Property Taxes in Georgia for Foreign Buyers: What You Actually Pay

The short answer: Georgia is one of the lightest property-tax jurisdictions you will find. There is no tax on buying, residential rental income is taxed at a flat 5%, annual property tax only applies above an income threshold, and capital gains are fully exempt after two years of ownership.

What tax do you pay when buying?

None. Georgia has no purchase tax, no stamp duty and no buyer-side transfer tax. The only transaction cost is the Public Registry registration fee — from around 50 GEL for standard processing, more for same-day service. When buying a new build directly from a developer, 18% VAT is normally already included in the quoted price; resales between individuals carry no VAT.

What do you pay while holding the property?

Annual property tax applies only if your household's annual income exceeds 40,000 GEL — and even then the rate is set locally between 0.05% and 1% of the property's market value. Many foreign owners who earn no Georgian income fall outside this tax entirely; confirm your position with an advisor.

What tax do you pay on rental income?

Individuals renting out residential property can register for the special 5% flat regime on gross rental income — one of the lowest effective rental tax rates in Europe. Commercial rentals are taxed differently (typically 20% on net income), which matters if you buy an "apart-hotel" unit classified as commercial.

Which regime applies to your unit — residential 5% or commercial? A vetted Kavlian tax advisor can confirm before you buy, free of charge.

What happens when you sell?

Scenario	Tax on the gain
Sold after 2+ years of ownership	0% — fully exempt
Sold within 2 years	Generally 5% on the gain for individuals — confirm your case

Tax rules can change and individual circumstances differ — treat this as orientation, not advice, and confirm current rates before a transaction.

Do foreigners pay more than locals?

No. Georgia applies the same property tax rules to foreign and local owners. There is also no worldwide-income taxation for non-residents: if your only Georgian income is rent, only that rent is taxed in Georgia. Double taxation treaties (including with Turkey and many EU states) may further reduce friction — check your home country's rules on declaring foreign property.

FAQ

Do I need a Georgian tax ID to rent out my apartment?

Yes — registering as a taxpayer is a quick procedure and is required to use the 5% regime.

Is there an inheritance tax?

Georgia levies no inheritance tax on first- and second-degree relatives; other cases may vary — seek advice for estate planning.

Who pays the agent's commission?

Customarily the seller pays the listing agent in Georgia, but always confirm the arrangement in writing before viewing.

Plan your numbers before you buy

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