Types of bank accounts in Georgia

When I first came to Georgia, it seemed to me that opening a bank account was something out of the realm of fantasy. But it turns out that it is not so complicated if you understand the types of accounts. Let's dive into this topic together and look at what options the Georgian banking system offers.

Current accounts

A current account is what you need for your day-to-day transactions. You will have access to accounts with GEL, USD and EURand it is very convenient for those who frequently travel or do business with foreign partners. For example, Alex moved to Tbilisi from London and appreciated the opportunity to keep money in different currencies. Moreover, opening such an account is usually free of charge, but small fees may be charged for service, in the order of $3.60 - $7.20 USD per month.

Deposit accounts

If you want to not only store but also multiply your savings, a deposit account is your choice. It is a savings account with interest that depends on the amount and term of the deposit. For example, in Bank of Georgia you can get up to 6% p.a. on deposit in GEL. It is important to note that the longer the deposit period, the higher the interest. This is a great option for those who plan to stay in Georgia for a long time.

Multi-currency accounts

For those who don't want to be limited to one currency, there is a multi-currency account. This is a real boon for expats and international businessmen. For example, Irina, who works for an IT company, uses such an account for the convenience of settling accounts with clients from different countries. You can freely transfer funds between currencies and it can save you a lot of money on conversions.

Important: Before choosing an account type, you should carefully study the terms and conditions of each bank. For example, TBC Bank offers favourable conditions for multi-currency accounts, especially for clients who frequently make international transfers.

Approximate cost

Opening an account with a Georgian bank is usually not expensive. However, you should take into account that some types of accounts may be subject to fees. For example, for a current account with TBC Bank you'll pay about $5.45 per month. Deposit accounts, on the other hand, do not require opening and maintenance fees, but it is important to specify the conditions for early withdrawal of funds.

So, choosing the type of Georgia account depends on your personal goals and financial plans. Whether it's everyday spending, savings or international transactions, Georgian banks offer a wide range of options.

Who can open an account: residents

When it comes to opening a bank account in Georgia, residents of the country, including citizens and holders of a residence permit (LPR), are in a more favourable position. Let's delve deeper into the process and see what advantages and features it offers.

Simplified process

For residents of Georgia, opening a bank account is a matter of a day. You only need two documents: passport и Georgian identity card. This greatly simplifies the process and saves time. For example, my colleague Nino opened an account with Bank of Georgia in literally half an hour.

Benefits for residents

1. Free account opening: Most banks, including TBC BankThey offer free opening of current accounts for residents. This is a pleasant surprise, especially when compared to other countries where there may be hidden fees.
2. Low service fees: On average, monthly service fees are approx. $3.60 - $7.20 USD. This is really favourable, especially when you consider that many banks offer packages with free transfers and cash withdrawals.
3. Access to loans and deposits: Residents have easier conditions for obtaining loans and opening deposit accounts. For example, interest rates on deposits can be as high as 5-6% p.a.This makes them an attractive instrument for savings.

Account opening process

1. Document preparation: Make sure you have all the necessary documents - passport and ID card.
2. Visit to the bank: Visit a branch of the selected bank. For example. Liberty Bank the process takes no more than an hour.
3. Filling in the questionnaire: Fill in a standardised questionnaire, providing personal details.
4. Signing of the contract: After the documents have been checked, you will sign an account opening agreement.

Approximate cost

As mentioned above, opening an account for residents is most often free of charge. However, a small fee may be charged for account maintenance, which is quite justified, given the convenience and speed of service.

Thus, if you are a resident of Georgia, opening a bank account is an easy and quick process that opens access to a multitude of financial instruments and services.

Who can open an account: foreigners (non-residents)

Opening a bank account in Georgia for foreigners is a procedure that may seem complicated, but it is quite feasible with proper preparation. Let's find out what steps should be taken and what documents should be collected to make everything go smoothly.

Requirements for non-residents

Foreigners in Georgia need to be prepared for banks to request additional documents. This is due to the need to comply with international security standards, such as KYC (Know Your Customer). Here's what you'll need:

1. Passport: The main document that proves your identity.
2. Confirmation of incomeThis can be an employment contract, a bank statement or property documents. Banks want to make sure that your funds are legal.
3. Local phone number: To contact and receive SMS notifications.
4. Application and questionnaire: To be filled in at the bank branch.
5. Letter of Recommendation: Sometimes a letter of recommendation from your current bank is required.

Approximate cost

Opening an account for foreigners may involve some fees. For example, in TBC Bank there may be a charge of approx. 18 USD for opening an account. In addition, monthly service fees may be as follows 5.5-11 USD.depending on the services selected.

Account opening process

1. Collection of documents: Make sure you have all the necessary documents before you go to the bank.
2. Visit to the bank: Visit the branch, e.g, Bank of Georgiaand they will help you fill out all the necessary forms.
3. Awaiting approval: The verification process can take a few days, so be prepared to wait a bit.
4. Finalising the design: Once approved, you will be able to activate your account and start using it.

Features and tips

• Preparing documents in advance: This will help avoid delays and misunderstandings.
• Be patient: The verification process can take some time, especially if you have a complicated financial history.
• Search for alternatives: If the process seems too complicated, consider using online multi-currency services such as Wise for temporary needs.

Thus, opening an account for foreigners in Georgia is a feasible task if approached with the right preparation and understanding of the process.

Tax resident status

The status of a tax resident in Georgia can significantly affect your financial possibilities and conditions for opening a bank account. Let's take a look at what it is and what advantages it provides.

What is a tax resident?

A tax resident of Georgia is defined as any person who spends more than 183 days a year. This status affects how you will be taxed and what financial services will be available to you.

Advantages of the status

1. Simplified account opening: Tax residents have access to more favourable terms at banks. For example, in Bank of Georgia they can open an account without additional checks and with minimal fees.
2. Lower tax rates: Residents can benefit from favourable tax conditions, which is especially important for investors and entrepreneurs.
3. Access to loans and deposits: Tax residents can expect more favourable interest rates on loans and deposits. For example, in TBC Bank Deposit rates for residents can reach up to 6% p.a..

How do I get a tax resident status?

In order to obtain the status of a tax resident, it is necessary to spend in Georgia more than 183 days during the calendar year. This can include both the continuous stay and the total number of days.

Important: Make sure you have all the necessary documents to prove your stay in the country, such as visas, registration and other official papers.

Approximate cost

There is no additional cost to obtaining tax residency status in and of itself. However, if you plan to use this status to open an account or other financial transactions, you may need to pay for a notary or interpreter to complete the paperwork.

Tax residency status in Georgia opens up many opportunities for more favourable management of your finances. This is especially true for those who are planning a long-term stay in the country or running a business. Prepare in advance and make sure you meet all the requirements for this status.

The best banks in Georgia for foreign investors

When you plan to invest in Georgia, choosing a bank becomes a key decision. Let's take a look at which banks offer the best conditions for foreign investors and why they deserve your attention.

Bank of Georgia

Bank of Georgia - is the largest bank in the country, which offers a wide range of services for foreign investors.

Benefits:

• Premium Solo package: This package provides access to personalised banking, investment advice and exclusive offers.
• Multi-currency accounts: Possibility to open accounts in GEL, USD and EUR.
• Online banking: A modern platform to manage your finances from anywhere in the world.

Cost:

• Account opening: free of charge.
• Maintenance of premium package: approx. 73.70 USD per year.

You can find out more at their official website.

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TBC Bank

TBC Bank is known for its innovative approach and well-developed online banking system.

Benefits:

• Digital solutions: Convenient mobile application and internet banking.
• Investment services: Advice and support for investors.
• 24/7 support: 24/7 customer service.

Cost:

• Account opening: free of charge.
• Service: from 5.5-11 USD per monthdepending on the services selected.

Details are available at TBC Bank's website.

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Liberty Bank

Liberty Bank offers favourable conditions for those who want to invest in property or business.

Benefits:

• Special programmes for investors: Reduced rates on property loans.
• Wide branch network: Accessibility of services across the country.
• Investment counselling: Support in choosing the best solutions.

Cost:

• Account opening: may be charged a fee of approx. 18.20 USD..
• Service: varies depending on the package.

Read more at Liberty Bank's website.

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Choosing a bank in Georgia for foreign investors depends on your specific needs and goals. However, Bank of Georgia, TBC Bank и Liberty Bank offer excellent terms and support that can make your investment process much easier. Be sure to explore all available options and choose the one that best suits your requirements.

Remote (online) account opening

In today's world, more and more people prefer to solve financial issues online. Georgia is not lagging behind this trend, offering opportunities for opening bank accounts remotely. Let's find out how it works and which banks provide such services.

Remote opening options

Some Georgian banks allow you to start the process of opening an account from the comfort of your home. This is especially convenient for those who have not yet travelled to the country or want to save time.

Bank of Georgia

Bank of Georgia offers to fill out an online KYC form, which is the first step to opening an account.

• Process: Fill in the application form on the bank's website and wait for consideration.
• Timing: The review usually takes about weeks.
• Cost: The online application form is free of charge, but standard fees may apply for subsequent services.

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TBC Bank

TBC Bank offers the possibility of remote account opening by means of a callback.

• Process: Leave an application on the official website and a manager will contact you for further instructions.
• Timing: The process can take a few days.
• Cost: Account opening is free of charge, but please note possible service fees.

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Wise as an alternative

If you're looking for an even simpler solution, check out the Wise. It is a multi-currency online service that allows you to manage your funds without having to visit a bank.

• Advantages: Easy to use, favourable exchange rates.
• Cost: Registration is free, but small fees may apply for transfers.

Advantages of online opening

• Time saving: There is no need to visit the bank in person.
• Convenience: Manage your finances from anywhere in the world.
• Accessibility: Suitable for busy people and those who have not yet travelled to Georgia.

Remote account opening in Georgia is a real opportunity that saves you time and effort. Bank of Georgia и TBC Bank offer convenient online solutions, and Wise can be a great alternative for those who value simplicity and speed. Be sure to review the terms and conditions and choose the best option for your needs.

Taxes, commissions and other expenses

When you open a bank account in Georgia, it is important to understand the taxes and fees that may arise. Let's take a detailed look at what costs you may encounter and how to minimise them.

Bank charges

Account opening and maintenance

Most Georgian banks offer free account opening, but monthly service fees may apply.

• Bank of Georgia: About. $3.60 - $7.20 USD per month for a standard bill.
• TBC Bank: The service ranges from 5.5-11 USD. depending on the package.

These fees cover basic services such as access to online banking and ATM withdrawals.

Cash withdrawals and transfers

Cash withdrawals from your bank's ATMs are usually free, but additional fees may apply for using other banks' ATMs.

• TBC BankCash withdrawal fee from other banks is approx. 0.2-0.6%.
• Translations: Domestic transfers are often free of charge, but international transfers may incur a fee of approx. 1% of the amount.

Taxes

From 2024, Georgia participates in the CRS (Common Reporting Standard)This means automatic exchange of tax information with other countries.

Tax liabilities

• For residents: Income earned both in Georgia and outside Georgia is taxable.
• For non-residents: Only income earned in Georgia is taxable.

Important: Foreigners, especially Russians, should file their account details with their home country's tax office to avoid penalties.

Hidden costs

Some banks may charge additional fees for specific services such as:

• Currency conversionThe Commission may reach 1-2%.
• Account closure: Some banks may charge an early closing fee.

How to minimise costs

• Compare terms and conditions: Study the offers of different banks to choose the most favourable ones.
• Use online banking: This can help avoid additional transaction fees at branches.
• Keep up to date with tax changes: Keep up to date with tax obligations and changes in the law.

Understanding taxes and fees is key to successfully managing your finances in Georgia. Explore the terms and conditions in Bank of Georgia, TBC Bank and other banks to choose the most suitable option and avoid unnecessary costs.

Useful tips for foreign investors

Investing in Georgia can be a great opportunity to grow your capital. However, it's important to consider some nuances to make sure everything goes smoothly. Here are some tips to help you successfully manage your investments.

1. Prepare documents in advance

Before you open an account, make sure you have all the necessary documents:

• Passport and a copy of it.
• Confirmation of income: employment contract, bank statement.
• Letter of Recommendation from your current bank can boost confidence.

This will help speed up the account opening process and avoid delays.

2. Buy a local SIM card

You will need a Georgian phone number to receive SMS confirmations and to contact the bank. This will simplify many processes, including access to online banking. The cost of a SIM card usually does not exceed $3.60.

3 Examine tax liabilities

From 2024, Georgia participates in the CRS (Common Reporting Standard)This requires banks to exchange tax information with other countries. Make sure that you are aware of your tax obligations and file reports with your home country's tax authorities in a timely manner.

4. Consider multi-currency accounts

If you plan to work with different currencies, a multi-currency account can be a great solution. It avoids unnecessary conversion fees and simplifies international transfers.

• Bank of Georgia и TBC Bank offer favourable terms for such accounts.

5. Be prepared for reporting

If you plan to invest large sums or run a business, be prepared for additional checks and reporting. This is standard practice to ensure transparency and compliance with international norms.

6. Use online banking

Many Georgian banks offer convenient online banking platforms, allowing you to manage your finances from anywhere in the world. This is not only convenient, but also helps you avoid unnecessary fees for traditional banking transactions.

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🔗 Useful links

1. TBC Bank
   On the website you will find information about banking products and services for individuals and legal entities: accounts, deposits, loans, investments, online banking and much more. A personal account and tools for remote servicing are also available.
2. Bank of Georgia
   The site offers a variety of banking services, including account opening, deposits, loans, transfers and insurance. Digital services such as mobile banking, chat support and automatic payments are also available.
3. Liberty Bank
   The site offers a variety of banking services for individuals and businesses, including deposits, loans, cards, transfers, as well as remote services and premium banking products. Tools are also available to track exchange rates, book appointments and get advice online.

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Conclusion

Opening a bank account in Georgia is a step that opens up many opportunities for foreign investors. Thanks to simple conditions, variety of services offered and favourable financial instruments, Georgia is becoming attractive for doing business and managing personal finances.

By following our recommendations and taking into account all the nuances, you will be able to confidently navigate the banking system of this country. If you need additional help or advice, do not hesitate to seek expert support. This will allow you to avoid possible difficulties and maximise the use of all available resources.