Georgia (the country) has moved towards financial transparency by joining the Common Reporting Standard (CRS), a global system that regulates the exchange of financial information between banks and international tax authorities. If you plan to open a bank account in Georgia, understanding the CRS is essential to comply with regulations and ensure a smooth banking experience. At tucuentaengeorgia.com, we provide clear information to navigate this process.
Last updated: July 20, 2025. Regulations may change, so we recommend consulting official sources such as the CRS MCAA signatory list or the website of the Revenue Service of Georgia for the latest updates. If you need assistance, please contact us.
What is the CRS and where Does it Come from?
The Common Reporting Standard (CRS), developed by the Organisation for Economic Co-operation and Development (OECD) in 2014, is a framework for the Automatic Exchange of Information (AEOI). This system establishes guidelines that allow participating countries to collect financial data from their banking institutions on non-resident taxpayers and share it annually with other adhering jurisdictions. In simple terms, if you reside in one country and have an account in another, the authorities in the country where the account is located will collect details about your financial movements and send them to your country of tax residence, provided both are part of the CRS, to combat transnational tax evasion.
More than 100 jurisdictions, including Georgia, have adopted this commitment, based on the Convention on Mutual Administrative Assistance in Tax Matters. Article 6 of this convention defines the scope and methods of exchange, while the CRS Multilateral Competent Authority Agreement (CRS MCAA) facilitates its global implementation. By signing the CRS MCAA, countries commit to sharing data with other signatories, eliminating the need for individual bilateral agreements.
European Union, United States and Georgia
The European Union has implemented information exchange agreements (EU CRS agreements) with non-member countries, such as Georgia, obliging them to report data to member states. Other countries may establish bilateral treaties, such as agreements to avoid double taxation. However, the United States does not participate in the CRS, using instead the Foreign Account Tax Compliance Act (FATCA) since 2010, which requires foreign financial institutions to report accounts of U.S. citizens. Georgia, as a signatory to FATCA, complies with this obligation under the Tax Code of Georgia (articles 43.2^1, 49.1.n, 70.3^1 and 71.1.h), allowing the Revenue Service of Georgia (RS) to share information with the IRS.
How Does the CRS Affect Non-Residents in Georgia?
If you are a non-resident and open an account in Georgia, banks will request additional information, such as your country of tax residence and your tax identification number (TIN). This data may be transmitted to the tax authorities of your country of origin if it is subscribed to the CRS. The key aspects of the process are detailed below:
Data Subject to Exchange
Financial institutions must collect and share information, including:
- Name and address of the account holder.
- Tax identification number (TIN) and jurisdiction of tax residence.
- Account number and name of the financial institution.
- Balances, values and income generated (such as interest or dividends).
Although banks are primarily responsible, these obligations may also apply to investment funds and trusts, depending on local regulations.
Legal Framework and Obligations
To implement the CRS, member countries, including Georgia, must establish:
- Local regulations that require financial institutions to collect and report data to tax authorities.
- Policies that protect the confidentiality of the information collected.
- Laws that require local tax authorities to share data with their foreign counterparts.
Georgia signed the CRS MCAA on November 9, 2022, with the first exchange of information scheduled for September 2024, marking its commitment to global financial transparency.
Information Exchange Process
The data flow follows these steps:
- Collection by financial institutions: Banks collect data from accounts of individuals who are tax residents in countries with which Georgia must exchange information, using “Know Your Customer” (KYC) and anti-money laundering (AML) procedures.
- Reporting to the Revenue Service of Georgia: Institutions send the data to the RS before June 30 of the year following the reported period.
- International exchange: The RS transfers the information to the jurisdiction of tax residence of the holder, if it participates in the CRS.
Determination of Tax Residence
Establishing tax residence is a critical step. In Georgia, a person is considered a tax resident of the country where they have their habitual residence, but this must be supported by official documentation, such as passports, utility bills (e.g. electricity or water), or tax residence certificates. Financial institutions apply due diligence procedures to verify this information, and it is recommended to consult with a tax expert to ensure compliance.
Important Considerations
Georgia’s adherence to the CRS reinforces its commitment to global financial transparency, affecting individuals and companies with bank accounts in the country. It is crucial to understand how your financial information is shared and its potential tax implications. Given that the implementation of the CRS depends on the transposition into national legislation and specific agreements, it is advisable to consult with our tax advisors at Tu Empresa en Georgia for the most up-to-date information, as the planned dates may have changed or still be in transition.
