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When you think of Georgia, what comes to mind? Whether it’s wine, beautiful mountains and ancient history, the first step is forward; We’re talking about the country of Georgia (not the state).
BUT
Let’s face it, you’re just scratching the surface.
You may be wondering what exactly is a secret? The Caucasus Trio is quietly becoming a powerhouse in the global talent market, especially for remote work.
Historically, the region was an important part of the Silk Road—at the crossroads of culture and commerce connecting East and West.
Fast forward to today, and it’s a thriving business landscape—driven by technological and digital innovation—that is capturing the attention of entrepreneurs and remote teams around the world.
Since the collapse of the Soviet Union in the early 1990s, Georgia, Armenia and Azerbaijan have each carved their own path as dynamic economies with supportive government policies, strong technological centers and talent that have an ever-increasing skill set that makes the Caucasus irresistible for companies looking to recruit remote workers.
And let’s be real—where else can you hire a high-end professional and celebrate with a glass of 8,000-year-old wine?
Why choose Georgia and the Caucasus to hire remote workers?
Forget what you think you know about Georgia and the Caucasus—it’s not just about stunning landscapes and rich history. A new story is unfolding here, and it’s all about tech and entrepreneurship.
Georgia’s Tech Transformation: Beyond Wine and Ancient Traditions
Georgia is moving beyond traditional industries like agriculture and mining and turning its attention to technology and digital start-ups. The capital Tbilisi is fast becoming a tech hub, thanks to initiatives such as Virtual Zone Status which offers significant tax incentives for IT companies, including a 0% corporate income tax rate and VAT exemptions, making it an attractive location for tech startups and international businesses looking to hire remote talent.
Cultural Compatibility: Georgia’s unique mix of Eastern and Western influences creates a work culture that syncs seamlessly with both European and American business practices. When you work with Georgian remote teams, you’ll find a natural understanding and synergy that can make all the difference in collaboration.
Time Zone Advantage: If you've ever struggled to find a time that works for a call with a team spread across continents, you’ll appreciate Georgia’s time zone. Georgia’s time zone aligns conveniently with many major markets, making real-time collaboration a breeze.
Understanding time differences: Georgia Vs. Germany Vs USA
Companies like Natix GmbH, based in Hamburg, Germany, are a testament to the effectiveness of hiring from Georgia's growing talent pool. By partnering with Gegidze, Natix successfully built a remote team of 10 top-notch professionals, saving over €112,800 annually in costs. This partnership underscores the value that Georgian tech hubs bring to the table.
Growing Tech and IT Hubs in the Caucasus
Tbilisi isn’t alone in this transformation. Yerevan, the capital of Armenia, and Baku, the capital of Azerbaijan, are also making strides in tech. These cities are becoming regional hubs for startups and innovation, thanks to the creation of free economic zones, tech parks, and incubation centers that promote entrepreneurship and economic growth.
These hubs support innovation by providing incubation and acceleration programs, grants, and flexibility in hiring international employees. This pro-business environment makes it easier for global companies to tap into the local talent pool without bureaucratic hurdles.
The Talent You Didn’t Know You Needed
Georgia’s workforce is a diverse and dynamic talent pool (or maybe ocean?!), particularly in the IT sector. From highly skilled developers to creative designers, the talent here is not only technically proficient but also culturally adaptable, making them perfect for global projects.
Why Remote Workers Love Georgia & the Caucasus
It’s not just the low cost of living that’s attracting digital nomads to Georgia and the Caucasus; it’s the entire package—affordability, a rich cultural environment, and a welcoming attitude toward foreigners.
Cost of Living and Quality of Life
Compared to popular digital nomad hotspots like Lisbon or Bali, cities like Tbilisi, Yerevan, and Baku offer a significantly lower cost of living. For instance:
Category | Lisbon, Portugal | Bali, Indonesia | Tbilisi, Georgia | Yerevan, Armenia | Baku, Azerbaijan |
Accommodation (1-Bedroom Apt.) | $900 - $1,500 | $400 - $700 | $300 - $500 | $350 - $550 | $400 - $600 |
Coworking Space (Monthly Pass) | $150 - $250 | $100 - $200 | $90 - $180 | $100 - $150 | $120 - $200 |
Meal (Inexpensive Restaurant) | $12 - $20 | $3 - $7 | $5 - $10 | $5 - $8 | $6 - $10 |
Groceries (Monthly) | $250 - $350 | $150 - $250 | $150 - $200 | $160 - $220 | $170 - $230 |
Public Transportation (Monthly) | $45 - $55 | $15 - $30 | $10 - $15 | $10 - $15 | $12 - $20 |
Internet (Unlimited Data Plan) | $30 - $45 | $25 - $40 | $10 - $20 | $15 - $25 | $20 - $30 |
Fitness Club Membership | $35 - $50 | $30 - $45 | $25 - $40 | $30 - $45 | $35 - $50 |
Cappuccino (Cafe) | $2.50 - $4 | $1.50 - $3 | $1.50 - $2.50 | $1.50 - $2.50 | $1.80 - $2.50 |
Total Estimated Monthly Cost | $1,500 - $2,400 | $800 - $1,400 | $700 - $1,000 | $750 - $1,050 | $800 - $1,100 |
In addition to affordability, these cities offer a high quality of life with excellent healthcare, diverse cuisine, vibrant culture, and a wide range of leisure activities, from hiking in the Caucasus mountains to exploring ancient historical sites.
Remote-Friendly Infrastructure
Georgia and its neighbors are equipped with numerous coworking spaces, tech incubators, and cafes catering to digital nomads and remote workers. High-speed internet is widely available, ensuring that remote workers remain connected and productive.
Hiring Remote Employees in Georgia and the Caucasus
Hiring remote employees in Georgia, Armenia, and Azerbaijan comes with a range of benefits that are hard to ignore for businesses looking to expand globally. Let’s break it down:
Languages: English, German, French, Russian and local languages (Georgian, Armenian, Azerbaijani).
Currencies: Georgian Lari (GEL), Armenian Dram (AMD), Azerbaijani Manat (AZN)
Capitals: Tbilisi, Yerevan, Baku
Combined Population: Approximately 16.6 million
Strategic Location for Hiring Remote Teams Globally
Located at the crossroads of Europe and Asia, the Caucasus region offers strategic access to both markets. Moreover, with some of the world’s most affordable costs of living, these countries are becoming cost-effective bases for global businesses looking to expand.
Governments in the region, particularly Georgia, have enacted business-friendly policies that reduce taxes on entrepreneurs and simplify business regulations. Therefore, there is sufficient investment in transport, communication, and utilities both in Armenia and Azerbaijan, making the area even more attractive for business.
A Skilled and Adaptable Workforce
The Caucasus region has become a home of a highly educated, multilingual workforce in STEM fields like IT, engineering, finance, and data science. Professionals in Georgia, Armenia, and Azerbaijan are known for their adaptability and openness to different cultures, which makes them ideal candidates for international teams.
And let’s not forget the cost factor (that’s exactly a winning point): labor costs in the region are way more reasonable compared to the western parts of the world, so, if you are thinking about expanding your business in Georgia, it is a smart choice to make your budgets last.
The Caucasus region, particularly Georgia, is seeing significant developments in educational attainment and the tech workforce, thanks to targeted efforts by local institutions and the government.
Budget-Friendly Talent Without Compromising Quality
Compared with hiring costs in Georgia, Western Europe and the U.S. are major savings. Here's a snapshot:
Role | United States | Europe | Georgia |
Software Developer | $110,000 | $75,000 | $36,000 |
QA Engineer | $90,000 | $70,000 | $21,600 |
Data Scientist | $72,000 | $54,000 | $26,400 |
Graphic Designer | $50,000 | $42,000 | $18,000 |
Digital Marketer | $66,000 | $52,000 | $21,600 |
Content Writer | $55,000 | $45,000 | $15,000 |
Social Media Manager | $60,000 | $55,000 | $18,000 |
Project Manager | $84,000 | $66,000 | $20,400 |
HR Specialist | $70,000 | $62,000 | $16,800 |
Customer Support Specialist | $40,000 | $33,000 | $12,000 |
Why spend more when you can hire remote employees in Georgia and get the same, if not better, level of expertise?
A Rich Talent Pool of Diverse Skills
Georgia is brimming with tech-savvy professionals who bring diverse skills to the table. Here’s a closer look:
Software Developers:
PHP, Python
Java
JavaScript
frameworks like:
Django
MEAN stack
Ruby on Rails
LAMP
QA Engineers:
Selenium
JUnit
TestNG
They ensure your products are error-free.
Data Scientists:
R
Python
TensorFlow
DevOps Engineers:
CI/CD pipelines
cloud services
Docker
Kubernetes
They streamline and secure operations.
A Holistic Talent Ecosystem
The talent market in Georgia extends beyond just technical roles. The country offers a balanced ecosystem of professionals with diverse skills, including:
Content Writers:
Specialists in everything from tech content to healthcare, with a strong grasp of SEO and persuasive writing techniques.
Digital Marketers:
Proficient in analytics tools like
Google Analytics
SEMrush
Meta
LinkedIn
YouTube.
Project Managers:
Agile
Scrum
Lean methodologies
HR Specialists: Experts in navigating the complex landscape of talent acquisition, employee engagement, and compliance with both local and international labor laws.
Educational Attainment and STEM Graduates
The boom in tech education is practically all over the Caucasus, but especially so in Georgia: more than 40% of the workforce have tertiary education while the number of STEM graduates has greatly risen through such projects like those by MCC.
Educational institution-corporation collaborations are making for a powerful feedback loop that's constantly feeding the talent pipeline.
These are not just partnerships for education, but the culture of innovation is what will help the students and employers alike. It gets the latest generation prepared for exposure to real-world work experiences, internships, and even directly into cutting-edge projects right at their doorstep to meet global demand.
You can find a detailed report on this project and its impact on the MCC’s official site or through an evaluation by the RAND Corporation (Millennium Challenge Corporation, RAND).
Specialized Fields and Industry Partnerships
More than just tech, Georgia is developing professionals in design, digital marketing, and data science. Beyond that, there are several partnerships with the most diverse education institutions and technology companies to grant students not only experience but also to create a feedback loop to benefit the employer and the future employee, as highlighted in the MCC report, crucial for building diverse talent. For more information on these collaborations and their outcomes, visit the MCC website (Millennium Challenge Corporation).
Government Initiatives
The Georgian government has played an essential role by investing in educational reforms and scholarships, especially in STEM fields. These efforts are aimed at supporting the growth of tech education and creating a pipeline of tech talent in the region. To learn more about the government's role and initiatives in supporting education and industry in Georgia, you can explore the comprehensive reports available on the MCC’s website (Millennium Challenge Corporation).
Working Hours, Pay, and Taxes: What You Need to Know
If you’re considering hiring remote workers from Georgia and the Caucasus, you need to understand local labor laws, pay standards, and taxes. The standard workweek is 40 hours, and the cost of labor is a fraction of what you’d pay in Western markets. Plus, the benefits—like generous leave policies and straightforward tax systems—make it even more attractive.
Working Hours and Pay
Standard Workweek: 40 hours, typically Monday to Friday, across the region.
Minimum Wage:
Georgia: GEL 320 (~USD 100)
Armenia: AMD 68,000 (~USD 140)
Azerbaijan: AZN 250 (~USD 147)
Overtime: Requires a written agreement, generally limited to 2 hours per day and 12 hours per month, with a 1.5x pay rate.
BUT, It can only work on official institutions and is highly advisable not to expect hiring workers at this price.
Still, when compared to Western Europe or the U.S., the cost savings are significant. For example:
Software Developer:
United States: $110,000
Europe: $75,000
Georgia: $36,000
QA Engineer:
United States: $90,000
Europe: $70,000
Georgia: $21,600
Data Scientist:
United States: $72,000
Europe: $54,000
Georgia: $26,400
Graphic Designer:
United States: $50,000
Europe: $42,000
Georgia: $18,000
Digital Marketer:
United States: $66,000
Europe: $52,000
Georgia: $21,600
Content Writer:
United States: $55,000
Europe: $45,000
Georgia: $15,000
Social Media Manager:
United States: $60,000
Europe: $55,000
Georgia: $18,000
Project Manager:
United States: $84,000
Europe: $66,000
Georgia: $20,400
HR Specialist:
United States: $70,000
Europe: $62,000
Georgia: $16,800
Customer Support Specialist:
United States: $40,000
Europe: $33,000
Georgia: $12,000
Payroll & Employer Taxes in the Caucasus Region
Country | Payroll Tax | Employee Contributions | Employer Contributions | Other Taxes |
Georgia | 20% PIT on gross salary | 2% to Pension Fund | 2% to Pension Fund | No Social Tax |
Armenia | Progressive PIT: 23% up to 150,000 AMD, 20% above | 5% up to 500,000 AMD, 10% above | 7.5% to Social Security Fund | None specified |
Azerbaijan | 14% PIT up to 2,500 AZN, 25% above | 3% to Social Protection Fund | 22% to Social Protection Fund | 0.5% Unemployment Insurance (both employee and employer) |
Georgia
In Georgia, employers are responsible for managing payroll taxes and contributions from employee salaries. The tax system is designed to be relatively straightforward, with the following key components:
Payroll Taxes:
Personal Income Tax (PIT): A flat rate of 20% applied to an employee's gross salary.
Pension Contributions: Employees contribute 2% of their gross income to the pension fund, with an additional 2% contributed by the employer and 2% by the state, making a total of 6%.
Employer Social Contributions:
Social Tax: Unlike many other countries, Georgia does not impose a social tax on employers. However, they are required to handle the pension contributions as outlined above.
Armenia
Armenia’s tax system requires employers to manage payroll taxes and social contributions effectively. Here’s how it works:
Payroll Taxes:
Personal Income Tax (PIT): A progressive tax system where income up to 150,000 AMD is taxed at 23%, while income above this threshold is taxed at a reduced rate of 20% on amounts exceeding 150,000 AMD.
Mandatory Social Contributions: Employees contribute 5% of their salary up to 500,000 AMD and 10% for the portion above 500,000 AMD.
Employer Social Contributions:
Social Security Contributions: Employers are required to contribute an additional 7.5% of the employee’s salary to the Social Security Fund.
Azerbaijan
In Azerbaijan, employers are responsible for ensuring that all payroll taxes and contributions are correctly managed. The key components include:
Payroll Taxes:
Personal Income Tax (PIT): A flat rate of 14% applies to monthly income up to 2,500 AZN. Income above this is taxed at 25%.
Mandatory Social Insurance Contributions: Employees contribute 3% of their gross salary to the state social protection fund.
Employer Social Contributions:
Social Insurance Contributions: Employers must contribute 22% of the employee’s gross salary to the state social protection fund.
Unemployment Insurance: An additional 0.5% is contributed by both the employer and the employee towards unemployment insurance.
Mandatory Leave Benefits for Remote Employees in Georgia
Work Hard, Play Harder: Vacation and Holiday Leave
Georgians know how to balance work with life, and their labor laws reflect this. Employees are entitled to at least 24 days of paid annual leave, plus 16 public holidays. This work-life balance is key to maintaining a motivated and productive workforce.
For employees working in hazardous conditions or those with specific disabilities, additional leave allowances may be granted to ensure their well-being.
Sick Leave
Employees in Georgia are entitled to sick leave, which is generally covered by the employer for the initial days and subsequently by the social insurance system, depending on the employment contract terms and the duration of illness. The specifics, including the number of sick leave days and the compensation rate, are usually agreed upon between the employer and employee in the employment contract.
Parental Leave
Parental leave policy in Georgia is very liberal: mothers are entitled to 126 days of paid maternity leave, usually divided as 70 days before the expected due date and 56 days after childbirth. This extends in cases of complications or multiple births up to 140 days. Fathers can also apply for paternity leave, though it is less practiced and not necessarily legally required.
Apart from that, it provides 12 weeks of unpaid parental leave granted up to the age of 5 years to allow flexibility in the family regarding childcare.
Government Support and Incentives for Hiring Remote Workers in the Caucasus
The governments of Georgia, Armenia, and Azerbaijan are keen to attract foreign businesses and talent, offering a range of incentives and support programs.
Tax Incentives
Georgia’s Virtual Zone Status offers significant tax benefits for IT companies, including a 0% corporate income tax rate and VAT exemptions. Armenia’s Free Economic Zones (FEZ) offer similar perks, such as customs duties exemptions and simplified import-export procedures. Azerbaijan also provides tax reliefs for businesses operating within its industrial parks.
Grants and Funding
In addition to tax incentives, there are grants and funding opportunities for startups, especially those in tech and innovation. Georgia's Innovation and Technology Agency (GITA) offers grants to tech startups and companies looking to scale.
Streamlined Procedures
The region ranks relatively high on the World Bank’s Ease of Doing Business Index, thanks to streamlined procedures for starting a business, registering property, and enforcing contracts. This supportive environment helps reduce the red tape that often hinders foreign investment.
Hiring remote employees in other countries: Georgia; Armenia; Azerbaijan
Hiring remote workers involves more than just identifying talent. It's about understanding the nuances that come with a distributed workforce. Each step requires careful consideration, from legal compliance to onboarding for remote environments.
But have you ever imagined finding the perfect team member as easily as shopping online? We have built the best remote hiring platform in the Caucasus. Get to know How to Hire Remote Employees from our Talent Marketplace.
Staff Augmentation
Scale your team fast and agilely with top-notch professionals sourced from our talent pool. Staff augmentation brings in long-term external talent to work side by side with the in-house team, building up the organizational capabilities without long-term commitments. Here is a guide of What Is IT Staff Augmentation
Employer of Record (EOR)
Make your international hiring easier, with Gegidze as a legal employer for your remote employees. Our EOR service handles payroll, taxes, compliance, and all HR management so you can just focus on the core operation while we handle all the employment responsibilities. Check the Employer of Record in Egypt and in In turkey.
Dedicated Team
Comprehensive, fully dedicated teams of experts suitable for your particular needs: this service provides an integrated professional unit that works exclusively on your projects, managed by either you or Gegidze, to assure alignment with your business goals and culture. If you want to know more about How to Hire a Dedicated Development Team in Caucasus
IT Outsourcing
Gegidze allows IT outsourcing any aspect of software development, network management, or other IT functions by providing the advantage of specialized IT skills. We provide full IT services for increasing efficiency and reducing operational costs in the business to drive more organizational focus on strategic business initiatives.
IT Outstaffing
Outsourcing highly professional IT resources working as an extension of your in-house team, with no employment overhead. This service of IT outstaffing allows flexibility and cost-efficiency with top talent access by ramping up or down to meet the needs of your projects. If you don’t know yet which Is right for your business, Outstaffing or Outsourcing, check the guide.
Nearshoring
Improve your company's business operations through nearshoring by re-locating some business functions or teams in Georgia and other closer locations. Proximity, time zone alignment, and cultural compatibility, together with cost-effectiveness, provide that ideal combination for companies to remain agile and competitive through nearshoring.
Confidently Hire in Georgia & Caucasus with Gegidze
The success stories coming out of Georgia and the Caucasus are just the beginning. As seen with companies like Natix GmbH, hiring remote employees from this region offers not only access to top-tier talent but also substantial cost savings. By leveraging the benefits of Georgia's skilled workforce, favorable business policies, and burgeoning tech ecosystem, your business can scale faster and smarter. Let Gegidze be your partner in building a remote team that’s both high-quality and cost-effective. Reach out today and discover the future of remote hiring in the Caucasus.
Frequently Asked Questions (FAQs)
How do I find and hire remote talent from Georgia and the Caucasus?
To find and hire remote talent from Georgia and the Caucasus, start by identifying your specific job requirements and the skills needed. You can search on talent marketplaces, remote job boards, or collaborate with agencies that specialize in hiring remote workers from this region. Define your hiring process clearly, including screening and interviews, to ensure you select the best candidates for your remote team.