Taxes: what to check before buying.

Before calculating price and yield, check three things: the property’s legal status, intended use and your tax status. These answers determine which rules apply at all.

The main distinction is between residential property, commercial property and part of hotel infrastructure. It can affect the rate, reporting and exemption on sale.

This is a working map of questions, not personal tax advice. Confirm the applicable regime on rs.ge or with a tax adviser before the transaction.

An individual generally pays no separate title-transfer tax when buying property. The main costs are title registration, a notary where needed and banking services.

NAPR registration costs GEL 150 in 4 working days, GEL 270 in 1 working day, or GEL 350 on the filing day. Verify current tariffs on napr.gov.ge.

VAT does not generally appear as a separate cost in an ordinary residential purchase. The rule may differ for commercial property, a developer sale or a purchase through a company.

The process is the same for a foreign buyer, who should also budget for currency conversion, bank fees and source-of-funds documents.

An individual’s property tax depends on prior-year family income and the property’s market value. If family income does not exceed GEL 40,000, property other than land is exempt.

For income of GEL 40,000–100,000, the rate is 0.05–0.2% of market value. From GEL 100,000, it is 0.8–1%. The exact rate depends on the applicable calculation.

The declaration is due by 1 November and payment by 15 November. The same principle applies to a foreign owner, who may also need registration and access to rs.ge.

Income from renting residential space for residential use may be taxed at 5% if expenses are not deducted. This is the main regime for long-term residential rent.

If it does not apply or the income falls into another category, standard personal income tax may be 20%. For a non-resident, withholding rules and international treaties must also be checked.

Short-term and hotel-like rentals are not automatically treated as ordinary residential rent. It matters who rents the property, through which platform, what status it has and which expenses are documented.

Define the property status and rental model first, then apply the corresponding tax.

Gain from a property sale is taxable unless an exemption applies. The main exemption concerns a residential apartment or house: after more than two years of ownership, gain on sale is exempt.

If sold earlier, the gain may be taxed at 5%. In short: 5% on gain during the first two years and 0% after more than two years.

This rule does not automatically apply to commercial property or an apartment within hotel infrastructure. If the property is not legally residential, the standard 20% rate may apply. Check its status before purchase.

Even if prices are stated in USD or EUR, tax is calculated under Georgian rules. Verify the exchange rate, purchase basis, improvement costs and supporting documents with an adviser.

A foreign buyer generally does not pay a higher rate merely because of citizenship. Differences concern reporting, bank transfers and tax residency.

Owning property in Georgia does not by itself create a permanent establishment for a non-resident. However, Georgian rental income or gain on sale may be taxed here.

The main tax-residency test is linked to 183 days of presence. A specific case also depends on the applicable treaty, source of income and personal status. Owning an apartment alone does not make someone a Georgian tax resident.

Double-tax treaties vary by country. They may change credit or reporting rules, but Georgian-source income may still need to be declared.

Keep the registry extract and property status, intended-use plan, and records of price, costs and source of funds together. This makes the check and later reporting easier.

Gain from selling a residential apartment or house after more than two years may be taxed at 0%. That exemption does not automatically cover every apartment: a commercial property or aparthotel needs its own confirmation.

Partner Estate checks a property’s legal status before recommending it. This does not replace tax advice, but helps reveal the question that needs a specialist before it becomes a problem.

Rates and deadlines on this page were checked on 15 July 2026. Confirm them on rs.ge or with a tax adviser before a specific transaction.