parental leave
Home office stipends or coworking memberships
Optional: 13th-month salary or bonus structures
Add-ons: gym access, meal plans, wellness budgets
Equipment procurement and delivery
Your hire needs to get to work… fast.
We’ll source, configure, and deliver the equipment they need without customs delays or weird voltage issues.
Laptops, monitors, accessories
Local suppliers = no customs delays
Optional: VPNs, productivity tools, onboarding kits
Workspace options
Whether it’s a coworking desk in Batumi or a quiet spot in central Tbilisi, we hook your team up with workspace options that fit their style, remote, hybrid, or in-person.
Always-on local support
Our local team handles:
Onboarding and orientation
HR questions, time off, or policy issues
Compliance guidance, legal updates, exit support
When something comes up (and it will), we’re already there to fix it.
EOR vs payroll outsourcing in Georgia: what’s the difference?
If you’re hiring in Georgia, you’ll probably come across two options: Employer of Record (EOR) and payroll outsourcing.
On the surface, they might sound similar, but they solve very different problems.
Let’s break down the difference so you can make the right call for your team.
What is payroll outsourcing?
Payroll outsourcing means you already have a legal entity in Georgia (or a PE structure), and you're just handing off the admin - paying employees, calculating taxes, and managing deductions.
It’s a service for companies that already have boots on the ground and want to simplify payroll processing.
You still handle:
Employment contracts
Compliance with local labor laws
Legal liabilities as the employer
Benefits, terminations, and disputes
Why companies choose it:
They’ve already set up locally
They have an HR/legal team in place
They want help managing local payroll complexity
What is an employer of record (EOR)?
An EOR becomes the legal employer of your team in Georgia. They hire on your behalf, manage all compliance, and take on the legal risk. You still manage the work just not the red tape.
With an EOR like Team Up, you get:
Full employment compliance without opening an entity
Payroll, benefits, contracts, and taxes done for you
Local support, onboarding, and offboarding
One monthly invoice for all employment costs
Why companies choose it:
They want to hire in Georgia without setting up locally
They’re testing the market or scaling fast
They need to hire one or two people without the overhead
So which one do you actually need?
Scenario | You Need |
You don’t have a Georgian entity | EOR |
You want to hire fast with no legal setup | EOR |
You already have a local office | Payroll Outsourcing |
You want to delegate payments, but stay the legal employer | Payroll Outsourcing |
You want local HR support, contracts, and compliance | EOR |
If you’re just looking to pay people, payroll outsourcing is fine. But if you want to hire legally, stay fully compliant, and skip entity setup, an EOR is the smarter choice.
How to choose the right EOR in Georgia
Not all EORs are built the same and when you're trusting someone to legally employ your team, run payroll, manage benefits, and keep you compliant, the wrong partner can cost you time, money, and trust with your team.
Here’s how to choose an EOR in Georgia that actually delivers.
Make sure they’re actually local
Many EOR providers are global platforms that outsource everything to third parties. You want an EOR that operates directly in Georgia with a real presence, real legal infrastructure, and direct relationships with local vendors, banks, and co-working providers.
What to ask:
Do you have your own legal entity in Georgia?
Who actually signs the local contracts?
Who’s running payroll, your team or a subcontractor?
Look at their legal and compliance expertise
Georgia’s labor laws are simple compared to the EU, but you still need someone who understands probation periods, tax compliance, terminations, and contributions. A good EOR keeps you fully covered, especially when something goes wrong.
What to ask:
Can you walk me through a compliant offboarding?
How do you handle labor law changes or tax updates?
Will I have access to legal support if needed?
Evaluate their employee experience
Your hires aren’t contractors. They’re part of your team. The EOR you choose will shape their first impression from onboarding to payroll to how questions get answered.
What to ask:
How do you onboard new hires?
Do you offer local support in Georgian and English?
What benefits can we offer through your platform?
Check what’s included (and what’s not)
Some EORs offer a bare-bones service: legal employment and payroll, nothing more. Others, like Team Up, offer local benefits, coworking, equipment sourcing, HR support, and more. Know what you’re paying for.
What to ask:
What’s included in your monthly fee?
Are benefits, equipment, or workspace optional add-ons?
Will I have a dedicated point of contact?
Prioritize flexibility and transparency
You should be able to scale up or down, change roles, or even move out of Georgia if needed without being locked into long contracts or hidden fees.
What to ask:
How fast can we add or remove hires?
Are there cancellation or transition fees?
Is pricing fixed or based on salary?
Is EOR the right call for you?
If you’re looking to hire in Georgia quickly, legally, and without the hassle of setting up a local entity, then yes, an Employer of Record (EOR) is likely the right move.
But let’s get specific.
An EOR is the right call if:
You want to hire 1–10 employees without building a full local operation
You’re testing the Georgian market before committing long-term
You don’t have time or budget for entity registration, lawyers, and accountants
You need to stay compliant with local laws, taxes, and employment standards
You want to offer competitive benefits without building HR from scratch
You want to focus on your product or team, not foreign labor law
An EOR might not be the best fit if:
You’re planning to hire 50+ employees in Georgia in the next year
You want to operate a full physical office or presence long-term
You already have legal and HR infrastructure in-country
In those cases, opening your own entity might make more financial sense. But for lean, fast-growing teams, an EOR gives you a real shortcut to building and managing a team in Georgia with none of the regulatory drag.
Team Up’s EOR service is built for companies like yours: ambitious, remote-first, and ready to scale globally without compromise. We don’t just process payroll, we act as your local partner on the ground, supporting your team from day one with real benefits, real support, and full legal coverage.
Bottom line
If you’re serious about hiring in Georgia but not ready for a full local operation, EOR isn’t a shortcut, it’s a strategy.
Let’s talk about your hiring goals and see if EOR is the right fit.
Frequently asked questions (FAQs)
What is an Employer of Record (EOR)?
An Employer of Record is a third-party organization that legally employs workers on behalf of your company. The EOR manages employment-related tasks such as payroll, tax compliance, benefits administration, and adherence to local labor laws, allowing you to focus on your core business operations.