Selling an apartment in Georgia: capital gains and tax

Before finding another buyer, establish what you are selling: a registered apartment, commercial premises or a claim under a construction agreement. Then check restrictions, outstanding debt and tax classification. The word “resale” does not settle those questions.

Residential property: rate and exemption

Tax Code Article 81(3) sets 5% on the gain from an individual’s sale of a residential apartment or house with the attached land. Article 82(1)(f.a) exempts the gain where such housing has been owned for more than two years. The rate is not 5% of the entire selling price. Source: Tax Code, Articles 81(3) and 82(1)(f.a), checked 30 October 2026.

Check that the records establish the qualifying property type and seller circumstances. Commercial property, a company sale or assignment of a contractual claim need their own analysis; this guide does not assume the same rate applies.

Holding period and gain calculation

Article 82(4) separately defines the start and end of the holding period and the gain calculation. For purchased assets, the gain relates to the difference between disposal price and acquisition price when title arose; gratuitously received property uses a different reference, its market value on receipt. Source: Tax Code, Article 82(4), checked 30 October 2026.

Gather the acquisition document, registration history and proposed sale agreement. Do not simply count from the deposit or key handover. Inheritance, gifts, division of property and construction arrangements may need a document-specific application of the article’s rules.

Retain agreements, bank records and the calculation in the applicable accounting currency. Do not automatically deduct every repair or commission from the taxable amount: confirm permitted treatment for the operation. Cash profit after all expenses and the legally defined taxable gain need not be identical.

Filing and sale preparation

For an individual receiving a gain from transferring property outside entrepreneurial activity, Article 153(12) requires an income-tax return no later than the 15th of the month following the reporting month. Do not substitute the general annual deadline for this special rule; establish classification and payment obligations before the transaction. Source: Tax Code, Article 153(12), checked 30 October 2026.

Obtain an up-to-date extract and agree mortgage release and settlement where debt remains. Include agreed commissions, bank charges and building-service settlement in the exit budget. Article 183 requires a written transaction and registration of the buyer’s ownership: Civil Code, Article 183, checked 30 October 2026.

Assignment and residence status

To exit a construction agreement, review developer consent, charges, unpaid balances and document transfer. Check the tax treatment of the particular right being assigned. The residential-apartment rule should not automatically be applied to every preliminary agreement.

If the property supports a short-term residence permit, selling affects that basis: Article 16(1)(f) provides for termination of the permit when the relevant ownership right ends. Review the consequences before signing the sale. Source: Law on the Legal Status of Aliens, Article 16, checked 30 October 2026.

Frequently asked questions

Is every property sale tax-free after two years?

The rule discussed here concerns gains on residential apartments or houses with attached land owned for more than two years. Other property and circumstances need separate review. Source: Tax Code, Article 82(1)(f), checked 30 October 2026.

Does the period start with the first payment?

Do not use that date without review. Article 82(4) sets specific rules using documents establishing and transferring the right. Source: Tax Code, Article 82(4), checked 30 October 2026.

Can I promise appreciation before completion?

Our catalogue cannot establish a future exit price. Dated asking offers can support comparison, but they are not completed transactions or a return forecast.