Armenia vs Georgia: Taxation, Retirement and Social Rights for Long-Term Immigrants

Welcome to Jetoff.ai detailed comparison between Armenia and Georgia, focusing specifically on the criterion of Taxation, Retirement and Social Rights for Long-Term Immigrants. This analysis aims to provide you with clear insights.

Summary & Key Insights

Average Income Tax Rate for Armenia is 23%, for Georgia is 20%

Pros & Cons

Armenia

Pros
  • Relatively stable political climate, Rich history and culture
Cons
  • Limited job market in some sectors

Georgia

Pros
  • Growing economy, Favorable tax policies for initial years
Cons
  • Bureaucracy, Limited social safety net for immigrants.

Taxation, Retirement and Social Rights for Long-Term Immigrants

Mira:

Let's discuss taxation, retirement, and social rights for long-term immigrants in Armenia and Georgia.

Leo:

Essential information for anyone considering relocation. Knowing the tax implications is almost as important as finding the best khachapuri.

Mira:

Almost! In Armenia, residency (183 days or more) means taxation on worldwide income.

Leo:

Worldwide income? That's significant. Even online sales from an Armenian apartment are taxable?

Mira:

Generally, yes. Tax treaties may offer exceptions, but the principle is clear: income generated while residing in Armenia is taxable there.

Leo:

Understood. What about Georgia?

Mira:

Georgia offers a more favorable initial tax policy. For the first two years of residency, only income sourced from Georgia is taxed.

Leo:

Two tax-free years? That's attractive. So, income from a cryptocurrency farm in Tbilisi wouldn't be taxed initially?

Mira:

You'd still need to report it, but taxation is deferred for two years on foreign-sourced income, as part of their High Net Worth Individual program.

Leo:

After those two years?

Mira:

Worldwide income becomes taxable, similar to Armenia.

Leo:

Let's discuss retirement. Armenia's pension system?

Mira:

Primarily for citizens and long-term residents who've contributed. Retiring in Armenia without prior contributions won't provide an Armenian pension.

Leo:

So, reliance on foreign pensions or savings is necessary. Georgia's approach?

Mira:

Georgia is becoming a retirement haven. A demonstrable income sufficient for living expenses is the key requirement, regardless of contributions to a Georgian pension fund.

Leo:

Verifiable income, such as pensions or investments. And Georgia's cost of living is relatively low.

Mira:

Precisely. Regarding social rights, Armenia's access to benefits is generally linked to employment and social security contributions.

Leo:

Limited access for non-working residents.

Mira:

Correct. In Georgia, the social safety net is expanding, though access to benefits for long-term immigrants might not be automatic. Healthcare access is improving.

Leo:

Private health insurance is advisable in both countries.

Leo:

To summarize: Armenia taxes worldwide income, social rights are employment-linked. Georgia offers a two-year tax break, is retiree-friendly, and is expanding social rights.

Mira:

Precisely. Individual circumstances and income sources heavily influence the optimal choice.

Leo:

Thanks for clarifying the tax and social rights landscape.

Mira:

My pleasure. For more detailed information, consult jetoff.ai.

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