Georgia has tightened rules for foreign workers and entrepreneurs, rapidly undermining its reputation as a place where a business could be opened with almost no bureaucracy. Since March 1, foreigners without residence permits have been required to obtain work authorization through the State Employment Promotion Agency, with compliance initially expected by May 1.
Formally, the authorities say the reform is aimed at combating irregular migration. According to the government, of the country’s 3.914 million residents, about 257,000 are foreign citizens, and roughly 20,000 of them are in Georgia illegally. Prime Minister Irakli Kobakhidze said that 1,311 foreigners were expelled in 2025, while the Interior Ministry reported another 41 deportations on March 26, 2026.
At the same time, Russians make up the largest group of holders of Georgian residence permits: 32,129 people, or nearly 30% of all such permits issued. After the start of the war in Ukraine, Russian citizens opened tens of thousands of businesses in Georgia, mainly in IT and consulting. Previously, sole proprietorship status could be obtained within hours, and the tax rate for annual turnover up to 500,000 lari was just 1%.
For many expatriates, the new procedure has now become a source of anxiety. The rules impose restrictions on foreigners working in delivery, passenger transport and guiding, with an exception of a quota of 200 foreign mountain and alpine guides. Entrepreneurs interviewed by the publication described unclear requirements, time pressure, technical problems and the fact that residence permit renewals now depend on first receiving a work permit.
“There is now an understanding that we had felt far too relaxed in Georgia. The main thing is that these new rules are not used as a repressive mechanism,” one Russian interviewee told the publication.
Liberal economists and opposition politicians warn that the restrictions could create labor shortages in taxi and delivery services, push up prices and damage Georgia’s image as a country open to living and entrepreneurship. At the same time, most Russian expatriates interviewed said they were not planning to leave for now, although some new ventures may decide against entering the Georgian market.