Georgia offers one of the lowest property tax rates in the region, with a maximum rate of 1 percent of the property’s market value. Whether you purchase as an individual or through a Georgian‑registered company, the tax framework is straightforward, but eligibility and filing requirements differ.
Eligibility for Zero Property Tax
- Natural persons (individuals) who had Georgian‑sourced income of ≤ 40,000 GEL (≈ US $16,000) in the previous calendar year are exempt from property tax.
- If the same income exceeds 40,000 GEL, the owner must file a property‑tax declaration and pay the applicable rate (up to 1 %).
Tax Rates and Calculation
| Factor | Details |
|---|---|
| Maximum rate | 1 % of the declared market value |
| Actual rate | Determined automatically by the tax portal based on the property’s location and market value; never exceeds 1 % |
| Market value | Generally the purchase price, unless a significant re‑valuation occurs |
| Location impact | Central Tbilisi properties may have rates closer to the 1 % ceiling; peripheral areas often have lower rates |
Ownership Structures
- Individual ownership – Applies the rates described above.
- Company ownership – The tax base is the property’s book value in the company’s accounting records. The same 1 % ceiling applies, but the calculation method differs.
Rental Income Tax
- Renting out a property as accommodation incurs a 5 % tax on the rental income, separate from the property tax.
Registration Process
- Sign the purchase agreement at the notary or registry.
- Register the deed at the public registry; a registration fee of up to 100 GEL applies (fixed, not proportional to price).
- The new owner’s name is entered into the land register, completing the legal transfer.
Annual Filing Deadlines
| Owner type | Declaration deadline | Payment deadline |
|---|---|---|
| Individual | ≤ 1 Nov (property tax) | ≤ 15 Nov |
| Company (property) | ≤ 31 Mar (company tax filing) | — |
| Company (property) | ≤ 1 Apr (property tax) | — |
A single declaration can cover both real estate and land holdings. Couples living together may file a joint declaration, listing both owners.
Land Tax Specifics
- Non‑agricultural land – Taxed at 0.25 GEL per square meter.
- Agricultural land – Taxed per hectare; rates vary by location but also do not exceed the 1 % overall ceiling.
- The tax is based on land size and purpose rather than market value.
Practical Considerations
- Negotiation culture: Real‑estate agents in Georgia may operate differently from those in other markets; engaging a local professional can smooth the process.
- Tax planning: Assess whether individual or corporate ownership yields a lower overall tax burden, considering both property tax and potential rental income tax.
- Compliance: Missing the November 1/15 deadlines for individuals or the March/April deadlines for companies can result in penalties; set reminders well in advance.
