Georgia tightens labor migration rules for foreigners: what businesses need to know

In June 2025, amendments to Georgia’s Law on Labor Migration came into effect, introducing significant changes to how foreign nationals may live and work in the country. The changes expand the scope of the law beyond traditional employment relationships and introduce new obligations for self-employed foreigners, entrepreneurs, and even company directors or shareholders.

While the stated purpose of the amendments is to better regulate labor migration, business groups and legal experts warn that the changes could create unintended challenges for Georgia’s investment climate and labor market.

Broader scope and new definitions

One of the most notable changes to the law is the introduction of the concept of a “self-employed foreigner.” This definition applies to any foreign national without permanent residence who conducts economic activity in Georgia for financial gain—whether through trade, services, partnership, independent contracting, or other entrepreneurial engagement. Self-employed foreigners are now explicitly covered by the scope of the law on labor migration.

Lawyers argue the current definition is so broad that it could extend to company directors, members of supervisory boards, or shareholders. As labor law expert Zakaria Shvelidze of EY explained during AmCham discussions: “The law now risks encompassing not only employees but also investors and corporate managers who are not typically regarded as labor migrants.”

New visa and residence permit requirements

Under the revised framework, both employees and self-employed foreigners must obtain the right to work along with either a D1 immigration visa or a residence permit. This dual requirement applies even to nationals of countries who currently enjoy visa-free entry.

The law also stipulates that a self-employed foreigner’s right to work will automatically terminate if they remain outside Georgia for more than six months. For foreign company directors or shareholders who reside abroad and visit Georgia only occasionally, this could create an increased administrative burden by necessitating regular and repeated applications for new permits.

Remote work and the IT sector

The amendments extend regulation to remote work performed abroad for Georgian employers—raising questions about how such provisions can realistically be enforced. Similar concerns apply to independent entrepreneurial activity conducted outside of traditional employment structures.

In the IT sector, a special residence permit has been introduced with stricter conditions than standard work permits. Applicants must demonstrate at least $25,000 in annual income and two years of experience in the field. It remains unclear, however, whether IT professionals are still eligible to apply for a standard work residence permit instead of the new IT-specific one.

As Kate Mamasakhlisi of Suknidze and Partners, an active AmCham CLT committee member,  noted during consultations, “Georgia has been positioning itself as a hub for digital nomads and IT talent. The risk now is that overly rigid requirements could undermine the very competitiveness that made the country attractive for tech investors in the first place.”

Labor Inspectorate’s expanded mandate

Perhaps the most far-reaching change is the expansion of the Labor Inspectorate’s mandate. Its supervisory powers now extend beyond traditional labor relations to include entrepreneurial and contractual arrangements. For example, if a Georgian citizen engages a foreigner for a paid service and the foreigner lacks a work permit, the citizen could face a fine of GEL 2,000 per case.

Such provisions have raised concerns about overregulation, administrative burdens, and potential risks to Georgia’s overall ease of doing business. As Legal Director at BGI Sophie Natroshvili points out: “This effectively means that even ordinary civil transactions, such as hiring a freelancer, could potentially expose Georgian companies or individuals to liability.”

Legal uncertainty and appeals

Another area of concern relates to the appeals process. If authorities refuse to grant a foreigner the right to work, the individual may appeal the decision—but the appeal does not suspend deportation or delay enforcement. This means foreigners could be removed from Georgia before the courts have reviewed the legality of the refusal.

Potential implications for investors

Taken together, the amendments may mark a shift away from Georgia’s traditionally flexible labor and migration framework toward a more restrictive and compliance-heavy system. While the government may view these changes as a step toward greater oversight, many in the business community fear unintended side effects.

Legal experts warn that vague definitions, overlapping obligations, and expanded sanctions could discourage foreign professionals and investors. Companies with international shareholders or board members may face additional administrative hurdles.

At the same time, lawyers stress the importance of maintaining a balanced perspective. As Zakaria Shvelidze of EY notes, “We fully recognize the government’s objective of regulating labor migration. However, the scope of the law should be carefully calibrated to avoid unnecessary burdens on entrepreneurship and investment.”

Looking ahead

The June 2025 amendments to the Law on Labor Migration represent a significant development in Georgia’s legal and business landscape. While designed to strengthen migration management, they raise complex issues for businesses, foreign professionals, and investors. In the months ahead, AmCham—working with the Investors Council and the broader business community—will continue to monitor the practical effects of this law and provide expertise. The goal is to ensure that regulation achieves its intended purpose without undermining entrepreneurship, investment, or Georgia’s competitiveness as a business destination.