Georgia Outsourcing

Outsource to Georgia: Hiring Software Engineers in Georgia

Grow your technology team with confidence by tapping into Georgia's thriving talent pool through Hyperion360. Our Global Staffing & Team Extension Services guarantee seamless, efficient, and cost-effective international expansion and outsourcing.

Already found qualified software engineers or other talent to work with in Georgia? Hyperion360 can be your Employer of Record (EOR) in Georgia. Hyperion360 helps you pay your team members anywhere in the world. If we don't have a local entity in a particular country we have a vast network of payroll partners who can help allowing you to hire top talent almost anywhere in the world. Need help finding software engineers in Georgia? Contact us.

The Hyperion360 Talent Score for Georgia is determined by evaluating and averaging several key factors that influence the attractiveness and viability of hiring software engineers in the country. These factors are assessed on a scale from 1 to 10, where 10 represents the highest performance or most favorable conditions.

Hiring Software Engineers in Georgia

Georgia: The Caucasus Tech Hub

Georgia has emerged as one of the fastest-growing technology destinations in the Caucasus region and Eastern Europe. The country’s IT sector has experienced remarkable growth, with the number of IT companies rising from approximately 2,000 in 2020 to over 24,000 by 2024. The tech sector contributed GEL 4.2 billion (5.2% of Georgia’s total economy) by 2023, making it one of the country’s most significant industries.

Georgia’s strategic location at the crossroads of Europe and Asia, combined with its business-friendly environment and attractive tax incentives for IT companies, has positioned it as an emerging destination for software development outsourcing.

Georgian Tech Success Stories

Georgia has produced notable technology companies and attracted international firms building products from Tbilisi:

Georgian-Founded Product Companies:

• Pulsar AI - Conversational AI platform for automotive dealerships. Became the first Georgian startup to attract $1.2 million from Silicon Valley investors and the first to achieve a successful global exit when acquired by SpinCar (now Impel)
• Space Neobank - Digital-only bank launched by TBC Bank, built from concept to launch in 8 months. Serves millions of users across Georgia and Uzbekistan with no physical branches
• Payze - Online payment platform for merchants that has expanded into Central Asia
• Keepz.me - QR code payment platform launched in 2024, enabling payments via Apple Pay, Google Pay, and crypto for 200+ businesses

International Product Companies with Tbilisi Operations:

• SOFTSWISS - International iGaming platform company with 400+ employees in Tbilisi. Won “Workplace of the Year 2022” at SIGMA Europe. Develops casino platforms, sportsbook software, and payment processing solutions
• TBC Bank - Georgia’s largest bank, listed on the London Stock Exchange. Winner of multiple Global Finance awards for best mobile and internet bank worldwide. Pioneer in open banking and Banking-as-a-Service

Why Companies Choose Georgia:

• Exceptional Tax Incentives: 5% corporate and personal income tax for international IT companies (vs. standard 15%/20%)
• Virtual Zone Benefits: 0% corporate tax and no VAT for qualified IT exporters
• Cost Efficiency: 55-80% cost savings compared to Western European development teams
• Business-Friendly Environment: Ranked #2 globally in Operational Efficiency by World Bank B-READY 2024
• Strategic Location: UTC+4 timezone provides overlap with both European and Asian business hours
• Growing Talent Pool: Over 30,000 IT professionals and rapidly expanding tech ecosystem

Key Facts About Hiring Software Engineers in Georgia

• Growing Talent Pool: Georgia’s IT sector employed over 30,200 professionals by 2023, a significant increase from 5,000 in 2021, demonstrating the rapid growth of the tech workforce.
• Cost-Effective: Georgia offers highly competitive rates with 55-80% cost savings compared to Western Europe and the US, while providing quality technical talent.
• Quality of Work: Georgian developers are known for their strong technical foundations, with top universities offering ABET-accredited computer science programs.
• Time Zone: Georgia Standard Time (GET/UTC+4) provides excellent overlap with European business hours and reasonable coverage for Asian markets.
• Language: English proficiency is growing among IT professionals, with increasing government investment in English education.
• Ease of Doing Business: Georgia ranks among the top 3 countries globally in the World Bank’s new Business Ready (B-READY) ranking for 2024.
• Innovative Tech Scene: Georgia has a vibrant startup ecosystem centered in Tbilisi, with numerous tech events, startup accelerators, and R&D initiatives.
• IT Sector Revenue: The Georgian IT services sector grew from GEL 232 million to GEL 3 billion between 2017 and 2023—a 13-fold increase.
• Number of IT Companies: Georgia is home to over 24,000 IT companies, with 84% being international firms as of 2024.
• Internet Infrastructure: Georgia ranks 10th globally in mobile internet speed (140.76 Mbps as of December 2024) following aggressive 5G investments, though fixed broadband infrastructure is still developing.
• Universities and Education: Georgia’s leading technical institutions, including Georgian Technical University and Ivane Javakhishvili Tbilisi State University, offer computer science programs with international partnerships (including SDSU) and ABET accreditation.

Benefits of Hiring Software Engineers in Georgia

• Strong Technical Proficiency: Georgian software engineers demonstrate solid technical knowledge with proficiency in modern programming languages and frameworks including JavaScript, Python, Java, and React.
• Favorable Tax Environment: Georgia offers one of the most attractive tax regimes for IT companies, with the “International Company” status providing 5% tax rates and Virtual Zone offering 0% corporate tax.
• Cost-Effective Talent: Hiring software engineers in Georgia offers excellent value with significant cost savings while maintaining quality output.
• Flexible Hiring Options: With Hyperion360, companies can hire Georgian software engineers through various methods, including direct hiring or contractor arrangements.
• Rapidly Growing Tech Scene: Georgia’s tech ecosystem is expanding quickly, with strong government support and increasing international investment.

Benefits of Outsourcing to Georgia

Georgia offers numerous advantages for businesses looking to expand their development capabilities:

• Strategic Location: Georgia sits at the crossroads of Europe and Asia, providing strategic access to multiple markets and favorable timezone coverage.
• Business-Friendly Regulations: Georgia is known for its simplified business registration processes and minimal bureaucracy, making it easy to establish operations.
• Modern Infrastructure: Major cities like Tbilisi and Batumi offer modern infrastructure with excellent mobile connectivity and growing fiber-optic networks.

Common Pitfalls of Hiring Software Engineers in Georgia

While Georgia offers many benefits, there are some considerations:

• Smaller Talent Pool: While growing rapidly, Georgia’s IT workforce is smaller than established outsourcing destinations like Ukraine or Poland. Hyperion360’s network helps you access the best available talent efficiently.
• Language Considerations: While English proficiency is improving, it may vary among professionals. Hyperion360 ensures you connect with candidates who meet your communication requirements.
• Developing Ecosystem: As an emerging tech hub, some specialized skills may be less available than in mature markets. Hyperion360 helps identify candidates with the specific expertise you need.
• Fixed Broadband Limitations: While mobile internet is excellent, fixed broadband speeds are still developing. Hyperion360 ensures your team has adequate connectivity for seamless collaboration.

Hyperion360’s tailored solutions address these challenges, enabling you to successfully hire and manage software engineers in Georgia with confidence and ease.

Business Etiquette in Georgia

Understanding cultural nuances is vital for successful business interactions in Georgia. Here’s a detailed guide to help you navigate these intricacies effectively:

Greetings

• Handshakes: A firm handshake is the standard greeting in business settings. Maintain eye contact to show respect and sincerity.
• Hospitality: Georgians are known for their exceptional hospitality. Don’t be surprised if business discussions include invitations to meals or traditional toasts.

Communication Style

• Warm and Personal: Georgian business culture tends to be warm and relationship-oriented. Building personal connections is important before diving into business matters.
• Directness: Once relationships are established, Georgians appreciate direct and honest communication.

Timekeeping and Punctuality

• Flexibility: While punctuality is appreciated, Georgian business culture may be more relaxed about time compared to Western standards.
• Relationship Building: Meetings may start with extended social conversation before addressing business topics.

Value on Relationships

• Trust Building: Building trust and personal relationships is crucial for successful business dealings in Georgia.
• Long-term Partnerships: Georgians value long-term business relationships over quick transactions.

Business Meetings

• Hospitality: Expect generous hospitality, potentially including traditional Georgian food and wine.
• Toasts (Supra): The Georgian tradition of elaborate toasts during meals (supra) may be part of business entertainment.

By understanding and respecting these cultural nuances, you can foster better relationships and ensure successful business interactions in Georgia. Hyperion360’s tailored solutions help you navigate these cultural intricacies with ease, enabling seamless integration and collaboration with your Georgian team.

Employment Agreements

In Georgia, employment agreements should be in writing and clearly outline key conditions. Essential elements to include are:

• Remuneration: Specify salary and any additional compensation.
• Job Description: Outline roles, responsibilities, and expectations.
• Working Hours: Define standard working hours and any flexibility.
• Place of Work: Mention the primary workplace and any remote work possibilities.
• Probationary Period: State the duration and conditions of the probation (up to 6 months).
• Contract Type: Indicate whether the contract is fixed-term or indefinite-term.
• Company Policies: Include relevant workplace policies and guidelines.

Probationary Periods in Georgia

The maximum probationary period in Georgia is six months. This allows employers to assess the suitability of the software engineer within a defined timeframe. No notice is required during the probation period.

Georgia Payroll Laws

Tax Due Date

The fiscal year in Georgia runs from January 1 to December 31. Tax returns and payments follow standard annual filing requirements.

Payroll Cycle

The payroll cycle in Georgia is generally monthly, with payments made on the same day each month and no later than the last working day of the month.

Working Hours

Standard working hours are typically eight hours per day and 40 hours per week. The working week can be extended to 48 hours in specific sectors.

Minimum Wage and Salaries

In Georgia, the national minimum wage is dependent on the employer contract or Collective Bargaining agreement in place. There is no universally mandated minimum wage.

Bonus Payments

A 13th-month salary is not mandatory in Georgia; however, employers can pay bonuses at their discretion.

Overtime

Overtime is limited to 2 hours per day and 4 hours per week, compensated at a rate of 125% of regular salary, or compensated with additional time off.

Taxes and Social Security in Georgia

Tax Thresholds in Georgia

In Georgia, individuals are considered tax residents if they stay in the country for more than 183 days in a calendar year. Tax residents are subject to tax on their Georgian-source income (foreign-source personal income is tax-exempt).

As of 2024, the Georgian tax rates are as follows:

• Income Tax: 20% flat rate
• Dividends/Interest/Royalties: 5%

Special Tax Incentives for IT Companies

Georgia offers attractive tax incentives for IT companies:

• International Company Status: 5% corporate income tax (vs. 15% standard) and 5% personal income tax (vs. 20% standard) for companies that export services
• Virtual Zone: 0% corporate tax and 0% VAT for qualified IT exporters
• Free Industrial Zone: 0% corporate income tax, 0% dividend tax, 0% property tax, 0% import tax, and 0% VAT for eligible activities

Corporate Tax Rate in Georgia

As of 2024, the corporate tax rates in Georgia are:

• General Corporate Income: 15%
• Financial Institutions: 20% (banks, credit unions, microfinance)
• International IT Companies: 5%
• Non-distributed profits: Exempt from taxation (since 2017)

Social Security Rates in Georgia

In 2024, the social security rates for employees and employers are as follows:

Employer Payroll Contributions in Georgia

Employers in Georgia are responsible for the following payroll contributions:

• Pension Contribution: 2.00% of the employee’s salary (not applicable for workers whose permanent residence is not in Georgia)
• Total Employment Cost: 2.00%

Employee Payroll Contributions in Georgia

Employees in Georgia contribute to the pension system:

• Pension Contribution: 2.00%
• Total Employee Cost: 2.00%

Health Insurance in Georgia

Georgia has a universal healthcare program, but many employers provide additional private health insurance to access enhanced medical services and shorter wait times.

Pension in Georgia

Georgia’s pension system includes mandatory contributions of 2% each from both employers and employees (4% total) for Georgian residents.

Paid Time Off in Georgia

Annual Paid Leave

Georgian labor law guarantees employees a minimum of 24 working days of paid annual leave per year. Workers in hazardous roles may be eligible for an additional 10 paid calendar days off per year.

Upon completing 11 months of service within a single organization, workers are eligible for an additional 15 days of unpaid vacation leave.

Parental and Maternity Leave

• Maternity Leave: 126 days of pregnancy and childbirth leave, or 143 days in case of complications or birth of twins. Employees receive 100% of their daily wage (up to 2,000 GEL total). An additional 604 days of maternity leave is available.
• Parental Leave: 57 days can be taken from maternity leave and used by either the mother or father for childcare.
• Childcare Leave: Additional two weeks’ leave per year may be granted for employees with children under 5 years old.

Sick Leave

Employers are obligated to pay regular salary for temporary incapacity up to 40 consecutive calendar days or a total incapacity period not exceeding 60 calendar days per 6-month period. A sickness certificate is required from day 1.

Regional and National Holidays

Georgia observes 14 official public holidays:

Fixed Date Public Holidays:

• New Year’s Day (January 1)
• New Year’s Holiday (January 2)
• Orthodox Christmas Day (January 7)
• Orthodox Epiphany (January 19)
• Mother’s Day (March 3)
• International Women’s Day (March 8)
• Independence Restoration Day (April 9)
• Orthodox Good Friday (variable)
• Orthodox Easter Monday (variable)
• Victory Day (May 9)
• St. Andrew’s Day (May 12)
• Independence Day (May 26)
• Day of the Assumption of Mary (August 28)
• Svetitskhovloba (October 14)
• St. George’s Day (November 23)

Note: Public holidays that fall on weekends are usually lost (not transferred to weekdays).

Employment Benefits in Georgia

Georgia’s social security system provides basic benefits including old-age pensions and disability benefits. The pension system is funded by contributions from both employers and employees (2% each).

Termination and Notice Period in Georgia

Notice Period

The notice period for both employers and employees is 30 calendar days. Notice must be given in writing. No notice is required during the probation period.

Severance Pay

An employee is entitled to at least one or two month’s salary as severance pay upon dismissal; the exact rate depends on the termination reasoning.

Termination Process

Employment agreements can be terminated for reasons including change in economic circumstances, organizational changes requiring downsizing, role incompatibility, long-term incapacity for work, or other objective circumstances justifying termination.

Understanding these aspects of employment benefits in Georgia helps you navigate the complexities of hiring and managing staff. With Hyperion360, you can ensure compliance with local regulations while optimizing your global staffing strategy. Enhance your workforce with top Georgian talent today!

Work-from-Home Arrangements and Remote Work in Georgia

Georgia has embraced remote work arrangements, making it an attractive destination for distributed teams:

• Legal Framework: Georgian labor laws accommodate remote work arrangements when agreed upon by employer and employee.
• Work Environment: Employers should ensure remote employees have suitable work environments and necessary equipment.
• Digital Infrastructure: With excellent mobile internet (ranked 10th globally) and improving fixed broadband, Georgia supports remote work effectively.
• Communication: Clear communication channels and regular check-ins are essential for remote work arrangements.

With Hyperion360 you don’t have to worry about compliance with local regulations for your Georgian team.

How Hyperion360 Can Help You Hire Software Engineers in Georgia

Navigating the complexities of hiring and managing software engineers in Georgia can be challenging, but Hyperion360 simplifies the process with our comprehensive global staffing services. When you partner with Hyperion360, you pay us directly, and we take on all the legal and compliance risks, managing every aspect of HR, benefits, payroll, and local taxes.

Our Services Include:

• Assuming Legal and Compliance Risk: Hyperion360 hires the software engineers directly, eliminating the legal risks of complying with Georgian law for your company.
• Managing HR Functions: We handle all HR-related tasks, from recruitment and onboarding to managing paid leave and termination, ensuring a smooth and efficient process.
• Administering Benefits: Hyperion360 oversees employee benefits, including health insurance and other statutory benefits, ensuring your workforce is well-supported and highly engaged.
• Efficient Payroll Management: Our services include managing payroll cycles, payroll taxes, and bonus payments seamlessly. We handle all payroll processing, ensuring accuracy and timely payments for your software engineers.
• Handling Local Taxes: The monthly fee you pay us for software engineers is inclusive of local payroll taxes, benefits, legal, HR, accounting, etc., so you can focus on your core business operations.

Benefits of Partnering with Hyperion360:

• Access to Top Talent: Leverage our network to access a pool of skilled software engineers in Georgia, ensuring you hire the best talent for your needs.
• Streamlined Processes: Our integrated approach simplifies the hiring and management process, reducing administrative burdens and allowing you to focus on strategic business goals.
• Cost-Effective Solutions: By managing HR, benefits, payroll, and compliance, we help you save time and resources, offering a cost-effective solution for expanding your team in Georgia.
• Comprehensive Support: From recruitment to ongoing management, Hyperion360 provides full support to ensure your Georgian workforce is effectively managed and aligned with your business objectives.

With Hyperion360, you can confidently expand your tech team in Georgia, leveraging our expertise to overcome common challenges and maximize the benefits of hiring skilled software engineers in this dynamic market.

Ready to hire software engineers in Georgia? Contact us to learn more about how Hyperion360 can support your global staffing needs.

Employment Law and Regulations

Working Hours and Overtime

• Standard Hours: 8 hours/day, 40 hours/week standard (up to 48 in specific sectors)
• Overtime Pay: 125% of regular salary
• Vacation: 24 working days annually minimum

Leave Policies

• Maternity Leave: 126 days paid (143 for twins/complications)
• Parental Leave: 57 days (can be used by either parent)
• Termination Notice: 30 calendar days

Tax System and Compliance

Tax Rates

• Income Tax: 20% flat rate (5% for international IT companies)
• Corporate Tax: 15% (5% for international companies, 0% in Virtual Zone)
• VAT/Sales Tax: 18%
• Social Security: 4% total (2% employer + 2% employee pension)

Unique Country Facts

• Birthplace of wine with 8,000 years of winemaking tradition (UNESCO recognized)
• Second country in the world to adopt Christianity (326 AD)
• Home to 3 UNESCO World Heritage Sites
• Only country with 3 unique alphabets on UNESCO’s Intangible Heritage list
• Ranked #2 globally in Operational Efficiency (World Bank B-READY 2024)
• Contains some of the oldest human remains outside Africa (1.8 million years old)
• One of the most business-friendly countries in the world
• 98 countries can enter visa-free for up to one year

Employment Law and Regulations

Working Hours and Overtime

• Standard Hours: 8 hours/day, 40 hours/week standard
• Overtime Pay: 125% of regular salary
• Vacation: 24 working days annually minimum

Leave Policies

• Maternity Leave: 126 days paid
• Parental Leave: 57 days (transferable between parents)
• Termination Notice: 30 calendar days

Tax System and Compliance

Tax Rates

• Income Tax: 20% flat rate
• Corporate Tax: 15% (5% for international IT companies)
• VAT/Sales Tax: 18%
• Social Security: 4% total (2% employer + 2% employee)

Employment & Tax Insights

Employment & Tax Information

• Working Hours: 40 hours standard, can extend to 48 in specific sectors
• Vacation Days: 24 working days minimum annual leave
• Maternity leave at 100% of daily wage (capped at 2,000 GEL total)
• After maternity leave, either parent can take 604 days additional leave

Additional Country Insights

• Georgia’s IT sector grew 13-fold between 2017-2023
• Tbilisi hosts the largest concentration of tech companies in the Caucasus
• 5G launched commercially in October 2024
• Georgia produces over 500 unique grape varieties
• The country has a 99.8% literacy rate

Realistic Salary Expectations vs US Costs

Georgia Developer Salaries (Fully Burdened)

Key Point: Low Payroll Burden Georgia has one of the lowest payroll burdens globally at only 4% total (2% employer + 2% employee pension contributions).

Details: Pension contributions + annual leave + other benefits

US Cost Comparison

US equivalent roles cost $100,000-$185,000 fully burdened (including $30,000+ overhead per engineer for benefits, taxes, office space, equipment, and administrative costs).

Reality Check: With Georgia’s minimal payroll burden and competitive base salaries, international hiring provides 60-75% cost savings compared to US fully burdened costs.

What Tech Leaders Say About Hiring Developers in Georgia

“Georgian developers bring strong technical skills and a genuine enthusiasm for their work. The favorable tax environment and competitive rates make Georgia an excellent choice for building development teams. Our Tbilisi team has consistently delivered quality work.”

VP of Engineering - Software Company

“We’ve been impressed with the quality of talent coming out of Georgia. The country’s investment in tech education and business-friendly environment makes it an emerging destination we’ll continue to invest in.”

CTO - Tech Startup

“Georgia offers a unique combination of skilled developers, excellent tax incentives, and cost efficiency. Our team there has integrated seamlessly with our distributed workforce.”

Director of Engineering - SaaS Platform

Ready to Start Hiring in Georgia?

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Related Resources

Similar Countries for Development

• Ukraine Outsourcing - Compare Georgia outsourcing with Ukraine outsourcing
• Poland Outsourcing - Compare Georgia outsourcing with Poland outsourcing
• India Outsourcing - Compare Georgia outsourcing with India outsourcing
• Vietnam Outsourcing - Compare Georgia outsourcing with Vietnam outsourcing

Our Services

• Staff Augmentation - Scale your team with Georgian developers
• Team Extension - Extend your team with Georgian developers
• Contingency Recruiting - Find the perfect Georgian talent for permanent roles
• Contractor of Record (COR) - Hire Georgian contractors compliantly
• Employer of Record (EOR) - Employ Georgian developers without local entity

Helpful Resources

• Contact Us - Get started with your Georgia development team
• About Hyperion360 - Learn more about our company and mission
• Case Studies - See how we’ve helped other companies succeed

Ready to Hire Software Engineers in Georgia?

Disclaimer: While we make every effort to research and update our country guides regularly, some information may be incomplete, inaccurate, or out of date. This content is provided for general informational purposes only and should not be relied upon as a substitute for professional advice. If you notice any errors or omissions, please let us know.