Updated:
- 0% capital gains tax on sale after 2 years of ownership
- No more than 1% a year property tax on assessed value, no local surcharges
- Renting out: 20% as ordinary income, or 1% of turnover via IE status — the latter is almost always better
- No wealth, inheritance, or gift tax on real estate
On Purchase
The purchase itself isn't subject to a separate tax — there's only a registration fee for the title, around ₾150–350 (see the buying process). That's not strictly a tax, but a fee for an administrative service.
On Ownership
The annual property tax is no more than 1% of the property's assessed value, and in practice often lower — the specific rate depends on the municipality and the household's total income. No additional local or municipal surcharges apply on top of this — unlike many European jurisdictions, where a base property tax gets stacked with additional city fees.
On Renting Out
On Sale
If the property was owned for more than 2 years, the capital gains tax on sale is 0%. This is one of the strongest points of Georgia's tax regime for long-term owners. Different rules apply if sold within two years — the exact rate in that case should be checked with a tax advisor for your specific situation, since it depends on the seller's status and how the deal is structured.
What Doesn't Exist at All
Georgia has no separate wealth, inheritance, or gift tax applicable to real estate for individuals. That's not a legislative gap, but a consistent part of the country's tax policy, which avoids these categories of tax altogether.
Frequently Asked Questions
What is the tax when selling an apartment in Georgia?
If the property was owned for more than 2 years, the capital gains tax is 0%. Different rules apply if sold within two years — check with a tax advisor for your specific situation.
How much is the annual property tax in Georgia?
No more than 1% of the property's assessed value, often lower depending on the municipality and household income. No additional local surcharges.
How is rental income taxed?
By default, 20% as ordinary personal income. The alternative is small-business IE status: 1% of turnover up to ~500,000 GEL a year, which is more favorable for most private landlords.
Is there a wealth or inheritance tax on real estate?
No — neither a separate wealth tax, nor an inheritance or gift tax on real estate for individuals.