Real Estate Taxes in Georgia: What Buyers and Investors Should Know
Georgia is known for its transparent and investor-friendly tax system. Low tax rates and simple regulations make it one of the most attractive countries for property investment. Whether you plan to buy an apartment in Tbilisi or rent it out for income, it’s important to understand which taxes apply and when.
1. Property Purchase Tax
When buying real estate in Georgia, there is no property acquisition tax — unlike in most other countries.
The buyer only pays a small state registration fee to the National Agency of Public Registry (NAPR):
- 50 GEL — registration within 4 business days;
- 150 GEL — express registration within 1 day.
💡 Note: if you purchase property through a company, taxes may vary depending on the business structure and financing source.
2. Annual Property Tax
Property owners — both individuals and companies — pay an annual property tax.
For Individuals
- Rate: up to 1% of the household’s total annual income, if it exceeds 40,000 GEL.
- No tax is charged if income is below that threshold.
- The actual rate varies by municipality (typically 0.2–1% in Tbilisi).
For Legal Entities
- Rate: up to 1% of the cadastral value of the property, regardless of income.
- Additional local taxes may apply if the company rents out real estate.
3. Rental Income Tax
If you rent out your property, your rental income is subject to tax.
- Residents of Georgia — 20% of net income (with possible deductions).
- Non-residents — flat 10% of gross income, with no deductions.
💡 You can register as an individual entrepreneur and pay just 1% of turnover, provided annual income does not exceed 500,000 GEL — a popular option for landlords.
4. Capital Gains Tax on Property Sale
When selling real estate, the tax rate depends on the holding period:
- 0% — if the property is owned for more than 2 years;
- 20% — if sold within 2 years after purchase.
For companies, profit from the sale is taxed at 15%, but only when the income is distributed as dividends.
5. VAT (Value Added Tax)
The standard VAT rate in Georgia is 18%, but it only applies to:
- Commercial properties (offices, retail spaces);
- Construction and development activities.
💡 No VAT is charged when buying a residential apartment from a private owner.
6. Tax Benefits and Investor Advantages
- No inheritance or gift tax for transfers between close relatives.
- Double-taxation treaties with over 50 countries prevent duplicate taxation.
- Reduced tax regimes for small and micro-businesses (1% or 0% rates).
- Simple online tax reporting via the Georgian Revenue Service portal.
Example: Rental Income in Tbilisi
Let’s say an investor from Europe rents out an apartment in Saburtalo for $900 per month:
- Annual income: ~$10,800;
- Tax for non-residents: 10% = $1,080/year;
- Net profit after tax: $9,720/year.
📈 Additionally, property prices in Tbilisi often appreciate 8–10% per year, combining rental yield with capital growth.
Conclusion
Georgia’s tax system is one of the most favorable in the region. There’s no purchase tax, annual rates are low, and compliance is simple — all of which make the country highly attractive for real estate investors.
Why Choose Tbilisi Property
Tbilisi Property provides expert guidance on all aspects of real estate taxation in Georgia. We help clients select high-yield properties, manage paperwork, and optimize their tax obligations.
With us, you can invest in Georgia safely, reduce expenses, and earn stable returns.
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