Taxes and costs of buying and owning property in Georgia

Georgia's tax system for an apartment owner is simple: almost nothing at purchase, little while owning, 5 % on rent. The figures below follow the Georgian Tax Code as of publication; check current rates before a deal.

At purchase

• No purchase tax. No stamp duty and no VAT for the buyer (VAT is already inside the developer's price).
• Title registration — 50–200 GEL.
• The buyer normally does not pay a broker's fee: the developer pays the commission, and the contract is signed at the developer's prices.

While owning

• Property tax is paid only by owners whose annual family income exceeds 40,000 GEL (including foreign income if you are a Georgian tax resident). The rate is 0.05 % to 1 % of market value, set by the municipality; for most non-residents without Georgian income no tax arises.
• Utilities: electricity, water, gas, internet — metered, usually $40–80 a month for a 50 m² apartment.
• Complex maintenance (security, lifts, pool, grounds): $0.3–0.8 per m² a month in ordinary buildings, $1–2 per m² in complexes with hotel service.

When renting out

• 5 % of income — the special regime for individuals renting out housing: register with the tax authority and file a monthly return. Without registration the general 20 % rate applies.
• If a hotel operator manages the complex, tax withholding depends on its status and the contract. Payments by a tourist enterprise are subject to withholding under Article 133² of the Tax Code of Georgia. Check which deductions the operator includes when paying income to the owner.

When selling

• If you have owned the apartment for more than 2 years — no tax.
• If less — 5 % of the difference between the sale and purchase price.
• Assigning a contract for an apartment under construction is taxed the same way — 5 % of the profit.

In short

For an investor who buys from a developer and rents out: practically no one-off costs at purchase, and annually 5 % of rent plus complex maintenance. Factor these two items into your yield — see the rental yield guide.